AN ACT Relating to attorneys' fees; amending RCW 4.84.030, 4.84.250, 4.84.300, and 12.20.060; adding new sections to chapter 4.84 RCW; adding a new section to chapter 34.04 RCW; repealing RCW 4.84.020; and providing an effective date.

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

Sec. 1. Sections 368 and 369, page 201, Laws of 1854 as last amended by section 1, page 337, Laws of 1890 and RCW 4.84.030 are each amended to read as follows:

In any action in the superior court of Washington, the prevailing party shall be entitled to his costs and disbursements((~~; but the plaintiff shall in no case be entitled to costs taxed as attorneys' fees in actions within the jurisdiction of a justice of the peace when commenced in the superior court~~)).

Sec. 2. Section 1, chapter 84, Laws of 1973 as last amended by section 88, chapter 258, Laws of 1984 and RCW 4.84.250 are each amended to read as follows:

Notwithstanding any other provisions of chapter 4.84 RCW and RCW 12.20.060, in any action for damages ((where the amount pleaded by the prevailing party as hereinafter defined, exclusive of costs, is seven thousand five hundred dollars or less, there shall be taxed and allowed to the prevailing party as a part of the costs of the action)), a reasonable amount to be fixed by the court as attorneys' fees((~~. After July 1, 1985, the maximum amount of the pleading under this section shall be ten thousand dollars~~)) incurred after the making of the final offer of settlement by the prevailing party shall be taxed and allowed to the prevailing party, as defined in RCW 4.84.260 and 4.84.270, as a part of the costs of the action. However, there shall be no award of attorneys' fees to the state of Washington or any political subdivision thereof, in any action instituted by any natural person or his or her marital community.

NEW SECTION. Sec. 3. A new section is added to chapter 4.84 RCW to read as follows:

The payment of attorneys' fees under RCW 4.84.250 may be excused, in the discretion of the court, where the interests of justice so dictate. If payment is excused, the court shall enter written findings setting forth in detail the basis for the decision to excuse payment.

NEW SECTION. Sec. 4. A new section is added to chapter 4.84 RCW to read as follows:

A prevailing party seeking an award of attorneys' fees under RCW 4.84.250 shall submit an affidavit of attorneys' fees with the cost bill submitted under RCW 4.84.090. In determining the attorneys' fees to be awarded, the court shall take into consideration the criteria for attorneys' fees outlined in the code of professional responsibility as adopted by the supreme court.

Sec. 5. Section 6, chapter 84, Laws of 1973 as amended by section 4, chapter 94, Laws of 1980 and RCW 4.84.300 are each amended to read as follows:

The provisions of RCW 4.84.250 through 4.84.290 and sections 3 and 4 of this 1986 act shall apply regardless of whether the action is commenced in ((~~justice~~)) district court or superior court except as provided in RCW 4.84.280. This section shall not be construed as conferring jurisdiction on either court.

Sec. 6. Section 85, page 237, Laws of 1854 as last amended by section 2, chapter 240, Laws of 1985 and RCW 12.20.060 are each amended to read as follows:

When the prevailing party in district court is entitled to recover costs as authorized in RCW 4.84.010 in a civil action, the judge shall add the amount thereof to the judgment; in case of failure of the plaintiff to recover or of dismissal of the action, the judge shall enter up a judgment in favor of the defendant for the amount of his costs((; and in case any party so entitled to costs is represented in the action by an attorney, the judge shall include attorney's fees of fifty dollars as part of the costs: PROVIDED, HOWEVER, That the plaintiff shall not be entitled to such attorney fee unless he obtains, exclusive of costs, a judgment in the sum of twenty-five dollars or more)). Costs shall include attorneys' fees as provided in chapter 4.84 RCW.

NEW SECTION. Sec. 7. A new section is added to chapter 34.04 RCW to read as follows:

An agency which appeals under RCW 34.04.130 or 34.04.140 a final judgment of the superior court or a duly constituted hearing board in favor of any person or organization other than another agency or governmental entity shall be required to pay all reasonable attorneys' fees and court costs, as awarded by the court, of such person or organization in answering the appeal.

NEW SECTION. Sec. 8. Section 1, page 176, Laws of 1885, section 1, page 9, Laws of 1888, section 1, chapter 44, Laws of 1891, section 1, chapter 48, Laws of 1895 and RCW 4.84.020 are each hereby repealed.

NEW SECTION. Sec. 9. This act shall take effect on January 1, 1987, and shall apply to all cases pending in the trial courts as of that date.

NEW SECTION. Sec. 10. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.