SENATE BILL REPORT

                            SB 5157

  AS REPORTED BY COMMITTEE ON LAW & JUSTICE, FEBRUARY 5, 1993

Brief Description:  Increasing statutory attorneys' fees.

SPONSORS: Senators Hargrove and Nelson

SENATE COMMITTEE ON LAW & JUSTICE

Majority Report:  That Substitute Senate Bill No. 5157 be substituted therefor, and the substitute bill do pass. 

     Signed by Senators A. Smith, Chairman; Quigley, Vice Chairman; Hargrove, McCaslin, Nelson, Niemi, Rinehart, Roach, and Spanel.

Staff:  Tom McBride (786‑7448)

Hearing Dates: January 29, 1993; February 5, 1993

BACKGROUND:

Parties in a civil lawsuit may recover attorney's fees.  Attorney's fees may be awarded by way of contractual agreement, by court decision or by statute.

Currently, in civil cases involving sums under $10,000, state statutes provide for attorney's fees in the amount of $50 to the prevailing party, unless otherwise provided.

To obtain the statutory award of attorney's fees, the debt recovery or judgment obtained by the prevailing party must be at least $25, exclusive of the costs of bringing the lawsuit.  These cases are generally tried in district court.

Statutory attorney's fees in cases involving sums over $10,000, which are generally tried in superior court, are $125.

SUMMARY:

Statutory attorney's fees in cases involving less than $10,000 is raised to $125.

EFFECT OF PROPOSED SUBSTITUTE:

The substitute bill raises the amount of statutory attorney's fees to $100, and also raises the minimum judgment recovery to qualify for statutory attorney's fees to $50.

Appropriation:  none

Revenue:  none

Fiscal Note:  none requested

TESTIMONY FOR:

Amount of attorney's fees awarded have not been raised since 1985 and no longer reflect costs of retaining an attorney to pursue claims.

TESTIMONY AGAINST:  None

TESTIFIED:  PRO:  Benita McCormick, Washington Collectors Association; Kevin Underwood, Allied Credit