N.Y. Civil Practice Law & Rules § 5003-a: Prompt payment following settlement

§ 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.