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Assembly Bill A8706

2025-2026 Legislative Session

Prohibits 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

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Current Bill Status Via S8185 - Passed Assembly

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2025-A8706 (ACTIVE) - Details

See Senate Version of this Bill:
S8185
Law Section:
Civil Practice Law and Rules
Laws Affected:
Add §5003-c, CPLR

2025-A8706 (ACTIVE) - Summary

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.

2025-A8706 (ACTIVE) - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8706
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               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:
 
   Section 1. This act shall be known and may be  cited  as  the  "unfair
 settlement timing act (USTA)".
   §  2.  The  civil  practice  law  and rules is amended by adding a new
 section 5003-c to read as follows:
   § 5003-C. FAIR SETTLEMENT TIMING.   NOTWITHSTANDING ANY OTHER  LAW  OR
 RULE,  NO  PERSON, FIRM OR CORPORATION WHOSE INTEREST IS ADVERSE TO THAT
 OF A PERSON RECEIVING PERSONAL INJURIES  OR  DEATH  AS  A  RESULT  OF  A
 TORTIOUS OR POTENTIALLY TORTIOUS ACT MAY NEGOTIATE ANY CONTRACT, WRITTEN
 OR  ORAL,  OR ANY SETTLEMENT TO RELEASE SUCH PERSON, FIRM OR CORPORATION
 FROM LIABILITY FOR SUCH ACT WITHIN THIRTY DAYS  FROM  THE  DATE  OF  THE
 TORTIOUS  OR  POTENTIALLY  TORTIOUS  ACT.  ANY  CONTRACT,  SETTLEMENT OR
 RELEASE OBTAINED IN VIOLATION OF THIS SECTION SHALL BE VOIDABLE  AT  THE
 OPTION OF THE RELEASOR.
   § 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

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