Understanding the Uniform Periodic Payment of Judgments Act: Key Insights

Definition & Meaning

The Uniform Periodic Payment of Judgments Act (UPPJA) is a law established in 1990 that allows for judgments related to future damages in tort cases, particularly those involving bodily injury, to be paid in regular installments instead of a single lump sum. This act is designed to ensure that individuals who suffer injuries receive ongoing financial support while also managing the costs associated with these payments. The act sets specific criteria and procedures for establishing these periodic payments, including adjustments for inflation.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A person who suffers a severe injury in a car accident may receive a judgment of $500,000 for future medical expenses and lost wages. Instead of receiving the full amount at once, they could opt for periodic payments that provide them with a structured income over several years to cover ongoing medical treatment.

Example 2: An individual injured in a workplace accident is awarded a judgment that includes future care costs. They choose periodic payments to ensure they have funds available for rehabilitation and other long-term needs. (hypothetical example)

State-by-state differences

State Key Differences
California Allows for periodic payments but has specific rules regarding the calculation of future damages.
Texas Has adopted the UPPJA but includes additional requirements for establishing periodic payments.
New York Follows the UPPJA with slight variations in the inflation adjustment process.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

What to do if this term applies to you

If you are involved in a personal injury case and believe that periodic payments may be beneficial, consider the following steps:

  • Consult with a legal professional to understand your options and the implications of choosing periodic payments.
  • Gather documentation of your damages and future needs to support your petition for periodic payments.
  • Explore US Legal Forms for templates that can assist you in filing the necessary paperwork.

For complex situations, seeking professional legal help is advisable to ensure your rights are protected.

Quick facts

  • Typical threshold for periodic payments: $100,000 in future damages.
  • Judgments can be structured over multiple years.
  • Inflation adjustments are included in the payment plan.
  • Attorney's fees are deducted from future non-economic damages.

Key takeaways

Frequently asked questions

It is a law that allows for judgments in tort cases to be paid in periodic installments rather than a lump sum.