Nothing in this article shall be construed to limit the right of a plaintiff, defendant or defendants and any insurer to settle property damage, personal injury or wrongful death claims as they consider appropriate and in their complete discretion.
§ 5047.Settlements.
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 5047 makes clear that nothing in Article 50-B limits a plaintiff's or defendant's freedom to settle a personal injury, property damage, or wrongful death claim on whatever terms they consider appropriate.
Full Text of CPLR 5047
Plain-English Summary
Article 50-B governs judgments a court enters on a jury verdict — it has nothing to do with claims the parties resolve themselves. This section says so directly: nothing in the article limits a plaintiff, defendant, or insurer's discretion to settle a personal injury, property damage, or wrongful death claim.
That means the $250,000 threshold, the annuity requirement, and every other mechanism in Article 50-B apply only after a case goes to verdict. A settlement can be a lump sum, a structured payout the parties negotiate on their own terms, or any combination they agree to — the article doesn't reach into that negotiation at all.
Frequently Asked Questions
Does New York require structured settlements when parties settle a case out of court?
No. Article 50-B governs judgments entered on a jury verdict. Section 5047 confirms it doesn't limit how parties choose to settle a claim.
Can a plaintiff and defendant settle a personal injury case for a lump sum in New York?
Yes. Section 5047 preserves complete discretion for the parties to settle property damage, personal injury, or wrongful death claims as they see fit.
Does the $250,000 threshold in CPLR 5041 apply to settlements?
No. That threshold governs how a court structures a judgment after a verdict, not a negotiated settlement.
Why does Article 50-B include a section just about settlements?
To remove any doubt that the periodic-payment scheme built for jury verdicts might be read to reach settlement negotiations as well.
Can an insurer negotiate its own structured settlement outside of Article 50-B's rules?
Yes. Section 5047 leaves insurers, along with plaintiffs and defendants, free to settle on whatever terms they consider appropriate.
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
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