Requires stipulations of settlement to only state that the parties agreed to settle, not need to state the terms of the settlement

BILL NUMBER:S3897

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 parties 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; Parties shall not be required to submit the terms of the settlement.

Legislative history

2011/2012: S.3676 2007/2008 - S.4944 2005/2006 - S.750 2003/2004 - S.7061

Fiscal implications

None.

Effective date

This bill shall take effect immediately.