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AN ACT Relating to prejudgment interest; amending RCW 4.56.110 and 4.56.115; adding a new section to chapter 4.56 RCW; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1. RCW 4.56.110 and 1989 c 360 s 19 are each amended to read as follows:

Interest on judgments shall accrue as follows:

(1) Judgments founded on written contracts, providing for the payment of interest until paid at a specified rate, shall bear interest at the rate specified in the contracts: PROVIDED, That said interest rate is set forth in the judgment.

(2) All judgments for unpaid child support that have accrued under a superior court order or an order entered under the administrative procedure act shall bear interest at the rate of twelve percent.

(3) Except as provided under RCW 19.52.010, 82.32.060, and subsections (1) and (2) of this section, judgments shall bear interest from the date of ((~~entry~~)) notice at the maximum rate permitted under RCW 19.52.020 on the date of ((~~entry thereof~~)) notice: PROVIDED, That in any case where:

(a) A court is directed on review to enter judgment on a verdict or in any case where a judgment entered on a verdict is wholly or partly affirmed on review, then interest on the judgment or on that portion of the judgment affirmed shall date back to and shall accrue from the date ((~~the verdict was rendered~~)) of notice;

(b) Any portion of a claim is paid to a plaintiff or to a third party on behalf of the plaintiff by a defendant prior to the entry of the judgment, then prejudgment interest shall accrue on the amount of the claim paid from the date of notice to the date of payment;

(c) At least one hundred and twenty days before trial the judgment debtor has made a written settlement offer that is not accepted by the judgment creditor within thirty days and the offer equals or exceeds the judgment amount, then no prejudgment interest shall accrue on the judgment;

(d) Any portion of a judgment is found to be future damages or is found to be noneconomic damages, then no prejudgment interest shall accrue on that portion of the judgment;

(e) An established trial date is continued on the motion or request of the plaintiff whether or not the defendant joined in the motion or concurred with the request, then prejudgment interest shall not be applied during the period of the continuance; and

(f) If the judgment amount differs from the amount claimed in the notice, then prejudgment interest shall accrue on the judgment amount.

(4) "Date of notice" as used in subsection (3) of this section means:

(a) The date a claimant gives written notice of a claim to a potential defendant, which notice may be given by personal service or by registered mail to the potential defendant at the potential defendant's last known address. Written notice of the claim shall include the identification, amount, nature, and elements known at the time of claim; or

(b) The date a lawsuit is initiated, either by filing or personal service, if prior written notice of a claim has not otherwise been given to the defendant.

(5) "Noneconomic damages" as used in subsection (3) of this section means subjective, nonmonetary losses, including, but not limited to pain, suffering, inconvenience, mental anguish, disability or disfigurement incurred by the injured party, emotional distress, loss of society and companionship, loss of consortium, injury to reputation and humiliation, and destruction of the parent-child relationship.

NEW SECTION. Sec. 2. A new section is added to chapter 4.56 RCW to read as follows:

Any attorney for a plaintiff or claimant shall not receive as compensation any portion of the prejudgment interest awarded under RCW 4.56.110(3).

Sec. 3. RCW 4.56.115 and 1983 c 147 s 2 are each amended to read as follows:

Judgments founded on the tortious conduct of the state of Washington or of the political subdivisions, municipal corporations, and quasi municipal corporations of the state, whether acting in their governmental or proprietary capacities, shall bear interest ((from the date of entry at the maximum rate permitted under RCW 19.52.020 on the date of entry thereof: PROVIDED, That in any case where a court is directed on review to enter judgment on a verdict or in any case where a judgment entered on a verdict is wholly or partly affirmed on review, interest on the judgment or on that portion of the judgment affirmed shall date back to and shall accrue from the date the verdict was rendered)) in accordance with the provisions of RCW 4.56.110.

NEW SECTION. Sec. 4. Section 1 of this act applies to any judgment entered after the effective date of this act.