Oklahoma 2023 2023 Regular Session

Oklahoma House Bill HB2372 Amended / Bill

Filed 02/13/2023

                     
 
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HOUSE OF REPRESENTATIVES - FLOOR VERSION 
 
STATE OF OKLAHOMA 
 
1st Session of the 59th Legislature (2023) 
 
HOUSE BILL 2372 	By: Kannady 
 
 
 
 
 
AS INTRODUCED 
 
An Act relating to civil procedure; amending 12 O.S. 
2021, Section 2012, which relates to defe nses and 
objections; clarifying procedure for default 
judgment; updating references; amending 12 O.S. 2021, 
Section 727.1, which relates to postjudgment 
interest; clarifying appl ication of interest; and 
providing an effective date . 
 
 
 
 
 
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: 
SECTION 1.     AMENDATORY     12 O.S. 2021, Section 2012, is 
amended to read as follows: 
Section 2012. A. WHEN PRESENTED.  1.  Unless a different time 
is prescribed by law, a defendant shall ser ve an answer: 
a. within twenty (20) days a fter the service of the 
summons and petition upon the defendant, 
b. within twenty (20) days after the service of the 
summons and petition upon the defendant, or within the 
last day for answering if applicable; prov ided, a 
defendant may file a reservation o f time which shall   
 
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extend the time to respond twenty (20) days from the 
last date for answering.  The filing of such a 
reservation of time waives defenses of paragraphs 2, 
3, 4, 5, 6, and 9 of subsection B of this section. 
2.  A party served with a pleadin g stating a cross-claim against 
that party shall serve an answer thereto within twenty (20) days 
after the service upon the party. 
3. The plaintiff shall serve a reply to a counterclaim in the 
answer within twenty (20) days after service of the answer or, if a 
reply is ordered by the court, within twenty (20) days after service 
of the order, unless the order otherwise directs. 
4.  The party requesting a summons to be issued or filing a 
counter-claim counterclaim or cross-claim may elect to have the 
answer served within thirty-five (35) days in lieu of the twenty 
(20) days set forth in this section. 
5.  The service of a motion p ermitted under this section or a 
motion for summary judgment alters these periods of time as follows: 
if the court denies the motion or postpones its disposition until 
the trial on the merits, the responsive pleading shall be served 
within twenty (20) days after notice of the court's action, unless a 
different time is fixed by order of the cour t. 
B. HOW PRESENTED.  Every defense, in l aw or fact, to a claim 
for relief in any pleading, whether a claim, counterclaim, cross -
claim, or third-party claim, shall b e asserted in the responsive   
 
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pleading thereto if one is required, except that the followin g 
defenses may at the option of the pleade r be made by motion: 
1.  Lack of jurisdiction over the subject matter; 
2.  Lack of jurisdiction over the person; 
3.  Improper venue; 
4.  Insufficiency of process; 
5.  Insufficiency of service of process; 
6.  Failure to state a claim upon which relief can b e granted; 
7.  Failure to join a party under Section 2019 of this title; 
8.  Another action pending between the same parties for the same 
claim; 
9.  Lack of capacity of a party to be sued; and 
10.  Lack of capacity of a party to sue. 
A motion making any of these defenses shall be made before 
pleading if a further pleading is permitted.  No defense or 
objection is waived by bein g joined with one or more other defenses 
or objections in a responsive pleading or motion.  If a pleading 
sets forth a claim for rel ief to which the adverse party is not 
required to serve a responsive pleading, the adverse party may 
assert at the trial any defense in law or fact to that claim for 
relief.  If, on a motion asserting the defense numbered in paragraph 
6 of this subsection to dismiss for failure of the pleading to state 
a claim upon which relief can be granted, matters outside the 
pleading are presented to and not excluded by the court, the motion   
 
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shall be treated as one for summary judgment and all parties shall 
be given reasonable opportunity to present all material made 
pertinent to the motion by the rules for summary judgment.  A motion 
to dismiss for failure to state a claim upon which relief can be 
granted shall separately state each omission or defect in the 
petition, and a motion that does not specify such defects or 
omissions shall be denied without a hearing and the defendant shall 
answer within twenty (20) days after notice of the court 's action. 
C.  PRELIMINARY HEARINGS.  T he defenses specifically enumerated 
in paragraphs 1 through 10 of subsection B of this section, whether 
made in a pleading or by motion, and the motion to strike ment ioned 
in subsection D of this section shall be heard and determined before 
trial on application of any party, unless the court order s that the 
hearing and determination thereof be deferred until the trial.  If 
the court determines that venue is proper, the action shall not be 
dismissed for improper venue as a result of the jury 's verdict or 
the subsequent ruling of the court on a demur rer to the evidence or 
a motion for a directed verdict. 
D.  MOTION TO STRIKE.  Upon motion made by a party before 
responding to a pleading or, if no responsive pleading is permitted 
by this act, upon motion made by a party within twenty (20) days 
after the service of the pleading upon the party or upon the court 's 
own initiative at any time, the court may order stricken from an y 
pleading any insufficient defense.  If, on a motion to strike an   
 
