H-920                _______________________________________________

                                                    HOUSE BILL NO. 968

                        _______________________________________________

State of Washington                              49th Legislature                              1985 Regular Session

By Representatives Haugen, Taylor, Braddock, Allen, Baugher, Bristow, Brooks, Fisch, Fisher, Hankins, Holland, Leonard, Lundquist, May, Miller, Rayburn, Rust, C. Smith, L. Smith, Smitherman, Thomas, Vekich, Walker, K. Wilson, Dobbs, Unsoeld, J. Williams, Winsley, Isaacson and Doty

Read first time 2/8/85 and referred to Committee on Judiciary.

AN ACT Relating to payment of judgments in personal injury and wrongful death actions; and adding a new section to chapter 4.56 RCW.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 4.56 RCW to read as follows:

          (1) In any action for personal injuries or wrongful death in which the trier of fact determines the defendant is liable for damages suffered by the plaintiff:

          (a) The defendant may  make a lump sum payment for all damages so assessed, with future economic losses and expenses reduced to present value; or

          (b) Upon motion of the plaintiff, the defendant, or upon the court's own motion, the court shall enter judgment ordering payment for future economic losses or pain and suffering to be paid in periodic payments in a manner such that the sum of the installment payments equals the amount of the judgment.  This provision does not apply to awards intended to compensate a party for economic losses already incurred and paid.

          (2) In entering such a judgment ordering the payment of future damages by periodic payments, the court shall approve the method and means of payment and make a specific finding as to the dollar amount of periodic payment which will compensate the judgment creditor for the future damages.  Further, the judgment ordering the payment of future damages by periodic payments shall specify the recipient or recipients of the payments, the dollar amounts of the payments, the interval between payments, and the number of payments or the period of time over which payments shall be made.

          (3) If the claimant has been awarded damages other than economic damages to be discharged by periodic payments, and the claimant dies prior to the termination of the period during which such payments are to be made, the liability of the defendant or defendants for amounts intended to compensate the plaintiff for such noneconomic damages ceases and the estate of the claimant has no claim for these amounts.  However, the liability of the defendant or defendants shall continue for the lifetime of the plaintiff's surviving spouse and dependent children during the time when the child or children are below the age of majority.

          (4) Nothing in this section precludes any other method of payment of awards if consented to by the parties.

          (5) By January 1, 1986, the supreme court shall adopt rules governing payment of any judgment subject to a periodic payment plan under this section.

          (6) This section does not apply to a judgment issued prior to the adoption of rules by the supreme court under subsection (5) of this section.