§ 5003-A. Prompt payment following settlement.
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§ 5003-a. Prompt payment following settlement.
(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 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
settling 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 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 shall not inure to the benefit of any
insurance carrier for a municipality or any subdivision thereof, or any
public corporation that is not 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.
(c)When an action to recover damages has been settled and the
settling 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 of the comptroller's determination that all papers required
to effectuate the settlement have been received by him. The provisions
of this paragraph 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.
(d)In an action which requires judicial approval of settlement, other
than an action to which subdivision
(c)of this section applies, the
plaintiff shall also tender a copy of the order approving such
settlement with the duly executed release and stipulation discontinuing
action executed on behalf of the plaintiff.
(e)In the event that a settling defendant fails to promptly pay all
sums as required by subdivisions (a), (b), and
(c)of this section, any
unpaid plaintiff may enter judgment, without further notice, against
such settling defendant who has not paid. The judgment shall be for the
amount set forth in the release, together with costs and lawful
disbursements, and interest on the amount set forth in the release from
the date that the release and stipulation discontinuing action were
tendered.
(f)Nothing in this section shall apply to settlements subject to
article seventy-four of the insurance law or to future installment
payments to be paid pursuant to a structured settlement agreement.
(g)The term "tender", as used herein, shall mean either to personally
deliver or to mail, by registered or certified mail, return receipt
requested.