S-1432               _______________________________________________

                                                   SENATE BILL NO. 3809

                        _______________________________________________

State of Washington                              49th Legislature                              1985 Regular Session

By Senators Moore, Bottiger and Halsan

Read first time 2/6/85 and referred to Committee on Financial Institutions.

AN ACT Relating to the award of interest on judgments; and amending RCW 4.56.110 and 4.56.115.

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

        Sec. 1.  Section 4, chapter 136, Laws of 1895 as last amended by section 1, chapter 147, Laws of 1983 and RCW 4.56.110 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) In all actions brought to recover damages, judgments shall bear interest from the date initial notice was given to the party against whom judgment is entered at the maximum rate permitted under RCW 19.52.020 on that date.  Prejudgment interest shall not accrue if the party to whom the interest is owed recovers an amount equal to or less than the final written offer in settlement in effect thirty days before trial.

(3) Except as provided under subsections (1) and (2) of this section, judgments 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.

        Sec. 2.  Section 1, chapter 26, Laws of 1975 as amended by section 2, chapter 147, Laws of 1983 and RCW 4.56.115 are each amended to read as follows:

(1) 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)) initial notice was given to the party against whom the judgment is entered at the maximum rate permitted under RCW 19.52.020 on ((the)) that 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.

(2) Prejudgment interest shall not accrue if the party to whom the judgment is owed recovers an amount equal to or less than the final written offer in settlement in effect thirty days before trial.