BILL NUMBER: S3875
SPONSOR: HOYLMAN-SIGAL
 
TITLE OF BILL:
An act to amend the civil practice law and rules and the surrogate's
court procedure act, in relation to addressing delay in payment of a
settlement where the settlement requires court approval
 
JUSTIFICATION:
Section 5003-a of the CPLR sets forth times within which a settling
defendant must pay all sums due following the tender of a release and
stipulation of discontinuance in an action. Difficulties arise, however,
with cases involving an infant, an incompetent or the death of a plain-
tiff, where the release cannot be tendered without prior court approval.
Usually it takes at least several weeks (occasionally, several months or
longer) between the proposed settlement and court approval. Thus, the
anomaly exists that the only litigants who do not receive their settle-
ment monies "promptly" are those who are under the courts' protection.
The interest rate set forth in the proposed amendments is the statutory
rate of interest on a judgment. Interest begins to run from the
fifteenth day, or in the case of a state or municipal entity from the
sixty-first day, following the day that the proposed settlement is
entered into and continues to run until the day that the order or judg-
ment is signed. Provision is also made for annuity payments. Once the
order or judgment is signed, the defendant then will have 14 days or, in
the case of a state or municipal entity, 61 days, to make payment.
The date and terms of the proposed settlement shall be set forth in a
writing or court transcript, a copy of which shall be provided to the
court in order to calculate the days of interest.
 
LEGISLATIVE HISTORY:
S.2602 of 2023-2024 (Hoylman-Sigal): Died in Judiciary
A.3773 of 2023-2024 (Weinstein): Died in Judiciary
S.0469 of 2021-2022 (Hoylman): Died in Judiciary
A.2547 of 2021-2022 (Weinstein): Advanced to Third Reading Calendar
S.4238 of 2019-2020 (Hoylman): Died in Judiciary
A.5620 of 2019-2020 (Weinstein): Advanced to Third Reading Calendar
S.7035 of 2010 (Schneiderman): Died on Third Reading
 
FISCAL IMPLICATIONS:
This measure will have a de minimis fiscal impact on the State, limited
to those instances where the State has entered into a settlement of
claims with a minor, an incompetent, or a plaintiff who has died.
 
EFFECTIVE DATE:
This act shall take effect on the first of January next succeeding the
date on which it shall have become law, and shall apply to all actions
settled on or after that date.

Statutes affected:
S3875: 1207 civil practice law