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Defective Release Did Not Trigger 90-Day Clock for Payment of Settlement Amount

The Second Department determined that a release that was defective because it excluded subrogation claims did not start the 90-day clock, pursuant to CPLR 5003-a(e), for payment of the settlement amount:

Here, contrary to the plaintiff’s contention, the general release provided by the plaintiff was defective, since it expressly excluded potential subrogation claims against the defendant. Therefore, it was insufficient to trigger the 90-day period within which the defendant was required to make payment of the settlement amount, and, accordingly, the plaintiff was not entitled to seek a judgment based on nonpayment under CPLR 5003-a(e)… . Pitt v New York City Hous Auth, 2013 NY Slip Op 03311, 2nd Dept, 5-8-13

 

 

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