Bill > S03875

This bill addresses delays in settlement payments by modifying several legal provisions to require interest be paid on settlement amounts in cases requiring court approval. Specifically, the bill mandates that court orders or judgments for settlements involving infants, incompetent persons, or conservatees must include interest calculated at the statutory judgment interest rate. The interest begins accruing either 15 days after the settlement is entered into (for most cases) or 61 days after the settlement is entered into for municipal or state entities. The bill includes provisions that exempt the interest calculation for the present value of annuities if they are funded on time, but interest will accrue on any late periodic payments. Additionally, the bill requires that the settlement date and terms be documented in writing or court transcripts to help calculate the interest period. The legislation also adds new requirements for settlement documentation, such as including the daily interest rate and settlement details in court records, and mandates that courts send a copy of the settlement order to the attorney or representative of the infant or incompetent person. The bill will apply to all actions settled on or after its effective date, which will be the first day of January following its passage into law.

Justice

https://www.nysenate.gov/legislation/bills/2025/S3875