NY State Senate Bill 2019-S4238

Senate Bill S4238

2019-2020 Legislative Session

Provides that for settlements that require a court order the order shall provide for the payment of interest on the settlement amount at the statutory rate

download bill text pdf

Archive: Last Bill Status - In Senate Committee Judiciary Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to judiciary
Mar 05, 2019	referred to judiciary

2019-S4238 (ACTIVE) - Details

See Assembly Version of this Bill:: A5620
Current Committee:: Senate Judiciary
Law Section:: Civil Practice Law and Rules
Laws Affected:: Amd §§1207 & 5003-a, R1208, CPLR; amd §2220, SCPA
Versions Introduced in Other Legislative Sessions:: 2009-2010: A2874
2011-2012: A634
2013-2014: A999
2015-2016: A281
2017-2018: A1499
2021-2022: S469, A2547
2023-2024: S2602, A3773

2019-S4238 (ACTIVE) - Summary

Provides that for settlements that require a court order, the order, or the judgment in a special proceeding, shall provide for the payment of interest on the settlement amount at the statutory interest rate on judgments.

2019-S4238 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S4238

SPONSOR: HOYLMAN
 
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

 
PURPOSE OF BILL:

This proposal amends the CPLR (S§ 1207, 1208, 5003-a) and gate's Court
Procedure Act (§ 2220) to permit interest to there is a delay in a
proposed settlement of claims by an petent, or in a wrongful death
action, caused by the need approval.the Surroaccrue where infant, incom-
for court

 
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.7035 (2010) - Died on Third Reading

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

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.

2019-S4238 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4238
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               March 5, 2019
                                ___________
 
 Introduced  by  Sen. HOYLMAN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Judiciary
 
 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

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  1207  of  the  civil  practice law and rules, as
 amended by chapter 355 of the laws  of  1986,  is  amended  to  read  as
 follows:
   §  1207.  Settlement of action or claim by infant, judicially declared
 incompetent or conservatee, by whom  motion  made;  special  proceeding;
 notice;  order of settlement. (A) Upon motion of a guardian of the prop-
 erty or guardian ad litem of an infant or, if there is no such guardian,
 then of a parent having legal custody of an infant, or if  there  is  no
 such parent, by another person having legal custody, or if the infant is
 married,  by an adult spouse residing with the infant, or of the commit-
 tee of the property of a person judicially declared to  be  incompetent,
 or  of  the  conservator of the property of a conservatee, the court may
 order settlement of any action commenced by or on behalf of the  infant,
 incompetent  or  conservatee. If no action has been commenced, a special
 proceeding may be commenced upon petition of such a  representative  for
 settlement of any claim by the infant, incompetent or conservatee in any
 court  where  an  action for the amount of the proposed settlement could
 have been commenced.  Unless otherwise provided by  rule  of  the  chief
 administrator  of  the courts, if no motion term is being held and there
 is no justice of the supreme court  available  in  a  county  where  the
 action  or an action on the claim is triable, such a motion may be made,
 or special proceeding may be commenced, in a county court and the county
 judge shall act with the same power as a justice of  the  supreme  court
 even  though  the amount of the settlement may exceed the jurisdictional
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD00925-01-9

