Settlement and Alternative Dispute Resolution (ADR)

• Author: Michael Barr/Sharon Gerstman/Burton Lipshie
• Pages: 1425-1488

40-1

CHAPTER 40

SETTLEMENT AND ALTERNATIVE

DISPUTE RESOLUTION (ADR)

QUICK VIEW

Σχοπε οφ Χηαπτερ:

Σεττλεµεντ. How to evaluate a case for settlement. How to negotiate towards settlement (both from a plainti’s

perspective and from an insurer’s perspective). Oers of compromise. The role of courts in settlements. The

mechanics of settlements. The enforceability of settlements.

Αλτερνατιϖε ∆ισπυτε Ρεσολυτιον. Mediation and arbitration, including both court initiated (non-voluntary) arbitration

ανδ χοντραχτυαλ αρβιτρατιον.

Στρατεγιεσ ανδ Ταχτιχσ:

Σεττλεµεντ. The settlement process is integral to the practice of law since most cases by far are settled. Prepare

σεττλεµεντ ωιτη χαρε, ανδ µαινταιν αν αωαρενεσσ οφ ωηατ ωιλλ βε χονϖινχινγ το τηε οτηερ σιδε.

Αλτερνατιϖε ∆ισπυτε Ρεσολυτιον. Mediation and arbitration provide increasingly popular alternatives to the choice of

trial or settlement through negotiations by the parties. Parties in contractual relationships may include provisions

φορ µεδιατιον ορ αρβιτρατιον οφ δισπυτεσ ιν τηειρ χοντραχτσ, βυτ εϖεν ωιτηουτ α πριορ χοντραχτυαλ ρεθυιρεµεντ, παρτιεσ

may choose mediation or arbitration at any time.

Στατυτεσ ανδ Ρυλεσ:

Σεττλεµεντ. CPLR 908, 1207, 1208, 2104, 3219, 3220, 3221,4533-b, 4547, 5003-a; EPTL 5-4, 7-1.12; Gen Oblig

L 15-108; 22 NYCRR §§603.7, 691.20, 1022.2, 1022.3.

Αλτερνατιϖε ∆ισπυτε Ρεσολυτιον. CPLR Article 75; 22 NYCRR §28.1 et seq.

Ρελατεδ Τοπιχσ: Taking the Case, Ch 1; Presuit Activities, Ch 2; Parties, Ch 14; Defaults and Dismissals, Ch 39.

Φορµσ: Σεε διγιταλ αχχεσσ φορ τηε φολλοωινγ φορµσ:

• Form 40:10, Petition for Order of Compromise (Infant’s Claim).

• Form 40:20, Adavit in Support of Application to Compromise Infant’s Claim.

• Form 40:30, Order of Compromise (Infant’s Claim).

• Form 40:40, Adavit Authorizing Execution of Settlement Check.

• Form 40:50, Settlement Agreement.

• Form 40:60, Stipulation for Discontinuance After Settlement.

New York Civil Practice Before Trial 40-2

 

 

 

TABLE OF CONTENTS

Ι. ΣΕΤΤΛΕΜΕΝΤ

Α. Χασε Εϖαλυατιον

1. Ωηψ Τρψ Το Σεττλε?

 

 

 

 

2. Ωηεν Σηουλδ Ψου Σεττλε?

 

 

 

3. Ταξ Χονσεθυενχεσ

 

 

 

 

 

 

 

 

5. Ιµπαχτ ον Υνδερινσυρανχε Χοϖεραγε

 

 

6. Λιενσ

 

 

 

 

 

 

7. Ετηιχαλ Ρεσπονσιβιλιτιεσ

 

 

 

 

 

 

Β. Νεγοτιατιον

1. Γενεραλ Ποιντσ

 

 

 

 

 

 

α. Σεττλεµεντ Λεττερσ

 

40-3 Settlement and Alternative Dispute Resolution (ADR)

§40:81 Liability Statement

§40:82 Documentation of Liability

§40:83 Documentation of Damages

§40:84 Demand Statement

§40:85 Set a Time Limit

β. Νεγοτιατιονσ Ωιτη Ινσυρερσ

§40:90 Know the Motivating Factors

§40:91 Reserves

§40:92 High Balling and Low Balling

§40:93 Learn the Policy Limits

χ. Νεγοτιατιονσ Ωιτη Τηιρδ Παρτιεσ

§40:100 Underinsured Motorist Coverage

§40:101 Lienholders

3. Insurer’sPerspective

§40:110 Attorney’s Duties

§40:111 Insurer’s Duties

§40:112 Rights of Third Parties

§40:113 Bad Faith Actions

§40:114 Damages for Bad Faith

§40:115 Duty to Defend

C. SpecialOers

1. Τενδερ

§40:120 Purpose

§40:121 Applicability: Contract Actions

§40:122 Procedure

2. OerToLiquidateDamages

§40:130 Purpose

§40:131 Applicability: Contract Actions

§40:132 Procedure

3. OerToCompromise

§40:140 Purpose

§40:141 Applicability: Most Actions

§40:142 Procedure

D. Court’sRoleinSettlements

1. Σεττλεµεντσ Ρεθυιρινγ Χουρτ Αππροϖαλ

α. Μινορσ ορ Ινχοµπετεντσ

§40:150 Settlement Unenforceable Without Court Approval

§40:151 Appointment of Guardian ad Litem

§40:152 Procedure to Obtain Approval

§40:153 Representation

§40:154 Moving Papers

§40:155 Court Hearing

§40:156 Orders

b. DeathActions

§40:170 Jurisdiction for Wrongful Death Actions

§40:171 Appointment of a Guardian ad Litem

§40:172 Petition and Supporting Papers

§40:173 Approval of Settlements

§40:174 Need to Allocate Settlement Proceeds

§40:175 Distribution of Proceeds

χ. Οτηερ Οχχασιονσ φορ Σεεκινγ Χουρτ Αππροϖαλ

§40:180 Class Actions

§40:181 Shareholders’ Derivative Actions