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insufficient defense, m atters outside the pleadings are presented to 
and not excluded by the court, the motion shall be treated as one 
for partial summary judgment and all parties shall be given 
reasonable opportunity to present all materials made pertinent to  
the motion by the rules for summary judgment. 
E.  CONSOLIDATION OF DEFENSES IN MOTION.  A party who makes a 
motion under this section may join with it any other motions herein 
provided for and then available to the party.  If a party makes a 
motion under this section but o mits therefrom any defense or 
objection then available to the party which this section permits to 
be raised by motion, the party shall not thereafter make a motion 
based on the defense or objection so omitted, except a motion as 
provided in paragraph 2 of subsection F of this section on the 
grounds there stated.  The court in its discretion may permit a 
party to amend a motion by stating additional defenses or objectio ns 
if an amendment is sought at least five (5) days before the hearing 
on the motion. 
F.  WAIVER OR PRESERVATION OF CERTAIN DEFENSES . 
1.  A defense of lack of jurisdiction over the person, improper 
venue, insufficiency of process, insufficiency of service of 
process, failure to state a claim upon which relief can be granted, 
or lack of capacity of a party to be sued is waived:   
 
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a. if omitted from a motion that raises any of the 
defenses or objections which this section permits to 
be raised by motion, or 
b. if it is not made by motion and it is not included in 
a responsive pleading or an amendment thereof 
permitted by subsection A of Sect ion 2015 of this 
title to be made as a matter of course.  A motion to 
strike an insufficient defense is waived if not raised 
as in subsection D of this section. 
2.  A defense of failure to join a party indispensabl e under 
Section 2019 of this title may be made in any pleading permitted or 
ordered under subsection A of Section 2007 of this title or at the 
trial on the merits.  A defense of another action pending between 
the same parties for the same claim or a defens e of lack of capacity 
of a party to sue ma y be made in any pleading permitted or ordered 
pursuant to the provisions of subsection A of Section 2007 of this 
title or at the pretrial conference. 
3.  Whenever it appears by suggestion of the parties or 
otherwise that the court lacks jurisdiction of th e subject matter, 
the court shall dismiss the action. 
4.  A waiver of the defense in paragraph 6 of subsection B of 
this section does not preclude a later contention that a party is 
not entitled to any relief as a matter of law, either by motion for 
summary judgment, or by demurrer or motion at or after trial.   
 
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G.  FINAL DISMISSAL ON FAILURE TO AMEND.  On granting a motion 
to dismiss a claim for relief, the court shall grant leave to amend 
if the defect can be remedi ed and shall specify the time within 
which an amended pleading shall be filed.  If the amended pleading 
is not filed within the time allowed, final judgment of dismis sal 
with prejudice shall be entered on motion except in cases of 
excusable neglect.  In su ch cases amendment shall be made by the 
party in default within a time specified by the court for filing an 
amended pleading.  Within the time allowed by the court fo r filing 
an amended pleading, a plaintiff may voluntarily dismiss the action 
without prejudice. 
H.  MOTION FOR DEFAULT JUDGMENT NOT REQUIRED IF DEFENDANT FAILS 
TO FILE RESPONSE.  Nothing in any provision of this title or in any 
local or district court rule shall be construed to require either a 
motion or a hearing for default judgment, and no n otice shall be 
necessary, if, after servic e of summons and petition, a defendant 
fails to timely file with the court clerk within twenty (20) days a 
written appearance, answer, motion, pleading, or response as 
provided in subsection A of this section .  Contact or communication 
with the plaintiff o r attorney of the plaintiff shall not constitute 
an appearance, answer, motion, pleading, or response unless the 
contact or communication is in writing and is also timely filed by 
the defendant in writing with the court clerk as provided in 
subsection A of this section.  The provisions of this subsection   
 