 S. 4238                             2
 
 limits of the county court. Notice of the motion or  petition  shall  be
 given as directed by the court. An order on such a motion shall have the
 effect  of a judgment. Such order, or the judgment in a special proceed-
 ing,  shall  be  entered without costs and shall approve the fee for the
 infant's, incompetent's or conservatee's attorney, if any.
   (B) SUCH ORDER, OR THE JUDGMENT IN A SPECIAL PROCEEDING, SHALL PROVIDE
 FOR THE PAYMENT OF INTEREST ON THE SETTLEMENT AMOUNT  AT  THE  STATUTORY
 INTEREST RATE ON JUDGMENTS, TO BE COMPUTED COMMENCING THE FIFTEENTH DAY,
 OR  WHERE  THE  SETTLING DEFENDANT IS A MUNICIPAL OR STATE ENTITY AS SET
 FORTH IN SUBDIVISION (B) OR (C) OF SECTION FIVE THOUSAND THREE-A OF THIS
 CHAPTER THEN COMMENCING FROM THE SIXTY-FIRST DAY FOLLOWING THE DAY  THAT
 THE  PROPOSED  SETTLEMENT  IS  ENTERED INTO AND CONTINUING UNTIL THE DAY
 THAT THE ORDER OR JUDGMENT IS  SIGNED.  WHERE  THE  PROPOSED  SETTLEMENT
 INCLUDES AN ANNUITY TO PROVIDE FOR PERIODIC PAYMENTS, INTEREST SHALL NOT
 BE  COMPUTED  ON  THE  PRESENT  VALUE  OF  THE ANNUITY PROVIDED THAT THE
 DEFENDANT TIMELY FUNDS THE ANNUITY, BUT INTEREST  SHALL  ACCRUE  ON  ANY
 PERIODIC  PAYMENT  MADE LATER THAN THE PAYMENT SCHEDULE SET FORTH IN THE
 PROPOSED SETTLEMENT. THE DATE AND TERMS OF THE PROPOSED SETTLEMENT SHALL
 BE SET FORTH TO ALL COUNSEL OR PARTIES IN WRITING, OR IN A  COURT  TRAN-
 SCRIPT, AND A COPY OF THE WRITING OR TRANSCRIPT SHALL BE PROVIDED TO THE
 COURT IN ORDER TO CALCULATE THE DAYS OF INTEREST.
   §  2.  Paragraphs 7 and 8 of subdivision (a) of rule 1208 of the civil
 practice law and rules, paragraph 7 as amended and paragraph 8 as  added
 by chapter 844 of the laws of 1968, are amended and a new paragraph 9 is
 added to read as follows:
   7.  whether  reimbursement  for  medical  or  other  expenses has been
 received from any source; [and]
   8. whether the infant's or incompetent's representative or any  member
 of  the  infant's  or  incompetent's family has made a claim for damages
 alleged to have been suffered as a result of the same occurrence  giving
 rise  to the infant's or incompetent's claim and, if so, the amount paid
 or to be paid in settlement of such claim or if such claim has not  been
 settled the reasons therefor[.]; AND
   9.  THE  DAILY RATE OF INTEREST ON THE SETTLEMENT COMPUTED PURSUANT TO
 SUBDIVISION (B) OF SECTION TWELVE HUNDRED SEVEN OF THIS  ARTICLE  AND  A
 COPY OF THE COURT TRANSCRIPT OR WRITING SETTING FORTH THE DATE AND TERMS
 OF THE PROPOSED SETTLEMENT.
   §  3.  Rule  1208  of  the  civil practice law and rules is amended by
 adding a new subdivision (g) to read as follows:
   (G) DELIVERY OF ORDER.   UPON SIGNING THE  ORDER,  OR  JUDGMENT  IN  A
 SPECIAL PROCEEDING, THE COURT SHALL SEND A COPY OF THE ORDER OR JUDGMENT
 TO  THE  ATTORNEY REPRESENTING THE INFANT OR INCOMPETENT, OR IF THERE IS
 NO ATTORNEY, TO THE REPRESENTATIVE OF THE INFANT OR INCOMPETENT.
   § 4. Subdivisions (a), (b) and (c) of  section  5003-a  of  the  civil
 practice law and rules, as added by chapter 269 of the laws of 1992, are
 amended to read as follows:
   (a)  When  an action to recover damages has been settled, any settling
 defendant, except those defendants to whom subdivisions (b) and  (c)  of
 this  section  apply,  shall  pay all sums due to any settling plaintiff
 within twenty-one days, OR IF IT IS AN ACTION  WHICH  REQUIRES  JUDICIAL
 APPROVAL  OF SETTLEMENT, WITHIN FOURTEEN DAYS of tender, by the settling
 plaintiff to the settling defendant, of a duly executed  release  and  a
 stipulation  discontinuing  action  executed  on  behalf of the settling
 plaintiff.
   (b) When an action to recover damages has been settled and the  settl-
 ing  defendant  is  a  municipality  or  any subdivision thereof, or any

