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Bill would expand voluntary-payment statute so insurers and others can make partial payments without admission
Summary
House Bill 324 would expand Montana's voluntary-payment law to allow partial payments on a broader range of claims (for example, contract claims) without admitting liability; sponsor said the change is intended to facilitate partial resolution of disputes while preserving bad-faith protections.
Majority Leader Steve Fitzpatrick introduced House Bill 324 and said the measure would expand Montana’s voluntary-payment statute so an entity may make voluntary payments toward parts of a claim without admitting liability for the entire claim.
Purpose and examples: Fitzpatrick used a traffic-accident analogy: if parties dispute the total damages, an insurer or other payer could nevertheless make interim payments for medical bills or lost wages while reserving defenses as to other claim components. The bill would extend that option beyond personal-injury claims to include contract, warranty and other claim types, subject to exceptions for insurance-bad-faith claims and attorney-fee claims cited in the statute.
Record and response: No proponents or opponents appeared in person or online at the hearing. Committee members asked clarifying questions about the interaction between voluntary payments and court verdicts; the sponsor explained voluntary payments are subtracted from any later judgment.
Ending: The sponsor offered to provide talking points to any committee member who will carry the bill and asked for a favorable report; the committee recorded no vote during the hearing.
