Requires stipulations of settlement to only state that the parties agreed to settle; there shall be no requirement to state the terms of the settlement.
Ayes (56): Adams, Addabbo, Alesi, Avella, Ball, Bonacic, Breslin, Carlucci, DeFrancisco, Dilan, Espaillat, Farley, Flanagan, Fuschillo, Gallivan, Gianaris, Golden, Griffo, Grisanti, Hannon, Hassell-Thomps, Huntley, Kennedy, Klein, Lanza, Larkin, LaValle, Libous, Little, Marcellino, Martins, Maziarz, McDonald, Montgomery, Nozzolio, O'Mara, Oppenheimer, Parker, Peralta, Perkins, Ranzenhofer, Ritchie, Robach, Saland, Sampson, Savino, Serrano, Seward, Skelos, Smith, Squadron, Stavisky, Stewart-Cousin, Valesky, Young, Zeldin
Nays (3): Duane, Krueger, Rivera
Excused (2): Diaz, Johnson
TITLE OF BILL: An act to amend the civil practice law and rules, in relation to stipulation of settlement
PURPOSE: To make a technical correction to provisions of Chapter 62 of the Laws of 2003, in relation to Rule 2104 of the Civil Practice Law and Rules, in order to maintain the privacy of terms between two settling parties.
JUSTIFICATION: Section 28 was added to the 2003 budget in an effort to increase revenue for the judiciary. The filing of a stipulation of settlement, however, has the potential for the unintended consequence of making settlement agreements public. Often parties in the middle of litigation come to an agreement prior to trial in order to avoid making public a verdict or court opinion. The fact that the terms of a settlement may not be divulged in a court document is often an impetus for settlement. To require patties to file a stipulation agreement, setting forth the terms of the stipulation, frustrates a fundamental purpose of settling, which is to maintain the confidentiality of the terms themselves. While maintaining the fee, this bill clarifies Rule 2104 by requiring only a notification be given to the clerk that a settlement has been reached; Patties shall not be required to submit the terms of the settlement.
LEGISLATIVE HISTORY: 2007/2008 - S.4944; 2005/2006 - S.750; 2003/2004 - S.7061
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: This bill shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 3676 2011-2012 Regular Sessions IN SENATE March 2, 2011 ___________Introduced by Sen. HANNON -- read twice and ordered printed, and when printed to be committed to the Committee on Codes AN ACT to amend the civil practice law and rules, in relation to stipu- lation of settlement THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Rule 2104 of the civil practice law and rules, as amended by section 28 of part J of chapter 62 of the laws of 2003, is amended to read as follows: Rule 2104. Stipulations. An agreement between parties or their attor- neys relating to any matter in an action, other than one made between counsel in open court, is not binding upon a party unless it is in a writing subscribed by him OR HER, or his OR HER attorney or reduced to the form of an order and entered. With respect to stipulations of settlement
[and notwithstanding the form of the stipulation of settle- ment, the terms of such stipulation shall be filed by], the defendant SHALL FILE THE STIPULATIONS OF SETTLEMENT with the county clerk. THE STIPULATIONS OF SETTLEMENT SHALL ONLY BE REQUIRED TO PROVIDE THE PARTIES' AGREEMENT TO SETTLE. THE PARTIES SHALL NOT BE REQUIRED TO SUBMIT THE TERMS OF SETTLEMENT. S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD09771-01-1