H-559                _______________________________________________

                                                    HOUSE BILL NO. 877

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

By Representatives Armstrong, Hargrove, Crane, Appelwick, Prince, Brough, Scott, L. Smith, Wang, Heavey, Meyers, Cooper, Wineberry and Jesernig

Read first time 2/13/87 and referred to Committee on Judiciary.

AN ACT Relating to prejudgment interest; amending RCW 4.56.110; adding a new section to chapter 4.56 RCW; and creating a new section.

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) Except as provided under subsection (1) 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.

(3) In all other civil causes of action, the court shall add interest to any judgment entered at the rate allowed in subsection (4) of this section from the date the cause of action was filed to the date of entry of judgment calculated on the total judgment awardable before calculation of such interest.

(4) The rate of interest under subsection (3) of this section shall be the maximum rate permitted under RCW 19.52.020 on the date the cause of action was filed.

NEW SECTION. Sec. 2.  A new section is added to chapter 4.56 RCW to read as follows:

          An attorney shall not receive as compensation any portion of the interest awarded pursuant to RCW 4.56.110(3).

NEW SECTION. Sec. 3.     Section 1 of this act applies to any judgment entered after the effective date of this section.