(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.
§ 5003-a.Prompt payment following settlement.
Article 50. Judgments Generally · Last amended 1992 · Last verified July 21, 2026
In one sentenceCPLR 5003-a sets firm deadlines, twenty-one days for most defendants and ninety days for municipal or state defendants, for a settling defendant to pay a settling plaintiff after receiving an executed release, and lets the plaintiff enter judgment with interest if payment doesn't come on time.
Full Text of CPLR 5003-a
(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.
Plain-English Summary
Settling a case is supposed to end the dispute, not start a new one over when the check arrives. CPLR 5003-a sets concrete payment deadlines so a plaintiff who has signed a release isn't left waiting indefinitely for the money the settlement promised. For most defendants, the clock is short: payment is due within twenty-one days after the plaintiff tenders a duly executed release and stipulation discontinuing the action.
Government defendants get more time because their payment processes run through budget offices, comptrollers, and layers of approval that private defendants don't have. A municipality or subdivision gets ninety days from tender of the release. The state, a state officer or employee entitled to indemnification, or a state-indemnified public benefit corporation gets ninety days running from the comptroller's determination that all the paperwork needed to complete the settlement has been received - a later trigger date that accounts for the additional review those settlements require. Notably, the statute carves insurance carriers for these government defendants out of the extended timeline: a carrier insuring a municipality or the state still has to pay within the standard twenty-one days under subdivision (a).
When a settlement requires judicial approval, such as a settlement on behalf of a minor or incapacitated party, the plaintiff has to tender a copy of the approval order along with the release and stipulation. And when a settling defendant misses the deadline entirely, CPLR 5003-a gives the plaintiff a direct remedy: judgment can be entered without further notice, for the amount stated in the release plus costs, disbursements, and interest running from the date the release was tendered. That interest exposure gives defendants a real incentive to process settlement payments promptly rather than let them drift.
The section doesn't cover everything money-related in a settlement. It exempts settlements governed by article 74 of the insurance law and future installment payments under a structured settlement agreement, since those follow their own payment schedules. And it defines tender narrowly - personal delivery or registered or certified mail with return receipt requested - so there's a fixed, provable moment the clock starts.
Frequently Asked Questions
How long does a defendant have to pay a settlement in New York?
Most settling defendants must pay within twenty-one days of the plaintiff tendering an executed release and stipulation discontinuing the action, under CPLR 5003-a(a).
What if the settling defendant is a city or town?
A municipality or subdivision gets ninety days from tender of the release to pay, though its insurance carrier still must pay within the standard twenty-one days.
What if the settling defendant is New York State itself?
The state, or a state officer or employee entitled to indemnification, has ninety days from the comptroller's determination that all papers needed to complete the settlement have been received.
What happens if the defendant doesn't pay the settlement on time?
The plaintiff may enter judgment without further notice for the amount in the release, plus costs, disbursements, and interest running from the date the release was tendered.
What counts as valid tender of a release under CPLR 5003-a?
Tender means either personal delivery of the release and stipulation or mailing them by registered or certified mail, return receipt requested.
Does CPLR 5003-a apply to structured settlements?
No. The section expressly excludes future installment payments made under a structured settlement agreement, along with settlements governed by article 74 of the insurance law.
Amendment History
Add, L 1992, ch 269, § 1, eff June 30, 1992, deemed eff July 1, 1992; amd, L 1992, ch 270, § 1, eff June 30, 1992, deemed eff July 1, 1992.
Source & verification. Provision text, History, and Advisory
Committee Notes are reproduced verbatim from the Consolidated Laws of New York.
Last verified July 21, 2026.
· Official source
Also known as: settlement payment deadline New Yorkhow long to pay a settlement NYprompt payment following settlement New Yorksettlement check delay lawsuit NY