When CPLR Section 5003(a) was enacted I know I got really excited...I presume other members of the plaintiff's bar were pleased as well. The section provided that for non-municipal defendants, the settlement check would have to be sent within 21 days of receipt of the release and settlement documents from plaintiff's counsel. It even provided for a mechanism to enter judgment ex-parte if the payments weren't made in timely compliance with the statute.
So has the statute worked? My honest opinion, no! Let's look at the different scenarios that plaintiff's have had to navigate around to get their settlement monies.
1The statute allows municipal defendants[like the City of New York ] 90 days to pay. As usual, they pay when they want to;
2. NYCTA- never pays on time. Whether it's "we lost your papers", "problems with the affidavit of no liens" or some other reason, they are not the world's fastest payers;
3. FOJP-on malpractice cases they always negotiate a "waiver of 5003(a) at the time of settlement[usually 45 of 90 days];
4. American Transit-habitually tardy.
5Countrywide-don't even go there.
And let's not forget on infant's settlements, wrongful deaths, New York State Liquidation Bureau settlements and now Medicare,.....it can take a year and a day to get your money.Of course a structured settlement always causes delays.
So what defendants[carriers] actually pay your settlement within 21 days? Allstate, State Farm, Geico, Progressive and Met. Life; The same carriers who have always paid on time.
So is the statute useful? You be the judge.
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