Sec. 52-195c. Time period for payment of settlement amount.
Sec. 52-195c. Time period for payment of settlement amount. (a) When an action to recover damages has been settled, any settling defendant shall tender all sums
due from such settling defendant to any settling plaintiff or such plaintiff's agent not
later than thirty days after receipt by the person or office designated in writing to the
settling plaintiff or such plaintiff's agent by the settling defendant at the time of settlement of a duly executed release and a withdrawal discontinuing any court action, if any
such action is pending, that are tendered by such settling plaintiff or plaintiff's agent
and are executed by or on behalf of the settling plaintiff. If no such person or office is
so designated, a settling plaintiff may tender such settlement documents to the settling
defendant's attorney or the representative of the settling defendant's insurer with whom
the settlement agreement was reached and such settling defendant shall tender all sums
due from such settling defendant to any settling plaintiff or such plaintiff's agent not later
than thirty days after receipt of such settlement documents by the settling defendant's
attorney or the representative of the settling defendant's insurer.
(b) In an action that requires judicial approval of the settlement, the plaintiff shall
also tender a copy of the order of the Probate Court or other order approving such
settlement with the duly executed release and withdrawal discontinuing any pending
court action executed on behalf of the plaintiff.
(c) In the event that a settling defendant or insurer fails to promptly tender all sums
as required by subsection (a) of this section, a default judgment shall be entered by the
court on behalf of any unpaid plaintiff against such defendant twenty days after such
plaintiff files a motion for a default judgment with the court and serves such motion
upon the representative of the insurer with whom the settlement was reached or the
defendant with whom the settlement was reached. Such motion shall be accompanied
by an affidavit executed by the plaintiff or the plaintiff's attorney setting forth the terms
of such settlement with supporting documentation attached.
(d) Any insurer or defendant with whom the settlement was reached that fails to
tender settlement proceeds within the time limit set forth in this section shall be liable
for interest at a rate of twelve per cent a year on the amount of such settlement proceeds
computed from the date such time limit expired.
(e) As used in this section, "tender" means either to personally deliver or cause to
be delivered or to mail by registered or certified mail, return receipt requested. An insurer
or a defendant may otherwise prove tender by presenting evidence that the settlement
sums due from such insurer or such defendant were received by the settling plaintiff or
such plaintiff's agent.
(P.A. 97-58, S. 3.)