Periodic payment statutes allow a court to order future damages paid in installments, frequently with security requirements and provisions terminating payments on death.
They apply principally to medical malpractice judgments.
Alternative Names:
Periodic Payment, Structured Judgment Statute
Why it Matters?
Termination on death is the provision that most affects exposure, since a large future care award for a claimant with limited life expectancy ends rather than being paid in full to an estate. That makes periodic payment substantially more favorable to defendants than a lump sum for the same nominal amount. Invoking the statute requires a timely request, and the security or annuity requirements need planning before judgment.
Frequently Confused with
Related terms
Frequently asked questions
Why do periodic payments favor defendants?
What planning does the statute require?
