First Substitute S.B. 69
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7 LONG TITLE
8 General Description:
9 This bill requires that in order for a plaintiff to receive prejudgment interest, the
10 plaintiff shall have tendered an offer of settlement.
11 Highlighted Provisions:
12 This bill:
13 . requires a plaintiff to have tendered an offer of settlement before claiming
14 prejudgment interest on a verdict;
15 . provides that prejudgment interest is only calculated from the date of a qualifying
16 offer;
17 . sets limits on the award of prejudgment interest based upon the offer of settlement
18 amount vis-a-vis the verdict amount;
19 . sets the percentage rate the court shall use to calculate prejudgment interest at one
20 percentage point above the prime rate; and
21 . sets 5% and 10% as the limits on the rate the court uses.
22 Money Appropriated in this Bill:
23 None
24 Other Special Clauses:
25 None
26 Utah Code Sections Affected:
27 AMENDS:
28 78B-5-824 , as last amended by Laws of Utah 2009, Chapter 276
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30 Be it enacted by the Legislature of the state of Utah:
31 Section 1. Section 78B-5-824 is amended to read:
32 78B-5-824. Personal injury judgments -- Interest authorized.
33 (1) In all actions brought to recover damages for personal injuries sustained by any
34 person, caused by the negligence or willful intent of another person, corporation, association,
35 or partnership, and whether the injury was fatal or otherwise, the plaintiff in the complaint may
36 claim interest on special damages [
37 giving rise to the cause of action.
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43 (2) A plaintiff seeking to recover damages for personal injury or wrongful death may
44 claim prejudgment interest if for cases classified as tier 1, pursuant to the Utah Rules of Civil
45 Procedure, the plaintiff tenders:
46 (a) a written settlement demand; and
47 (b) the amount of the demand does not exceed 1-1/3 of the amount of the judgment
48 eventually awarded at trial.
49 (3) A defendant may preclude a plaintiff's right to recover any prejudgment interest on
50 a tier 1 claim, as defined by the Utah rules of Civil Procedure, by tendering a written settlement
51 offer no later than 90 days after the defendant has received the claimant's written settlement
52 demand, or no later than 60 days after the claimant has filed initial disclosures, whichever time
53 frame comes last, and the offer is at least 2/3 of the amount of the judgment award.
54 (4) Any prejudgment interest shall be computed as simple interest accruing from the
55 date of the occurrence.
56 (5) For special damages occurring in successive years, prejudgment interest shall be
57 calculated from January 1 of each year special damages occurred. The court shall calculate
58 prejudgment interest using a per annum rate, which is two percentage points above the prime
59 rate, as published by the Board of Governors of the Federal Reserve System on the first
60 business day in January of the calendar year in which the judgment is entered, although the
61 prejudgment interest rate applied may not be lower than 5% or higher than 10%.
62 (6) Cases classified as tier 2 or tier 3 by the Utah Rules of Civil Procedure may not be
63 subject to the requirements outlined in Subsections (2) and (3).
64 (7) For special damages occurring in successive years, prejudgment interest shall be
65 calculated from January 1 of each year special damages occurred. Upon judgment, the court
66 shall calculate prejudgment interest on special damages for cases classified as tier 2 or tier 3 by
67 the Utah Rules of Civil Procedure on a per annum rate which is two percentage points above
68 the prime rate, as published by the Board of Governors of the Federal Reserve System on the
69 first business day in January of the calendar year, although the prejudgment interest rate may
70 not be lower than 5% or higher than 10%.
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72 damages for future medical expenses, loss of future wages, or loss of future earning capacity.
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