State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_1 > GS_1-540_3

§1‑540.3.  Advance payments.

(a)        In any claim,potential civil action or action in which any person claims to have sustainedbodily injuries, advance or partial payment or payments to any such personclaiming to have sustained bodily injuries or to the personal representative ofany person claimed to have sustained fatal injuries may be made to such personor such personal representative by the person or party against whom such claimis made or by the insurance carrier for the person, party, corporation, associationor entity which is or may be liable for such injuries or death. Such advance orpartial payment or payments shall not constitute an admission of liability onthe part of the person, party, corporation, association or entity on whosebehalf the payment or payments are made or by the insurance carrier making thepayments. It shall be incompetent for any party in a civil action  to offerinto evidence, through any witness either by oral testimony or paper writing,the fact of the advance or partial payment or payments made by or on behalf ofthe opposing party. The receipt of the advance or partial payment or paymentsshall not in and of itself  act as a bar, release, accord and satisfaction, ora discharge of any  claims of the person or representative receiving theadvance or partial payment or payments, unless by the terms of a properlyexecuted settlement agreement it is specifically stated that the acceptance ofsaid payment or payments constitutes full settlement of all claims and causesof action for personal injuries or wrongful death, as applicable.

(b)        In any civil actionfor personal injuries or wrongful death the person or party against whom claimis made for such injuries or death and by or on whose behalf advance or partialpayment or payments have been made to the party asserting the claim shall filewith the Court and serve upon opposing counsel a motion setting out the dateand amount of payment or payments and praying that said sums be credited uponany judgment recovered by the opposing party against the party on whose behalfthe payment or payments were made. Prior to the entry of judgment, the trialjudge shall conduct a hearing and may consider affidavits, oral testimony,depositions, and any other competent evidence, and shall enter his findings offact and conclusions of law as to whether the advance or partial payment orpayments were made by or on behalf of the person or party claiming to have madesuch payment(s) to the party asserting the claim for injuries or wrongfuldeath. Upon a finding that the advance or partial payment or payments were madeby or on behalf of the person or party claiming to have made such payment(s),all such payments shall be credited by the trial judge upon any judgmentrendered in favor of the person or representative who received the payment orpayments. Advance payments made by one joint tort‑feasor shall not inureto the benefit or credit of any joint tort‑feasor not making suchpayments.

No claim for reimbursement maybe made or allowed by or on behalf of the person or party making such advancepayment or payments against the person or party to whom such payment orpayments are made except a claim based on fraud.

The making of any advancepayment shall not affect in any way whatsoever the running of the statute oflimitations. (1971, c. 854.)