BP BHEAD INT S [atlas:bill]

AN ACT Relating to offers of settlement; amending RCW 4.84.250 and 12.20.060; adding new sections to chapter 4.84 RCW; and creating a new section.

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

Sec. 1. RCW 4.84.250 and 1984 c 258 s 88 are each amended to read as follows:

Notwithstanding any other provisions of chapter 4.84 RCW and RCW 12.20.060, in any action for damages where the amount pleaded by the prevailing party as ((~~hereinafter~~)) defined in RCW 4.84.260, exclusive of costs, is ((~~seven~~)) thirty-five thousand ((~~five hundred~~)) dollars or less, there shall be taxed and allowed to the prevailing party as a part of the costs of the action a reasonable amount to be fixed by the court as attorneys' fees. ((~~After July 1, 1985, the maximum amount of the pleading under this section shall be ten thousand dollars.~~))

Sec. 2. RCW 12.20.060 and 1993 c 341 s 1 are each amended to read as follows:

When the prevailing party in district court is entitled to recover costs as authorized in RCW 4.84.010 in a civil action, the judge shall add the amount thereof to the judgment; in case of failure of the plaintiff to recover or of dismissal of the action, the judge shall enter up a judgment in favor of the defendant for the amount of his or her costs((; and in case any party so entitled to costs is represented in the action by an attorney, the judge shall include attorney's fees of one hundred twenty-five dollars as part of the costs: PROVIDED, HOWEVER, That the plaintiff shall not be entitled to such attorney fee unless he or she obtains, exclusive of costs, a judgment in the sum of fifty dollars or more)).

NEW SECTION. Sec. 3. A new section is added to chapter 4.84 RCW to read as follows:

(1) In any civil cause of action where the amount pleaded is over thirty-five thousand dollars, exclusive of costs, if a defendant serves on the plaintiff a written offer of settlement that is rejected or that is not accepted by the plaintiff within thirty days and the judgment obtained by the plaintiff is less than this offer, the defendant is entitled to recover statutory costs and attorneys' fees as allowed in subsection (3) of this section, including interest thereon, incurred from the date of service of the offer and the court shall set off such costs and attorneys' fees against the judgment. If the costs and attorneys' fees total more than the judgment, the court shall enter judgment for the defendant against the plaintiff for the amount of the costs and fees, less the amount of the plaintiff's award.

(2) In any civil cause of action, if a plaintiff serves on the defendant a written offer of settlement that is rejected or that is not accepted by the defendant within thirty days and the plaintiff recovers a judgment in an amount greater than the offer, the plaintiff is entitled to recover statutory costs, interest on the judgment from the date of service of process, and attorneys' fees as allowed in subsection (3) of this section incurred from the date of the service of the offer and the court shall enter judgment for the plaintiff against the defendant for the amount of the costs, interest, and fees so awarded.

(3) Unless otherwise modified by the court under subsection (7) of this section, "reasonable attorneys' fees" means ten percent of the judgment obtained.

(4) Service of an offer of settlement shall be made in the manner provided by superior court civil rule 5.

(5) An offer shall not be filed with the court or be made known in any way to the trier of fact until the judgment is presented to the court.

(6) Unless otherwise agreed to by the parties, any offer made pursuant to this section shall not be made prior to ninety days after filing of the suit, nor later than sixty days prior to the scheduled trial date, and shall not be accepted later than thirty days before the scheduled trial date.

(7) The payment of attorneys' fees and statutory costs under this section shall not be excused or modified unless the court finds that one or more of the following factors so require:

(a) The closeness of questions of fact and law at issue;

(b) Whether the cause of action was in the nature of a test case, presenting questions of far-reaching importance affecting nonparties; or

If payment is excused or modified, the court shall enter written findings setting forth in detail the basis for the decision to excuse payment.

(8) Interest shall accrue on any award under this section at the rate of interest for judgments under RCW 4.56.110 or 4.56.115.

(9) An attorney shall not receive as compensation any portion of the interest awarded pursuant to this section.

(10) In no event may any judgment for attorneys' fees and costs entered pursuant to this section for the rejection or failure to accept an offer become a lien against or in any manner enforceable against the primary residence of the party to whom the offer was directed or against any other property otherwise exempt by law.

NEW SECTION. Sec. 4. A new section is added to chapter 4.84 RCW to read as follows:

(1) For purposes of section 3 of this act:

(a) "Judgment" does not include awards rendered in proceedings pursuant to: (i) Chapters 26.09, 19.86, and 7.06 RCW; (ii) mandatory arbitration rule 1.1 et seq.; or (iii) proceedings involving a contract or lease which specifically provides for the payment of attorneys' fees and costs incurred to enforce the provisions of the contract or lease.

(b) "Judgment" is the sum of all damages found and interest awarded, less all set-offs allowed on affirmative defenses and counterclaims, except for the set-off contemplated in section 3(1) of this act, all as calculated before any statutorily required limitation on periodic payment adjustments or cost award.

(3) In the event of a partial settlement involving some, but not all defendants, the sum paid in settlement by each defendant is deemed to be allocated between that defendant's total contribution to the plaintiff's ultimate damages found and interest awarded, and to the plaintiff's statutory costs and attorneys' fees incurred to date of that partial settlement.

(4) All amounts awarded for statutory costs and attorneys' fees under section 3 of this act are payable in a lump sum and are not subject to periodic payment.

(5) If a party is entitled to statutory costs and attorneys' fees pursuant to section 3 of this act, that party's attorney shall file and serve on all parties an affidavit setting forth with reasonable specificity the nature and amount of legal services rendered and costs incurred since the date the offer of settlement was served, in addition to a cost bill required by RCW 4.84.090.

NEW SECTION. Sec. 5. This act applies to offers of settlement made after the effective date of this section.

NEW SECTION. Sec. 6. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.