New York Assembly Bill A08706

New York 2025-2026 Regular Session

• Introduced: 6/2/25
• Refer: 6/2/25
• Report Pass: 6/11/25
• Refer: 6/11/25
• Report Pass: 6/12/25

Caption

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.

Summary

A08706, the “Unfair Settlement Timing Act,” would amend New York’s Civil Practice Law and Rules to prohibit a person, firm, or corporation whose interests are adverse to an injured person or the estate of a deceased person from negotiating a contract or settlement that releases liability for a tortious or potentially tortious act within 30 days of the incident. The bill applies to both written and oral agreements, and it covers situations involving personal injury or death arising from the act. If a release, contract, or settlement is obtained in violation of the 30-day restriction, it would be voidable at the option of the person giving up the claim. The bill would take effect immediately upon enactment and would create a new section 5003-c in the CPLR, establishing a statutory cooling-off period before early post-incident settlements can be finalized.

Impact

The bill would add a new limitation on settlement practices in New York tort cases by restricting when adverse parties may negotiate liability releases after an injury-causing or potentially injury-causing event. It would affect defendants, insurers, and other parties seeking early resolution, while giving injured persons or their representatives additional time before being bound by a release. The measure would also create a new statutory remedy by making noncompliant settlements voidable at the injured party’s option.

Sentiment

The available voting history suggests generally favorable support for the bill in committee, with the Assembly Ways and Means Committee voting 24-10 to refer it favorably to Rules and the Assembly Rules Committee voting 20-9 favorably. No committee transcript is available, so the record does not show detailed floor or hearing debate. Overall, the bill appears to have attracted support from members who favor added protections for injured parties and skepticism from members concerned about restricting settlement negotiations.

Contention

The main point of contention is the bill’s restriction on early settlement discussions, which could be viewed as protecting injured people from pressure or hasty waivers, but also as limiting the ability of defendants and insurers to resolve claims quickly. Supporters are likely to emphasize fairness, informed consent, and a cooling-off period after traumatic events. Opponents are likely to argue that the 30-day ban is rigid, may delay resolution, and could increase litigation or administrative costs.