NY State Senate Bill 2021-S469

Senate Bill S469

2021-2022 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

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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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to judiciary
Jan 06, 2021	referred to judiciary

2021-S469 (ACTIVE) - Details

See Assembly Version of this Bill:: A2547
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
2019-2020: S4238, A5620
2023-2024: S2602, A3773

2021-S469 (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.

2021-S469 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S469

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

 
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.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 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.

2021-S469 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    469
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD00018-01-1

 S. 469                              2
 
 even  though  the amount of the settlement may exceed the jurisdictional
 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.

 S. 469                              3
 
   (b)  When an action to recover damages has been settled and the settl-
 ing defendant is a municipality  or  any  subdivision  thereof,  or  any
 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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