H-1897 _______________________________________________
SUBSTITUTE HOUSE BILL NO. 1643
_______________________________________________
State of Washington 51st Legislature 1989 Regular Session
By House Committee on Judiciary (originally sponsored by Representatives Appelwick, Padden, Inslee, Miller, R. King, P. King, Dorn, Cole, Wineberry, Belcher, Dellwo, Leonard, Heavey, Crane, R. Meyers, K. Wilson, Wolfe, Rector, Prince, Brekke, Brough, Pruitt, Jacobsen, Fuhrman, Locke, Wang and Ferguson)
Read first time 3/1/89.
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 RCW 19.52.010, 82.32.060, and subsection (1) of this
section, judgments shall bear interest from the date of ((entry)) notice
at the maximum rate permitted under RCW 19.52.020 on the date of ((entry
thereof)) notice: PROVIDED, That in any case where: (a) 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, then
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)) of
notice ; (b) any portion of a claim is paid to a plaintiff or to a third party
on behalf of the plaintiff by a defendant prior to the entry of the judgment,
then prejudgment interest shall accrue on the amount of the claim paid from the
date of notice to the date of payment; (c) any portion of a claim is found to
be future noneconomic damages as defined in RCW 4.56.250, then no prejudgment
interest shall accrue on that portion of the claim; (d) the judgment debtor has
made a written settlement offer that is not accepted by the judgment creditor
within thirty days, or sixty days prior to trial, whichever occurs first, if
the settlement offer is made at least ninety days prior to trial, and the
settlement offer is not less than seventy-five percent of the judgment amount,
then prejudgment interest after the date of service of the settlement offer
shall only be calculated on that portion of the judgment which exceeds the
settlement offer; (e) an established trial date is continued on the motion or
request of the plaintiff whether or not the defendant joined in the motion or
concurred with the request, then prejudgment interest shall not be applied
during the period of the continuance; and (f) if the judgment amount differs
from the amount claimed in the notice, then prejudgment interest shall accrue
on the judgment amount.
(3) "Date of notice" as used in subsection (2) of this section means: (a) The date a claimant gives written notice of a claim to a potential defendant, which notice may be given by personal service or by registered mail to the potential defendant at the potential defendant's last known address. Written notice of the claim shall include the identification, amount, nature, and elements known at the time of claim; or (b) the date a lawsuit is initiated, either by filing or personal service, if prior written notice of a claim has not otherwise been given to the defendant.
NEW SECTION. Sec. 2. A new section is added to chapter 4.56 RCW to read as follows:
Any attorney for a plaintiff or claimant shall not receive as compensation any portion of the prejudgment interest awarded pursuant to RCW 4.56.110(2).
NEW SECTION. Sec. 3. Section 1 of this act applies to any judgment entered after the effective date of this act.