Unofficial Draft Copy
**** As of: 11/07/2024, 08:29:01
69th Legislature 2025 Drafter: Jameson Walker, **** LC 0198
1 **** BILL NO. ****
2 INTRODUCED BY ****
3
4 A BILL FOR AN ACT ENTITLED: “AN ACT AMENDING VOLUNTARY PAYMENTS LAWS TO INCLUDE
5 CONTRACTUAL LIABILITY CLAIMS; AMENDING SECTIONS 26-1-701, 26-1-703, AND 26-1-706, MCA;
6 PROVIDING AN APPLICABILITY DATE.”
7
8 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
9
10 Section 1. Section 26-1-701, MCA, is amended to read:
11 "26-1-701. Legislative policy. The legislature declares that the health, welfare, and safety of the
12 people of the state of Montana would be enhanced by the expeditious handling of liability claims. The
13 legislature further declares that the handling of liability claims would be expedited if voluntary payment by or on
14 behalf of one person to or on behalf of a person who has sustained injury to that person, or damage to that
15 person's property, or breach of contract could not be construed as an admission of fault or liability as to any
16 claim arising out of the occurrence that gave rise to the injury or damage."
17
18 Section 2. Section 26-1-703, MCA, is amended to read:
19 "26-1-703. Voluntary partial payment of claim not an admission of fault or waiver. No voluntary
20 partial payment of a claim against any person based on alleged liability of that person for injury to person,
21 including death, or damage to property arising out of any occurrence, or damage arising from contract shall be
22 construed as an admission of fault or liability or as a waiver or release of claim by the person to whom or in
23 whose behalf such payment was made. No voluntary partial payment shall be construed to reduce the amount
24 of damages which may be pleaded or proved in any action arising out of such occurrence."
25
26 Section 3. Section 26-1-706, MCA, is amended to read:
27 "26-1-706. Effect of payment on judgment. After entry of a judgment in an action for damages for
28 personal injuries, including death, or for damage to property arising out of any occurrence, or for damage
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 Unofficial Draft Copy
**** As of: 11/07/2024, 08:29:01
69th Legislature 2025 Drafter: Jameson Walker, **** LC 0198
1 arising from contract, any voluntary partial payment theretofore made shall be treated as a credit against such
2 judgment and shall be deductible from the amount of such judgment. If after partial voluntary payments are
3 made as herein provided for, it shall be determined by a court of competent jurisdiction that the person who
4 made such payments or on whose behalf such payments were made is liable for an amount which is less than
5 the amount of the voluntary payments already made, such person shall have no right of action for the recovery
6 of the amount by which the voluntary payments exceeded the amount of the judgment."
7
8 NEW SECTION. Section 4. Applicability. [This act] applies to contractual liability claims in which a
9 cause of action has accrued on or after October 1, 2025.
10 - END -
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