Interest on Judgments. Interest on judgments begins to run on date of judgment entry. For the tortious conduct of a public agency, the post judgment interest rate is 2 percent above the equivalent coupon issue yield, as published by the board of governors of the federal reserve system, of the average bill rate for 26 weeks of treasury bills. For the tortious conduct of individuals and entities, the post judgment interest rate is 2 percent above the prime rate, as published by the board of governors of the federal reserve system.
Interest on judgments for the tortious conduct of public agencies, individuals, and entities begins to run from the date on which the cause of action accrues.
In any medical malpractice action filed after the effective date of this law in which a verdict is rendered or a decision is made for monetary damages, interest shall accrue at the rate of 2 percentage points above the prime rate. The interest begins to run from the date of entry of the judgment.
"Medical malpractice" means an actual or alleged negligent act, error, or omission in providing or failing to provide health care services that is actionable under state law governing injuries resulting from health care.
The committee recommended a different version of the bill than what was heard. PRO: This is a fairness bill and it simply moves when prejudgment interest attaches for a claim. Medical malpractice claims were not intended to be affected by this bill. Judges could work 24 hours a day and 7 days a week and not be able to climb out of the backlog of jury trial cases that existed prior to, and was made worse by the pandemic. Judges want parties and attorneys to resolve cases if possible without going to trial. This bill will help resolve those cases. Justice delayed is justice denied. Cases will not settle because the interest under current law accrues from the entry of judgment but if the courts never schedule a trial then the defense has no interest in settlement. Some civil cases languish six to ten years in court. This is a thoughtful and modest step. It gives an incentive to resolve claims. It is fair because people who are injured will not have to be burdened by paying for all their costs until they receive a judgment.
CON: Adding another element of damages which applies only to the defendants is unfair and will not unclog the courts. It would apply prejudgment interest to non-economic damages and future damages. Plaintiffs usually take two to three years before they file a lawsuit, and the courts can take many years before they go to trial, so that defendants would be penalized by paying for prejudgment interest for events out of their control. The medical community is facing difficult challenges and this would increase health costs.