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shall not be construed to preve nt an evidentiary hearing concerning 
the amount of damages to be awarded. 
SECTION 2.     AMENDATORY     12 O.S. 202 1, Section 727.1, is 
amended to read as fo llows: 
Section 727.1 A.  1.  Except as otherwise provided by this 
section, all judgments of co urts of record, including costs and 
attorney fees authorized by statute or otherwise and allowed by the 
court, shall bear interest at a rate prescribed pursuant to this 
section.  Such interest shall also apply to the amounts collected on 
any judgment enforced during the pendency of an appeal which is 
subsequently overturned on appeal when restitution is pai d to the 
defendant. 
2.  Costs and attorney fees allowed by the court shall bear 
interest from the earlier of the date the judgment or order is 
pronounced, if expressly stated in the written judgment or order 
awarding the costs and attorney fees, or the dat e the judgment or 
order is filed with the court clerk. 
B.  Judgments, including costs and attorney fees authorized by 
statute or otherwise and allowed by the court, against this state or 
its political subdivisions, including counties, municipalities, 
school districts, and public trusts of which this state or a 
political subdivision of this state is a beneficiary, shall bear 
interest during the term of judg ment at a rate prescribed pursuant 
to this section from the date of rendition.  No judgment against   
 
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this state or its political subdivisions, including counties, 
municipalities, school districts, and public trusts of which this 
state or a political subdivi sion of this state is a beneficiary, 
inclusive of postjudgment interest, shall exceed the total amount of 
liability of the governmental entity pursuant to The Go vernmental 
Tort Claims Act. 
C.  The postjudgment interest authorized by subsection A or 
subsection B of this section shall accrue from the earlier of the 
date the judgment is rendered as expressly s tated in the judgment, 
or the date the judgment is filed w ith the court clerk, and shall 
initially accrue at the rate in effect for the calendar year dur ing 
which the judgment is rendered until the end of the calendar year in 
which the judgment was rendere d, or until the judgment is paid, 
whichever first occurs. Beginning on January 1 of the next 
succeeding calendar year until the end of that calendar yea r, or 
until the judgment is paid, whichever first occurs, the judgment, 
together with postjudgment inte rest previously accrued, shall bear 
interest at the rate i n effect for judgments rendered during that 
calendar year as certified by the Administrative Di rector of the 
Courts pursuant to subsection I of this section.  For each 
succeeding calendar year, or p art of a calendar year, during which a 
judgment remains unpaid, the judgment, together with postjudgment 
interest previously accrued, shall bear interest at the rate in 
effect for judgments rendered during that calendar year as certified   
 
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by the Administrative Director of the Courts pursuant to subsection 
I of this section.  A separate computation using the interest rate 
in effect for judgments as provided by subsection I of this section 
shall be made for each calendar year, or part of a calendar year, 
during which the judgment remains unpaid in order to determine the 
total amount of interest for which the judgment debtor is liable.  
The postjudgment interes t rate for each calendar year or part of a 
calendar year a judgment remains unpaid shall be multiplied by the 
original amount of the judgment, including any prej udgment interest, 
together with postjudgment interest previously accrued.  Interest 
shall accrue on a judgment in the manner prescribed by this 
subsection until the judgment is satisfied or released . 
D.  If a rate of interest is specified in a contract, th e rate 
specified shall apply and be stated in the journal entry of 
judgment.  The rate of inter est shall not exceed the lawful rate for 
that obligation.  Postjudgment interest shall be calculated at the 
contractual rate and accrued in the same manner as pr escribed in 
subsection C of this section. 
PREJUDGMENT INTEREST 
E.  Except as provided by subsec tion F of this section, 
beginning November 1, 2009, if a verdict for damages by reason of 
personal injuries or injury to personal rights including, but not 
limited to, injury resulting from bodily restraint, personal insult, 
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detriment due to an act or omission of another is accepted by the 
trial court, the court in rendering judgment shall add inter est on 
the verdict at a rate prescribed pursuant to subsection I of this 
section from the date which is twenty-four (24) months after the 
suit resulting in the judgment was commenced to the earlier of the 
date the verdict is accepted by the trial court as expressly stated 
in the judgment, or the date the judgment is filed with the court 
clerk.  No prejudgment interest shall begin to accrue until twenty -
four (24) months after the suit resulting in the judgment was 
commenced.  The interest rate for computatio n of prejudgment 
interest shall begin with the rate prescribed by subsection I of 
this section which is in effect for the calendar year which is 
twenty-four (24) months after the suit resulting in t he judgment was 
commenced.  This rate shall be in effect u ntil the end of the 
calendar year in which interest begins to accrue or until the date 
judgment is filed, whichever first occurs.  Beginning on January 1 
of the next succeeding calendar year until t he end of that calendar 
year, or until the date the judgme nt is filed, whichever first 
occurs, and for each succeeding calendar year thereafter, the 
prejudgment interest rate shall be the rate in effect for judgments 
rendered during each calendar year as c ertified by the 
Administrative Director of the Courts purs uant to subsection I of 
this section.  After the computation of all prejudgment interest has 
been completed, the total amount of prejudgment interest shall be   
 
