Rule *229.1 - Sanctions for Failure to Deliver Settlement Funds(A) The following definitions shall apply: "Released Party." A party released from a claim or claims of liability by a release executed pursuant to an agreement of settlement.
"Releasing Party." A party who, by execution of a release pursuant to an agreement of settlement, has agreed to forego a claim or claims of liability against a Released Party.
"Settlement Funds." Payment, by a Released Party in any form of monetary exchange, to a Releasing Party pursuant to an agreement of settlement.
(B) The provisions of this rule shall not apply to the annuity or future installment portion of a structured settlement agreement.(C) The Releasing Party and Released Party may agree in writing to modify or waive any of the provisions of this rule.(D) A Released Party shall have twenty (20) calendar days from receipt of an executed release within which to deliver the settlement funds to the Releasing Party or its counsel.(E) If settlement funds are not delivered to the Releasing Party within the aforesaid twenty (20)-day period, the Releasing Party may:(1) invalidate the settlement; or(2) file an affidavit with Motion Court attesting to non-payment. Such affidavit shall be accompanied by (a) the form of Order specified in paragraph (G) below, (b) a copy of any document evidencing the terms of the settlement agreement, (c) a copy of the executed release, and (d) a copy of a receipt reflecting delivery of the executed release more than twenty (20) days prior to the date of filing of the affidavit. The attorney shall certify to the Court the applicable interest rate and shall certify that the affidavit and accompanying documents have been served on all interested counsel.(F) Upon receipt of the attorney affidavit and supporting documentation required by paragraph (E)(2) above, the Released Party shall have twenty (20) days to file a response. If the Court finds that the Released Party has violated this rule and that there is no material dispute as to the terms of the settlement or the terms of the release, the Court shall impose sanctions in the form of interest calculated as set forth below together with reasonable attorneys' fees incurred in the preparation of the affidavit. Interest shall be calculated at the rate equal to the prime rate as listed in the first edition of the Wall Street Journal published for the calendar year preceding the date on which the settlement funds were payable, plus one percent, not compounded, calculated from the twenty-first day after the date of the settlement to the date of delivery of the settlement funds.(G) The affidavit shall be accompanied by an Order in substantially the following form:ORDER
AND NOW, this ____ day of __________________ , 20____, upon consideration of the affidavit of (Releasing Party's attorney) counsel for (Releasing Party), and the exhibits thereto, and upon a finding that payment was not made within twenty days of receipt of the executed release in the above-captioned action, it is hereby ORDERED and DECREED that in addition to the settlement funds of $(settlement amount), (Released Party) is ordered to pay forthwith simple interest thereon at the rate of (interest rate as determined in accordance with subsection (F) ) on $(settlement amount) from (21st day) to the date of delivery of the settlement funds, together with $(attorneys' fees) in attorneys' fees, pursuant to Philadelphia Civil Rule 229.1.
Former Rule 172; adopted by the Board of Judges, originally General Court Regulation 85-7, effective 7/22/1985. Amended May 19, 2003, effective 7/1/2003. Amended May 19, 2005, effective 8/22/2005.