Judgments, Orders, And Decrees -- Interest In Civil Actions
Impact
The impact of this bill on state laws is significant, as it aligns the interest rate on damages awarded in civil actions with macroeconomic indicators, specifically U.S. Treasury yields. By establishing this formula, S0633 attempts to create consistency in how interest is calculated in civil cases, which can help mitigate disputes over interest amounts. Additionally, this could have implications for tort reform, potentially leading to more predictable outcomes for both plaintiffs and defendants in civil actions. This could encourage claimants to pursue legal action when wronged, knowing that interest rates will remain favorable over time.
Summary
Bill S0633, introduced by Senator Roger Picard, aims to amend state law regarding interest accrued on judgments in civil actions. The primary focus of the bill is to set a clear framework for pre-judgment and post-judgment interest. Specifically, it states that in civil actions where damages are awarded, the clerk of the court will add interest at a rate of twelve percent (12%) per annum from the date the action is filed. This establishes a standardized rate for civil judgments, as well as a method for calculating interest based on U.S. Treasury bill yields, which adds an element of financial equivalency to the interest rates applied in these cases.
Contention
Notably, there is room for contention surrounding the proposed changes. Critics may argue that a fixed high interest rate could be burdensome for defendants, particularly in cases involving medical malpractice or other professional negligence claims where the stakes could involve significant financial penalties. By including medical malpractice cases under this law, there could be additional debates on how such provisions might deter doctors and healthcare practitioners from practicing in high-risk areas, affecting patient care. Furthermore, stakeholders from the legal profession may express differing opinions on the fairness of the new interest calculation method, particularly regarding those who rely on delayed settlements to achieve just compensation.