New Rule Sets Timeline for Settlement Delivery

The Supreme Court of Pennsylvania has adopted a new Rule 229.1 of the Pennsylvania Rules of Civil Procedure, which requires that defendants released of liability in settlement agreements must deliver any settlement funds due to the plaintiff within twenty (20) days of receipt of an executed release. Certain remedies are provided the plaintiff if settlement funds are not timely delivered, including the options to void the settlement or petition the court for sanctions and interest. The parties can agree not to be bound by the timeline created by the rule.

The text of the new Rule 229.1 is available online here. The order adopting the rule is here. The rule was published in the Pennsylvania Bulletin on June 19, 2004, and takes effect July 1, 2004.