§ 74.504.Release
Title 4. Liability in Tort · Chapter 74. Medical Liability · Subchapter K. Payment for Future Losses · Last amended 2003 · Last verified August 29, 2026
Full Text of § 74.504
Plain-English Summary
One sentence with a substantial effect: entry of an order for the payment of future damages by periodic payments constitutes a release of the health care liability claim filed by the claimant.
The claim is released — extinguished — and replaced by the judgment's payment obligation. The claimant's rights from that point forward run on the judgment, not on the underlying claim.
The practical importance is finality for the defendant. An obligation running for decades would be intolerable if the claim itself remained live alongside it, capable of being revisited as circumstances changed.
The claimant is not left unprotected, and the neighbouring sections are why. The court must require evidence of financial responsibility from a defendant who is not adequately insured, and the judgment must be funded by an annuity, a United States obligation, collectible liability insurance, or another approved form.
So the release is given against a secured payment stream rather than a bare promise. The security stands behind the obligation until it ends, and reverts to the defendant only when the payments are satisfied or terminated.
Frequently Asked Questions
What happens to my claim if periodic payments are ordered?
Entry of the order constitutes a release of the health care liability claim. Your rights then run on the judgment's payment obligation.
Is the payment stream secured?
Yes. The court must require evidence of financial responsibility from a defendant who is not adequately insured, and the judgment must be funded by an annuity, a United States obligation, collectible insurance, or another approved form.
Why is the claim released?
To give the defendant finality on an obligation that may run for decades.
Amendment History
- Added by Acts 2003, 78th Leg., ch. 204, Sec. 10.01, eff. Sept. 1, 2003.