Providence Local News

 

Assembly urged to pass 38 Studios settlement bill

Assembly urged to pass 38 Studios settlement bill

PROVIDENCE, R.I. (AP) — The lawyer for the Rhode Island economic development agency that's suing Curt Schilling over his video game company's collapse says passing legislation encouraging out-of-court settlements will help maximize any potential financial recovery.

Max Wistow told a Senate panel Thursday that resources that could be recovered are "being eaten up very rapidly." He says most defendants have insurance policies that pay defense costs out of the policy limits.

The former Economic Development Corp. sued the former Red Sox pitcher and 13 others after 38 Studios went bankrupt. It approved a $75 million loan guarantee for the company.

The bill would shield any party that settles with the state from a lawsuit filed by a co-defendant over damages that co-defendant is found liable for.

The committee forwarded the bill to the full Senate.

 

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