Bill Text: CA SB393 | 2009-2010 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Judgments: interest.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2010-02-01 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB393 Detail]

Download: California-2009-SB393-Introduced.html

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BILL NUMBER: SB 393	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Harman

                        FEBRUARY 26, 2009

   An act to amend Section 3291 of the Civil Code, and to amend
Section 685.010 of the Code of Civil Procedure, relating to
judgments.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 393, as introduced, Harman. Judgments: interest.
   The California Constitution provides that the rate of interest on
a judgment rendered in any court of this state shall be set by the
Legislature at not more than 10% per annum. Existing law provides
that interest accrues at the rate of 10% per annum on the principal
amount of a money judgment remaining unsatisfied.
   This bill would provide that interest accrues on the principal
amount of a money judgment remaining unsatisfied at a rate that is
the lesser of 10% per annum or an amount equal to the prime rate
determined and published by the Board of Governors of the Federal
Reserve System, as specified, plus 2% on the day the judgment is
entered.
   Under existing law, if the plaintiff makes an offer that the
defendant does not accept prior to trial or within 30 days, whichever
occurs first, and the plaintiff obtains a more favorable judgment,
the judgment shall bear interest at the legal rate of 10% per annum
calculated from the date of the plaintiff's first offer that is
exceeded by the judgment.
   This bill would provide, if the plaintiff makes an offer that the
defendant does not accept prior to trial or within 30 days, whichever
occurs first, and the plaintiff obtains a more favorable judgment,
that the portion of the judgment awarded as compensatory damages for
personal injury shall bear interest at a rate, calculated from the
date of the plaintiff's first offer that is exceeded by the judgment,
that is the lesser of 10% per annum or an amount equal to the prime
rate determined and published by the Board of Governors of the
Federal Reserve System, as specified, plus 2% on the day the judgment
is entered.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 3291 of the Civil Code is amended to read:
   3291.   (a)    In any action brought to recover
damages for personal injury sustained by any person resulting from or
occasioned by the tort of any other person, corporation,
association, or partnership, whether by negligence or by willful
intent of the other person, corporation, association, or partnership,
and whether the injury was fatal or otherwise, it is lawful for the
plaintiff in the complaint to claim interest on the damages alleged
as provided in this section. 
   If 
    (b)     If  the plaintiff makes an
offer pursuant to Section 998 of the Code of Civil Procedure 
which   that  the defendant does not accept prior
to trial or within 30 days, whichever occurs first, and the plaintiff
obtains a more favorable judgment, the  portion of the 
judgment  awarded as compensatory damages for personal injury
 shall bear interest at  the legal rate of 10 percent
per annum   a rate that is the lesser of the following,
 calculated from the date of the plaintiff's first offer
pursuant to Section 998 of the Code of Civil Procedure  which
  that  is exceeded by the judgment, and interest
shall accrue until the  satisfaction   of
judgment.   award of judgment:  
   (1) Ten percent per annum.  
   (2) An amount equal to the prime rate determined by the Board of
Governors of the Federal Reserve System, as published in Statistical
Release H.15, or any publication that may supersede it, plus 2
percent on the day the judgment is entered.  
   This 
    (c)     This  section shall not apply
to a public entity, or to a public employee for an act or omission
within the scope of employment  , and neither  
. Neither  the public entity nor the public employee shall be
liable, directly or indirectly, to any person for any interest
imposed by this section.
  SEC. 2.  Section 685.010 of the Code of Civil Procedure is amended
to read:
   685.010.  (a) Interest accrues  at the rate of 10 percent
per annum  on the principal amount of a money judgment
remaining unsatisfied  .   at a rate that is the
lesser of the following:  
   (1) Ten percent per annum.  
   (2) An amount equal to the prime rate determined by the Board of
Governors of the Federal Reserve System, as published in Statistical
Release H.15, or any publication that may supersede it, plus 2
percent on the day the judgment is entered. 
   (b) The Legislature reserves the right to change the rate of
interest provided in subdivision (a) at any time to a  lower
 rate  of less than 10 percent  per annum,
regardless of the date of entry of the judgment or the date any
obligation upon which the judgment is based was incurred.  A
change in the rate of interest may be made applicable only to the
interest that accrues after the operative date of the statute that
changes the rate. 
  SEC. 3.  This act shall apply to all cases pending on, or filed on
or after, January 1, 2010.