38 Studios settlement bill clears Rhode Island House of Reps

A bill to promote out-of-court settlements for lawsuits over the collapse of Curt Schilling's 38 Studios has passed through the Rhode Island House of Representatives this week. The bill, which passed in a vote of 53-16, would protect defendants who settle from lawsuits filed by co-defendants over damages those co-defendants are found liable for.

In layman's terms, the bill encourages settlements and provides a legal buffer: If a 38 Studios official settles with the state, they will not be able to seek those due damages from any other 38 Studios official tied up in legal proceedings. Now all that's left is for Governor Lincoln Chafee to sign off on the bill before it becomes law.

Another bill introduced earlier this month proposes the state of Rhode Island default on the $75 million loan it provided 38 Studios. Defaulting on the loan would get Rhode Island off the hook for a $12.5 million loan payment due later this year as part of the debt left behind by 38 Studios. Last year, a similar bill proposing the state default on the loan failed to gather momentum.
[Image: Joystiq]

This article was originally published on Joystiq.