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added to the amount of the judgment ren dered pursuant to the trial 
of the action, and the total a mount of the resulting judgment shall 
become the amount upon which postjudgment interest is com puted 
pursuant to subsection A of this section. 
F.  If a verdict of the type described by subsection E of this 
section is rendered against this state or its poli tical 
subdivisions, including counties, municipalities, school districts, 
and public trusts of which this state or a political subdivision of 
this state is a beneficiary, the judgment shall bear int erest at the 
rate prescribed pursuant to subsection I of t his section from the 
date the suit was commenced to the earlier of the date the verdict 
is accepted by the trial court as expressly stated in the judgment 
or the date the judgment is filed with the court clerk.  The 
interest rate for computation of prejudg ment interest shall begin 
with the rate prescribed by subsection I of this section which is in 
effect for the calendar year in which the suit resulting in the 
judgment is commenced.  This rate shall be in effect until the end 
of the calendar year in which the suit resulting in judgment was 
filed or until the date the judgment is rendered as expressl y stated 
in the judgment, whichever first occurs.  Beginning on January 1 of 
the next succeeding calend ar year until the end of that calendar 
year, or until the date judgment is rendered, whichever first 
occurs, and for each succeeding calendar year therea fter, the 
prejudgment interest rate shall be the rate in effect for judgments   
 
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rendered during each cale ndar year as certified by the 
Administrative Director of t he Courts pursuant to subsection I of 
this section.  After the computation of prejudgment inter est has 
been completed, the amount shall be added to the amount of the 
judgment rendered pursuant to th e trial of the action, and the total 
amount of the resulti ng judgment shall become the amount upon which 
postjudgment interest is computed pursuant to su bsection B of this 
section.  No award of prejudgment interest against this state or its 
political subdivisions, including counties, municipalities, school 
districts, and public trusts of which this state or a political 
subdivision of this state is a benefi ciary, including the amount of 
the judgment awarded pursuant to trial of the action, shall exceed 
the total amount of liability of the governmental entity pursua nt to 
The Governmental Tort Claims Act. 
G.  If exemplary or punitive damages are awarded in an action 
for personal injury or injury to personal rights including, but not 
limited to, injury resulting from bodily restraint, personal insult, 
defamation, invasion of privacy, injury to personal relations, or 
detriment due to an act or omission of another , the interest on that 
award shall begin to accrue from the earlier of the date the 
judgment is rendered as expressly stated in the judgment, or the 
date the judgment is filed with the court clerk. 
H.  If a judgment is rendered establishing the existence o f a 
lien against property and no rate of interest exists, the court   
 
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shall allow prejudgment interest at a rate prescribed pursuant to 
subsection I of this sectio n from the date the lien is filed to the 
date of verdict. 
I.  For purposes of computing postjud gment interest as 
authorized by this section, interest shall be the prime rate, as 
listed in the first edition of the Wall Street Journal published for 
each calendar year and as certified to the Administrative Director 
of the Courts by the State Treasurer on the first regular business 
day following publication in January of each year, plus two percent 
(2%). For purposes of computing prejudgment interest as author ized 
by this section, interest shall be determined using a rate equal to 
the average United Sta tes Treasury Bill rate of the preceding 
calendar year as certified to the Administrative Director of th e 
Courts by the State Treasurer on the first regular busin ess day in 
January of each year. 
J.  For purposes of computing postjudgment interest, the 
provisions of this section shall be applicable to all judgments of 
the district courts rendered on or after January 1, 2005. Effective 
January 1, 2005, the method fo r computing postjudgment interest 
prescribed by this section shall be applicable to all judgmen ts 
remaining unpaid rendered prior to January 1, 2005. 
K.  For purposes of computing prejudgment intere st, the 
provisions of this section shall be applicable to all actions which 
are filed in the district courts on or after January 1, 2010, for   
 
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which an award of prejudgment interest is authorized by the 
provisions of this section. 
SECTION 3. This act shall become effective November 1, 202 3. 
 
COMMITTEE REPORT BY: COMMITTEE ON JUDICIARY - CIVIL, dated 
02/09/2023 - DO PASS.