Bill Text: MN HF1495 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Interest on verdicts, awards, and judgements regulated.
Spectrum: Partisan Bill (Republican 4-0)
Status: (Introduced - Dead) 2013-03-13 - Introduction and first reading, referred to Civil Law [HF1495 Detail]
Download: Minnesota-2013-HF1495-Introduced.html
1.2relating to civil actions; regulating interest on verdicts, awards, and judgments;
1.3amending Minnesota Statutes 2012, section 549.09, subdivision 1.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2012, section 549.09, subdivision 1, is amended to read:
1.6 Subdivision 1. When owed; rate. (a) When a judgment or award is for the recovery
1.7of money, including a judgment for the recovery of taxes, interest from the time of the
1.8verdict, award, or report until judgment is finally entered shall be computed by the court
1.9administrator or arbitrator as provided in paragraph (c) and added to the judgment or award.
1.10(b) Except as otherwise provided by contract or allowed by law, preverdict,
1.11preaward, or prereport interest on pecuniary damages shall be computed as provided
1.12in paragraph (c) from the time of the commencement of the action or a demand for
1.13arbitration, or the time of a written notice of claim, whichever occurs first, except as
1.14provided herein. The action must be commenced within two years of a written notice of
1.15claim for interest to begin to accrue from the time of the notice of claim. If either party
1.16serves a written offer of settlement, the other party may serve a written acceptance or a
1.17written counteroffer within 30 days. After that time, interest on the judgment or award
1.18shall be calculated by the judge or arbitrator in the following manner. The prevailing
1.19party shall receive interest on any judgment or award from the time of commencement
1.20of the action or a demand for arbitration, or the time of a written notice of claim, or as
1.21to special damages from the time when special damages were incurred, if later, until the
1.22time of verdict, award, or report only if the amount of its offer is closer to the judgment or
1.23award than the amount of the opposing party's offer. If the amount of the losing party's
1.24offer was closer to the judgment or award than the prevailing party's offer, the prevailing
2.1party shall receive interest only on the amount of the settlement offer or the judgment or
2.2award, whichever is less, and only from the time of commencement of the action or a
2.3demand for arbitration, or the time of a written notice of claim, or as to special damages
2.4from when the special damages were incurred, if later, until the time the settlement offer
2.5was made. Subsequent offers and counteroffers supersede the legal effect of earlier offers
2.6and counteroffers. For the purposes of clause (2), the amount of settlement offer must
2.7be allocated between past and future damages in the same proportion as determined by
2.8the trier of fact. Except as otherwise provided by contract or allowed by law, preverdict,
2.9preaward, or prereport interest shall not be awarded on the following:
2.10(1) judgments, awards, or benefits in workers' compensation cases, but not including
2.11third-party actions;
2.12(2) judgments or awards for future damages;
2.13(3) punitive damages, fines, or other damages that are noncompensatory in nature;
2.14(4) judgments or awards not in excess of the amount specified in section491A.01 ; and
2.15(5) that portion of any verdict, award, or report which is founded upon interest, or
2.16costs, disbursements, attorney fees, or other similar items added by the court or arbitrator.
2.17(c)(1)For a judgment or award of $50,000 or less or a judgment or award for or
2.18against the state or a political subdivision of the state, regardless of the amount, The
2.19interest shall be computed as simple interest per annum. The rate of interest shall be based
2.20on the secondary market yield of one year United States Treasury bills, calculated on a
2.21bank discount basis as provided in this section.
2.22On or before the 20th day of December of each year the state court administrator
2.23shall determine the rate from the one-year constant maturity treasury yield for the most
2.24recent calendar month, reported on a monthly basis in the latest statistical release of the
2.25board of governors of the Federal Reserve System. This yield, rounded to the nearest one
2.26percent, or four percent, whichever is greater, shall be the annual interest rate during the
2.27succeeding calendar year. The state court administrator shall communicate the interest
2.28rates to the court administrators and sheriffs for use in computing the interest on verdicts
2.29and shall make the interest rates available to arbitrators.
2.30This clause applies to any section that references section
549.09 by citation for the
2.31purposes of computing an interest rate on any amount owed to or by the state or a political
2.32subdivision of the state, regardless of the amount.
2.33(2)For a judgment or award over $50,000, other than a judgment or award for or
2.34against the state or a political subdivision of the state, the interest rate shall be ten percent
2.35per year until paid.
3.1(3) When a judgment creditor, or the judgment creditor's attorney or agent, has
3.2received a payment after entry of judgment, whether the payment is made voluntarily by
3.3or on behalf of the judgment debtor, or is collected by legal process other than execution
3.4levy where a proper return has been filed with the court administrator, the judgment
3.5creditor, or the judgment creditor's attorney, before applying to the court administrator
3.6for an execution shall file with the court administrator an affidavit of partial satisfaction.
3.7The affidavit must state the dates and amounts of payments made upon the judgment after
3.8the most recent affidavit of partial satisfaction filed, if any; the part of each payment that
3.9is applied to taxable disbursements and to accrued interest and to the unpaid principal
3.10balance of the judgment; and the accrued, but the unpaid interest owing, if any, after
3.11application of each payment.
3.12(d) This section does not apply to arbitrations between employers and employees
3.13under chapter 179 or 179A. An arbitrator is neither required to nor prohibited from
3.14awarding interest under chapter 179 or under section179A.16 for essential employees.
