In order to determine what judgment is to be entered on a verdict in an action to recover damages for personal injury, injury to property or wrongful death under this article, and not subject to article fifty-A of this chapter, the court shall proceed as follows:
§ 5041.Basis for determining judgment to be entered.
Article 50-B. Periodic Payment of Judgments in Personal Injury, Injury to Property and Wrongful Death Actions · Last amended 1986 · Last verified July 21, 2026
In one sentenceCPLR 5041 tells the court how to turn a jury verdict into a judgment in personal injury, property damage, and wrongful death cases: past damages and the first $250,000 of future damages come as a lump sum, and future damages above that line convert to a court-ordered annuity.
Full Text of CPLR 5041
(a) The court shall apply to the findings of past and future damages any applicable rules of law, including set-offs, credits, comparative negligence pursuant to section fourteen hundred eleven of this chapter, additurs, and remittiturs, in calculating the respective amounts of past and future damages claimants are entitled to recover and defendants are obligated to pay.
(b) The court shall enter judgment in lump sum for past damages, for future damages not in excess of two hundred fifty thousand dollars, and for any damages, fees or costs payable in lump sum or otherwise under subdivisions (c) and (d) of this section. For the purposes of this section, any lump sum payment of a portion of future damages shall be deemed to include the elements of future damages in the same proportion as such elements comprise of the total award for future damages as determined by the trier of fact.
(c) Payment of litigation expenses and that portion of the attorney’s fees related to past damages shall be payable in a lump sum. Payment of that portion of the attorney’s fees related to future damages for which, pursuant to this article, the claimant is entitled to a lump sum payment shall also be payable in a lump sum. Payment of that portion of the attorney’s fees related to the future periodically paid damages shall also be payable in a lump sum, based on the present value of the annuity contract purchased to provide payment of such future periodically paid damages pursuant to subdivision (e) of this section.
(d) Upon election of a subrogee or a lien holder, including an employer or insurer who provides workers’ compensation, filed within the time permitted by rule of court, any part of future damages allocable to reimbursement of payments previously made by the subrogee or the lien holder shall be paid in lump sum to the subrogee or the lien holder in such amount as is calculable and determinable under the law in effect at the time of such payment.
(e) With respect to awards of future damages in excess of two hundred fifty thousand dollars in an action to recover damages for personal injury, injury to property or wrongful death, the court shall enter judgment as follows:
After making any adjustment prescribed by subdivisions (b), (c) and (d) of this section, the court shall enter a judgment for the amount of the present value of an annuity contract that will provide for the payment of the remaining amounts of future damages in periodic installments. The present value of such contract shall be determined in accordance with generally accepted actuarial practices by applying the discount rate in effect at the time of the award to the full amount of the remaining future damages, as calculated pursuant to this subdivision. The period of time over which such periodic payments shall be made and the period of time used to calculate the present value of the annuity contract shall be the period of years determined by the trier of fact in arriving at the itemized verdict; provided, however, that the period of time over which such periodic payments shall be made and the period of time used to calculate the present value for damages attributable to pain and suffering shall be ten years or the period of time determined by the trier of fact, whichever is less. The court, as part of its judgment, shall direct that the defendants and their insurance carriers shall be required to offer and to guarantee the purchase and payment of such an annuity contract. Such annuity contract shall provide for the payment of the annual payments of such remaining future damages over the period of time determined pursuant to this subdivision. The annual payment for the first year shall be calculated by dividing the remaining amount of future damages by the number of years over which such payments shall be made and the payment due in each succeeding year shall be computed by adding four percent to the previous year’s payment. Where payment of a portion of the future damages terminates in accordance with the provisions of this article, the four percent added payment shall be based only upon that portion of the damages that remains subject to continued payment. Unless otherwise agreed, the annual sum so arrived at shall be paid in equal monthly installments and in advance.
(f) With the consent of the claimant and any party liable, in whole or in part, for the judgment, the court shall enter judgment for the amount found for future damages attributable to said party as such are determinable without regard to the provisions of this article.
Plain-English Summary
Once a jury returns an itemized verdict in a covered personal injury, property damage, or wrongful death case, the court still has work to do before it can enter judgment. Article 50-A handles medical malpractice separately; this section covers everything else. The court first applies the legal adjustments the verdict needs — set-offs, comparative negligence under CPLR 1411, additurs, and remittiturs — to arrive at final past and future damage figures.
Past damages, litigation costs, and the first $250,000 of future damages all get paid in one lump sum, along with the attorney's fees tied to those amounts. Future damages above $250,000 don't come as cash on the barrelhead. The court instead enters judgment for the present value of an annuity that will pay out the remainder over time, using the number of years the jury found (capped at ten years for pain and suffering) and a built-in four percent annual increase. The defendant and its insurer must guarantee that annuity.
None of this locks the parties in. Subdivision (f) lets the claimant and any liable party agree to skip the periodic-payment mechanism and take a straight lump sum instead. The rest of Article 50-B — security requirements, what happens on default, what happens if the claimant dies — builds on the split this section creates.
Frequently Asked Questions
How does periodic payment of a personal injury judgment work in New York?
The court pays past damages and the first $250,000 of future damages in a lump sum. Future damages above that amount convert to an annuity that pays out over a period of years the jury found, with a four percent annual increase.
Does CPLR 5041 cap how much a plaintiff can recover?
No. It doesn't reduce the jury's award — it only changes how future damages above $250,000 get paid out, converting them into an annuity-funded stream instead of a single check.
Can the parties agree to a lump sum instead of periodic payments?
Yes. Subdivision (f) lets the claimant and any party liable for the judgment agree to a lump sum for future damages instead of following the periodic-payment formula.
How long does the annuity pay out damages for pain and suffering?
Ten years, or the period the jury found for future damages, whichever is shorter. Other categories of future damages follow the period the jury found.
Does CPLR 5041 apply to medical malpractice verdicts?
No. Medical malpractice verdicts follow the parallel periodic-payment scheme in Article 50-A. Article 50-B covers personal injury, property damage, and wrongful death cases instead.
Who pays the attorney's fees on the periodically paid portion of a verdict?
The fees still come out in a lump sum. The court calculates that fee based on the present value of the annuity contract that funds the future periodic payments.
Amendment History
Add, L 1986, ch 682, § 9, eff July 30, 1986.
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: New York periodic payment personal injury judgmentstructured judgment New Yorkfuture damages annuity CPLR$250,000 threshold future damages NYperiodic payment article 50-Bstructured settlement judgment law NY