Civil Actions - Settlement Agreements - Payment and Release

HB 526 requires defendants in tort cases (like car accidents or personal injury claims) to provide a settlement release draft to plaintiffs within 10 days of agreeing to pay and to pay the full settlement amount within 15 days after the plaintiff provides the signed release or court approval. It also mandates that plaintiffs protect third-party claims (such as medical bills or attorney liens) by submitting specific documentation, like lien releases or letters holding funds in an attorney trust account. If defendants miss these deadlines, interest accrues on the settlement amount at the legal judgment rate from the agreement date until payment. The law applies only to future settlements starting October 1, 2026, and excludes personal asset payments.