3.15(e) For purposes of this subdivision:
3.16(1) "state" includes a department, board, agency, commission, court, or other entity
3.17in the executive, legislative, or judicial branch of the state; and
3.18(2) "political subdivision" includes a town, statutory or home rule charter city,
3.19county, school district, or any other political subdivision of the state.
3.20(e) This section does not apply to a judgment or award upon which interest is entitled
3.21to be recovered under section 60A.0811.
3.22EFFECTIVE DATE.This section is effective August 1, 2013, and applies to
3.23judgments and awards entered on or after that date.
1.3amending Minnesota Statutes 2012, section 549.09, subdivision 1.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2012, section 549.09, subdivision 1, is amended to read:
1.6 Subdivision 1. When owed; rate. (a) When a judgment or award is for the recovery
1.7of money, including a judgment for the recovery of taxes, interest from the time of the
1.8verdict, award, or report until judgment is finally entered shall be computed by the court
1.9administrator or arbitrator as provided in paragraph (c) and added to the judgment or award.
1.10(b) Except as otherwise provided by contract or allowed by law, preverdict,
1.11preaward, or prereport interest on pecuniary damages shall be computed as provided
1.12in paragraph (c) from the time of the commencement of the action or a demand for
1.13arbitration, or the time of a written notice of claim, whichever occurs first, except as
1.14provided herein. The action must be commenced within two years of a written notice of
1.15claim for interest to begin to accrue from the time of the notice of claim. If either party
1.16serves a written offer of settlement, the other party may serve a written acceptance or a
1.17written counteroffer within 30 days. After that time, interest on the judgment or award
1.18shall be calculated by the judge or arbitrator in the following manner. The prevailing
1.19party shall receive interest on any judgment or award from the time of commencement
1.20of the action or a demand for arbitration, or the time of a written notice of claim, or as
1.21to special damages from the time when special damages were incurred, if later, until the
1.22time of verdict, award, or report only if the amount of its offer is closer to the judgment or
1.23award than the amount of the opposing party's offer. If the amount of the losing party's
1.24offer was closer to the judgment or award than the prevailing party's offer, the prevailing
2.1party shall receive interest only on the amount of the settlement offer or the judgment or
2.2award, whichever is less, and only from the time of commencement of the action or a
2.3demand for arbitration, or the time of a written notice of claim, or as to special damages
2.4from when the special damages were incurred, if later, until the time the settlement offer
2.5was made. Subsequent offers and counteroffers supersede the legal effect of earlier offers
2.6and counteroffers. For the purposes of clause (2), the amount of settlement offer must
2.7be allocated between past and future damages in the same proportion as determined by
2.8the trier of fact. Except as otherwise provided by contract or allowed by law, preverdict,
2.9preaward, or prereport interest shall not be awarded on the following:
2.10(1) judgments, awards, or benefits in workers' compensation cases, but not including
2.11third-party actions;
2.12(2) judgments or awards for future damages;
2.13(3) punitive damages, fines, or other damages that are noncompensatory in nature;
2.14(4) judgments or awards not in excess of the amount specified in section
2.15(5) that portion of any verdict, award, or report which is founded upon interest, or
2.16costs, disbursements, attorney fees, or other similar items added by the court or arbitrator.
2.17(c)(1)
2.18
2.19interest shall be computed as simple interest per annum. The rate of interest shall be based
2.20on the secondary market yield of one year United States Treasury bills, calculated on a
2.21bank discount basis as provided in this section.
2.22On or before the 20th day of December of each year the state court administrator
2.23shall determine the rate from the one-year constant maturity treasury yield for the most
2.24recent calendar month, reported on a monthly basis in the latest statistical release of the
2.25board of governors of the Federal Reserve System. This yield, rounded to the nearest one
2.26percent, or four percent, whichever is greater, shall be the annual interest rate during the
2.27succeeding calendar year. The state court administrator shall communicate the interest
2.28rates to the court administrators and sheriffs for use in computing the interest on verdicts
2.29and shall make the interest rates available to arbitrators.
2.30
2.31
2.32
2.33(2)
2.34
2.35
3.1
3.2received a payment after entry of judgment, whether the payment is made voluntarily by
3.3or on behalf of the judgment debtor, or is collected by legal process other than execution
3.4levy where a proper return has been filed with the court administrator, the judgment
3.5creditor, or the judgment creditor's attorney, before applying to the court administrator
3.6for an execution shall file with the court administrator an affidavit of partial satisfaction.
3.7The affidavit must state the dates and amounts of payments made upon the judgment after
3.8the most recent affidavit of partial satisfaction filed, if any; the part of each payment that
3.9is applied to taxable disbursements and to accrued interest and to the unpaid principal
3.10balance of the judgment; and the accrued, but the unpaid interest owing, if any, after
3.11application of each payment.
3.12(d) This section does not apply to arbitrations between employers and employees
3.13under chapter 179 or 179A. An arbitrator is neither required to nor prohibited from
3.14awarding interest under chapter 179 or under section
3.15
3.16
3.17
3.18
3.19
3.20(e) This section does not apply to a judgment or award upon which interest is entitled
3.21to be recovered under section 60A.0811.
3.22EFFECTIVE DATE.This section is effective August 1, 2013, and applies to
3.23judgments and awards entered on or after that date.
