Bill Text: WV SB301 | 2016 | Regular Session | Introduced
Bill Title: Changing amounts of prejudgment and post-judgment interest
Spectrum: Partisan Bill (Republican 4-0)
Status: (Introduced - Dead) 2016-01-15 - To Judiciary [SB301 Detail]
Download: West_Virginia-2016-SB301-Introduced.html
WEST virginia Legislature
2016 regular session
Introduced
Senate Bill 301
BY Senators Ferns, Gaunch, Mullins and Takubo
[Introduced
January 15, 2016;
Referred to the Committee on the Judiciary.]
A BILL to amend and reenact §56-6-31 of the Code of West Virginia, 1931, as amended, relating to rate of interest allowed for prejudgment and post-judgment interest.
Be it enacted by the Legislature of West Virginia:
That §56-6-31 of the Code of West Virginia, 1931, as amended, be amended and reenacted to read as follows:
ARTICLE 6. TRIAL.
§56-6-31. Interest on judgment or decree.
(a) Except where it is otherwise provided by law, every
judgment or decree for the payment of money, whether in an action sounding in
tort, contract or otherwise, entered by any court of this state shall bear simple
interest, not compounding, from the date thereof of the
judgment or decree, whether it be so is stated in the
judgment or decree or not: Provided, That if the judgment or decree, or
any part thereof of it is for special damages, as defined below,
or for liquidated damages, the court may order that some amount of the
special or liquidated damages, shall as calculated after the amount
of any settlements, bear interest. Any such amounts of special or
liquidated damages shall bear simple interest, not compounding, at the rate
in effect for the calendar year in which the right to bring the same shall
have action has accrued, as determined by the court and that
established rate shall remain constant from that date until the date of the
judgment or decree, notwithstanding changes in the federal reserve district
discount rate in effect in subsequent years prior to the date of the judgment
or decree. Special damages includes lost wages and income, medical expenses,
damages to tangible personal property and similar out-of-pocket expenditures,
as determined by the court. If an obligation is based upon a written agreement,
the obligation shall bear a bears prejudgment interest at the
rate and terms set forth in the written agreement until the date the
judgment or decree is entered and, thereafter after that, the
judgment interest rate shall be is the same rate as provided for
in this section.
(b) Notwithstanding the provisions of section five,
article six, chapter forty-seven of this code, the rate of interest on
judgments and decrees for the payment of money, including prejudgment interest,
is three two percentage points above the Fifth Federal Reserve
District secondary discount rate in effect on January 2, of the year in which
the judgment or decree is entered: Provided, That the rate of
prejudgment and post-judgment interest shall may not exceed eleven
seven percent per annum or be less than seven three percent
per annum. The Administrative Office of the Supreme Court of Appeals shall
annually determine the interest rate to be paid upon judgments or decrees for
the payment of money and shall take appropriate measures to promptly notify the
courts and members of the West Virginia State Bar of the rate of interest in
effect for the calendar year in question. Once the rate of interest is
established by a judgment or decree as provided in this section that
established rate shall thereafter after that remain constant for
that particular judgment or decree, notwithstanding changes in the Federal
Reserve District discount rate in effect in subsequent years.
(c) Amendments to this section enacted by the Legislature
during the 2006 2016 regular session shall become
effective January 1, 2007 2017.
NOTE: The purpose of this bill is to change the amounts of prejudgment and post-judgment interest to reflect today's economic conditions.
Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.
