Compromise or settlement of abolished causes of action prohibited
Sec. 7. (a) All contracts and instruments executed after June 10,
1935, within Indiana in payment, satisfaction, settlement, or
compromise of any claim or cause of action abolished or barred by
this chapter, whether the claim or cause of action arose within or
outside Indiana, are declared to be contrary to the public policy of
Indiana and void.
(b) It is unlawful to cause, induce, or procure any person to:
(1) execute a contract or instrument described in subsection (a);
(2) cause, induce, or procure any person to give, pay, transfer,
or deliver any money or thing of value in payment, satisfaction,
settlement, or compromise of a claim or cause of action
described in subsection (a); or
(3) receive, take, or accept any money or thing of value in
payment, satisfaction, settlement, or compromise of a claim or
cause of action described in subsection (a).
(c) It is unlawful to commence or cause to be commenced, either
as litigant or attorney, in any court of Indiana, any proceeding or
action seeking to enforce or recover upon a contract or instrument
described in subsection (a), knowing it to be void, whether the
contract or instrument was executed within or outside Indiana.
(d) This section does not apply to:
(1) the payment, satisfaction, settlement, or compromise of any:
(A) causes of action that are not abolished or barred by this
chapter; or
(B) contracts or instruments executed before June 10, 1935;
or
(2) the bona fide holder in due course of any negotiable
instrument executed after June 10, 1935.
As added by P.L.1-1998, SEC.7.
Last modified: May 24, 2006