 S. 4238                             3
 
 public corporation that is not indemnified by the state,  it  shall  pay
 all  sums  due to any settling plaintiff within ninety days, OR IF IT IS
 AN ACTION WHICH REQUIRES JUDICIAL APPROVAL OF SETTLEMENT,  WITHIN  SIXTY
 DAYS  of  tender,  by  the  settling  plaintiff  to it, of duly executed
 release and a stipulation discontinuing action executed on behalf of the
 settling plaintiff. The provisions of this [paragraph] SUBDIVISION shall
 not inure to the benefit of any insurance carrier for a municipality  or
 any  subdivision  thereof,  or any public corporation that is not indem-
 nified by the state. Any such insurance carrier shall pay all  sums  due
 to  any settling plaintiff in accordance with the provisions of subdivi-
 sion (a) of this section.
   (c) When an action to recover damages has been settled and the  settl-
 ing defendant is the state, an officer or employee of the state entitled
 to  indemnification pursuant to section seventeen of the public officers
 law, or a public benefit corporation indemnified by the  state,  payment
 of  all  sums  due to any settling plaintiff shall be made within ninety
 days, OR IF IT IS AN ACTION WHICH REQUIRES JUDICIAL APPROVAL OF  SETTLE-
 MENT,  WITHIN  SIXTY  DAYS  of  the comptroller's determination that all
 papers required to effectuate the settlement have been received  by  him
 OR  HER.  The provisions of this [paragraph] SUBDIVISION shall not inure
 to the benefit of any insurance carrier for the  state,  an  officer  or
 employee  of  the  state entitled to indemnification pursuant to section
 seventeen of the public officers law, or a  public  benefit  corporation
 indemnified  by the state. Any such insurance carrier shall pay all sums
 due to any settling plaintiff  in  accordance  with  the  provisions  of
 subdivision (a) of this section.
   § 5. Section 2220 of the surrogate's court procedure act is amended by
 adding a new subdivision 6 to read as follows:
   6.  THE  ORDER  OR DECREE SHALL PROVIDE FOR THE PAYMENT OF INTEREST ON
 THE SETTLEMENT AMOUNT AT THE STATUTORY INTEREST RATE ON JUDGMENTS, TO BE
 COMPUTED FROM THE FIFTEENTH DAY, OR WHERE THE SETTLING  DEFENDANT  IS  A
 MUNICIPAL  OR  STATE  ENTITY  AS  SET FORTH IN SUBDIVISION (B) OR (C) OF
 SECTION FIVE THOUSAND THREE-A OF THE CIVIL PRACTICE LAW AND RULES,  THEN
 FROM  THE SIXTY-FIRST DAY FOLLOWING THE DAY THAT THE PROPOSED SETTLEMENT
 IS ENTERED INTO AND CONTINUING UNTIL THE DAY THAT THE ORDER OR  JUDGMENT
 IS  SIGNED. WHERE THE PROPOSED SETTLEMENT INCLUDES AN ANNUITY TO PROVIDE
 FOR PERIODIC PAYMENT, INTEREST SHALL NOT  BE  COMPUTED  ON  THE  PRESENT
 VALUE OF THE ANNUITY PROVIDED THAT THE DEFENDANT TIMELY FUNDS THE ANNUI-
 TY,  BUT  INTEREST  SHALL ACCRUE ON ANY PERIODIC PAYMENT MADE LATER THAN
 THE PAYMENT SCHEDULE SET FORTH IN THE PROPOSED SETTLEMENT.  THE DATE AND
 TERMS OF THE PROPOSED SETTLEMENT SHALL BE SET FORTH TO  ALL  COUNSEL  OR
 PARTIES  IN WRITING, OR IN A COURT TRANSCRIPT, AND A COPY OF THE WRITING
 OR TRANSCRIPT SHALL BE PROVIDED TO THE COURT IN ORDER TO  CALCULATE  THE
 DAYS OF INTEREST.
   §  6. This act shall take effect on the first of January next succeed-
 ing the date on which it shall have become a law, and shall apply to all
 actions settled on or after such effective date.

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