Prohibits certain entities from negotiating any contracts or settlements releasing such entities from liability for a tortious or potentially tortious act…

Official titleShow

Prohibits certain entities from negotiating any contracts or settlements releasing such entities from liability for a tortious or potentially tortious act within thirty days of such act

The heading above is this same sentence with its legal opening removed. No words were added, changed or reordered.

Latest action Dec 19, 2025

Prohibits persons, firms, or corporations whose interests are adverse to that of a person who received personal injuries or death as a result of an action by such person, firm or corporation from negotiating any contracts or settlements releasing such person, firm or corporation from liability for the tortious or potentially tortious act within thirty days of such act.

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Where it stands

Rejected by the executive.

Introduced
In committee
Up for a vote
Passed one chamber
Passed
Enacted

Vetoed

New York State Senate

Same as A8706, the matching bill in the Assembly.

Committee

Codes · New York State Assembly

Also referred to Codes · New York State Senate, Judiciary · New York State Assembly, Judiciary · New York State Senate, Ways and Means · New York State Assembly.

Purpose, from the sponsor's memo

Section one of this bill states the title of this bill is the "Unfair Settlement Timing Act" (USTA). Section two amends the Civil Practice Law and Rules (CPLR) by adding a new section 5003-c stating that no person, firm or corporation whose interest is adverse to that of a person receiving personal injuries or death as a result of a tortious or potentially tortious act may negoti- ate any contract, written or oral, or any settlement to release such person, firm or corporation from liability, within thirty days from the date of the tortious or potentially tortious act. The new CPLR section 5003-c also provides that any contract, settlement or release obtained in violation of this paragraph shall be voidable at the option of the releaser. Section three sets the effective date.

Filed with the bill. Read it on nysenate.gov (opens in a new tab)

Recorded votes

Vote: Floor vote
NY SenateJun 11, 2025Result: passed
(56) (3) (0) (4)
Vote: Committee vote · Judiciary
Senate JudiciaryMay 28, 2025Result: passed
(16) (1) (0) (2)

Cosponsors

Patrick M. Gallivan

Republican1

Patrick M. Gallivan

See the full list on nysenate.gov

The sponsor's argument

Why Julia Salazar says this is needed

This bill addresses the unfair situation where defense and insurance lawyers rush to contact and pressure a tort victim to settle a potential civil action in the immediate wake of an accident or civil offense. Such victims may not have had the time to understand the nature and extent of physical injuries that they sustained and will not have had adequate time to contemplate hiring an attorney and then actually hiring one. Indeed, the reason tortfeasors or insurers -- who are represented through counsel -- rush to immediately contact a victim after an acci- dent or tort, and rush to immediately draft and negotiate a settlement, is specifically to prevent the victim from (1) understanding the true nature of their injuries and/or (2) acquiring counsel that can negotiate a fair and adequate settlement. The result of this high-pressure tactic is too often as follows; victims, in the immediate wake of an injury, are pressured to accept a low-ball settlement. Later, some of these victims seek out an attorney, who, because of that settlement, is incapable of filing an action to obtain the compensation that the victims and their families not only deserve but need for medical care. The bill addresses this unfair tactic by preventing settlement negoti- ations during a 30-day period after an accident or other tortious or potentially tortious act and giving the victim the option to void an unfair settlement that is negotiated and entered into in violation of this ban. The fairness of giving a tort victim a month before he or she can be pressured to sign a settlement is reflected in the practice of other states, including Connecticut and Virginia. Indeed, Virginia imposed a similar 30-day timeline 25 years ago. See Va. Code Ann. 8.01-425 (30-day period); see also Conn. Gen. Stat. 52-572a. (15-day period). High-pres- sure settlement negotiations within 30 days of an injury or other wrong- doing that result in inadequate and unfair settlements should not be allowed.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.

Full history

Dec 19, 2025
Vetoed
VETOED MEMO.160
NY Senate
Dec 8, 2025
Sent to the executive
DELIVERED TO GOVERNOR
NY Senate
Jun 17, 2025
Passed a chamber
PASSED ASSEMBLY
NY Assembly
Jun 17, 2025
Returned to Senate
RETURNED TO SENATE
NY Assembly
Jun 13, 2025
Ordered to Third Reading Rules CAL.690
ORDERED TO THIRD READING RULES CAL.690
NY Assembly

Show full history (13 earlier events)

Jun 13, 2025
Substituted
SUBSTITUTED FOR A8706
NY Assembly
Jun 12, 2025
Reported out of committee
REPORTED
NY Assembly
Jun 12, 2025
Rules Report CAL.690
RULES REPORT CAL.690
NY Assembly
Jun 11, 2025
Sent to the executive
DELIVERED TO ASSEMBLY
NY Senate
Jun 11, 2025
Passed a chamber
PASSED SENATE
NY Senate
Jun 11, 2025
Referred to committee
REFERRED TO WAYS AND MEANS
NY Assembly
Jun 11, 2025
Reported out of committee
REPORTED REFERRED TO RULES
NY Assembly
Jun 10, 2025
Reference Changed to Ways and Means
REFERENCE CHANGED TO WAYS AND MEANS
NY Assembly
Jun 4, 2025
Advanced to Third Reading
ADVANCED TO THIRD READING
NY Senate
Jun 2, 2025
Referred to committee
REFERRED TO CODES
NY Assembly
May 29, 2025
2ND Report CAL.
2ND REPORT CAL.
NY Senate
May 28, 2025
1ST Report CAL.1425
1ST REPORT CAL.1425
NY Senate
May 19, 2025
Referred to committee
REFERRED TO JUDICIARY
NY Senate

About this record

Summary: The summary comes from NY Open Legislation, the New York State Senate's public record. For more, see How we handle summaries.
Cosponsors: The list shows the cosponsors who are on Agora, A to Z. The official record may list more.
Party colors: Parties are shown in the same neutral colors.
Source: From NY Open Legislation, the NY Senate and Assembly, and official rosters. This record was last updated Oct 22, 2026. About our data

Read the record

Read on NY Senate (opens in a new tab) The official record on nysenate.gov.

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