MD HB526

Settling defendants in tort cases must provide a proposed release to plaintiffs within 10 days of reaching a settlement agreement and pay all sums due within 15 days of receiving the executed release or court approval

Applies only to tort claims for money damages; excludes individuals paying settlements with personal assets

Plaintiffs with known third-party claims (attorney's liens, health care provider liens, Medicare/Medicaid/insurance subrogation rights) may protect those interests by providing signed releases, IOLTA hold letters, or other agreed documentation

Settlement amounts accrue interest at the legal judgment rate if defendants fail to meet the 10-day release or 15-day payment deadlines; parties may agree to a different rate but cannot waive interest entirely

Takes effect October 1, 2026, and applies prospectively only to settlements ratified after that date