Prohibits persons, firms, or corporations whose interests are adverse to that of a person who received personal injuries or death as a result of an action by such person, firm or corporation from negotiating any contracts or settlements releasing such person, firm or corporation from liability for the tortious or potentially tortious act within thirty days of such act.
STATE OF NEW YORK
________________________________________________________________________
8706
2025-2026 Regular Sessions
IN ASSEMBLY
June 2, 2025
___________
Introduced by M. of A. WALKER -- read once and referred to the Committee
on Codes
AN ACT to amend the civil practice law and rules, in relation to prohib-
iting certain entities from negotiating any contracts or settlements
releasing such entities from liability for a tortious or potentially
tortious act within thirty days of such act
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. This act shall be known and may be cited as the "unfair
2 settlement timing act (USTA)".
3 § 2. The civil practice law and rules is amended by adding a new
4 section 5003-c to read as follows:
5 § 5003-c. Fair settlement timing. Notwithstanding any other law or
6 rule, no person, firm or corporation whose interest is adverse to that
7 of a person receiving personal injuries or death as a result of a
8 tortious or potentially tortious act may negotiate any contract, written
9 or oral, or any settlement to release such person, firm or corporation
10 from liability for such act within thirty days from the date of the
11 tortious or potentially tortious act. Any contract, settlement or
12 release obtained in violation of this section shall be voidable at the
13 option of the releasor.
14 § 3. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13180-01-5
