Oklahoma 2023 Regular Session

Oklahoma House Bill HB2372 Compare Versions

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29-SENATE FLOOR VERSION
30-April 11, 2023
31-AS AMENDED
32-
3328 ENGROSSED HOUSE
3429 BILL NO. 2372 By: Kannady of the House
3530
3631 and
3732
3833 Howard of the Senate
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4035
4136
4237
43-[ civil procedure - defenses and objections -
44-judgment - interest - effective date ]
38+
39+
40+An Act relating to civil procedure; amending 12 O.S.
41+2021, Section 2012, which relates to defe nses and
42+objections; clarifying procedure for default
43+judgment; updating references; amending 12 O.S. 2021,
44+Section 727.1, which relates to postjudgment
45+interest; clarifying appl ication of interest; and
46+providing an effective date .
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4750
4851
4952 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
5053 SECTION 1. AMENDATORY 12 O.S. 2021, Section 2012, is
5154 amended to read as follows:
5255 Section 2012.
5356 DEFENSES AND OBJECTIONS; WHEN AND HOW PRESENTED;
5457 BY PLEADING OR MOTION
5558 A. WHEN PRESENTED. 1. Unless a different time is prescribed
5659 by law, a defendant shall serve an answer:
5760 a. within twenty (20) days a fter the service of the
5861 summons and petition upon the defendant,
5962 b. within twenty (20) days after the service of the
6063 summons and petition upon the defendant, or within the
61-last day for answering if appl icable; provided, a
62-defendant may file a reservation o f time which shall
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90+last day for answering if appl icable; provided, a
91+defendant may file a reservation o f time which shall
9092 extend the time to respond twenty (20) days from the
9193 last date for answering. The filing of such a
9294 reservation of time waives defenses of paragraphs 2,
9395 3, 4, 5, 6, and 9 of subsectio n B of this section.
9496 2. A party served with a pleadin g stating a cross-claim against
9597 that party shall serve an answer thereto within twenty (20) days
9698 after the service upon the party.
9799 3. The plaintiff shall serve a reply to a counterclaim in the
98100 answer within twenty (20) days after service of the answer or, if a
99101 reply is ordered by the court, within twenty (20) days after service
100102 of the order, unless the order otherwise directs.
101103 4. The party requesting a summons to be issued or filing a
102104 counter-claim counterclaim or cross-claim may elect to have the
103105 answer served within thirty-five (35) days in lieu of the twenty
104106 (20) days set forth in this section.
105107 5. The service of a motion p ermitted under this section or a
106108 motion for summary judgment alters these peri ods of time as follows:
107109 if the court denies the motion or postpones its disposition until
108110 the trial on the merits, the responsive pleading shall be served
109111 within twenty (20) days after notice of the court's action, unless a
110112 different time is fixed by order of the court.
111-B. HOW PRESENTED. Every defense, in l aw or fact, to a claim
112-for relief in any pleading, whether a claim, counterclaim, cross -
113-claim, or third-party claim, shall b e asserted in the responsive
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139+B. HOW PRESENTED. Every defense, in l aw or fact, to a claim
140+for relief in any pleading, whether a claim, counterclaim, cross -
141+claim, or third-party claim, shall b e asserted in the responsive
141142 pleading thereto if one is required, except that the following
142143 defenses may at the option of the pleade r be made by motion:
143144 1. Lack of jurisdiction over the subject matter;
144145 2. Lack of jurisdiction over the person;
145146 3. Improper venue;
146147 4. Insufficiency of process;
147148 5. Insufficiency of service of process ;
148149 6. Failure to state a claim upon which relief can b e granted;
149150 7. Failure to join a party under Section 2019 of this title;
150151 8. Another action pending between the same parties for the same
151152 claim;
152153 9. Lack of capacity of a party to be sued; and
153154 10. Lack of capacity of a party to sue.
154155 A motion making any of these defenses shall be made before
155156 pleading if a further pleading is permitted. No defense or
156157 objection is waived by bein g joined with one or more other defenses
157158 or objections in a responsive pleadin g or motion. If a pleading
158159 sets forth a claim for rel ief to which the adverse party is not
159160 required to serve a responsive pleading, the adverse party may
160161 assert at the trial any defense in law or fact to that claim for
161162 relief. If, on a motion asserting t he defense numbered in paragraph
162-6 of this subsection to dismiss for failure of the pleading to state
163-a claim upon which relief can be granted, matters outside the
164-pleading are presented to and not excluded by the court, the motion
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189+6 of this subsection to dismiss for failure of the pleading to state
190+a claim upon which relief can be granted, matters outside the
191+pleading are presented to and not excluded by the court, the motion
192192 shall be treated as one for summary judgment and all parties shall
193193 be given reasonable opportunity to present all material made
194194 pertinent to the motion by the rules for summary judgment. A motion
195195 to dismiss for failure to state a claim upon which relief can be
196196 granted shall separately state each omission or defect in the
197197 petition, and a motion that does not specify such defects or
198198 omissions shall be denied without a hearing and the defendant shall
199199 answer within twenty (20) days after notice of the court 's action.
200200 C. PRELIMINARY HEARINGS. The defenses specifically enumerated
201201 in paragraphs 1 through 10 of subsection B of this section, whether
202202 made in a pleading or by motion, and the motion to strike ment ioned
203203 in subsection D of this section shall be heard and determined before
204204 trial on application of any party, unless the court order s that the
205205 hearing and determination thereof be deferred until the trial. If
206206 the court determines that venue is proper, the action shall not be
207207 dismissed for improper venue as a result of the jury 's verdict or
208208 the subsequent ruling of the court on a demur rer to the evidence or
209209 a motion for a directed verdict.
210210 D. MOTION TO STRIKE. Upon motion made by a party before
211211 responding to a pleading or, if no responsive pleading is permitted
212212 by this act, upon mo tion made by a party within twenty (20) days
213-after the service of the pleading upon the party or upon the court 's
214-own initiative at any time, the court may order stricken from an y
215-pleading any insufficient defense. If, on a motion to strike an
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239+after the service of the pleading upon the party or upon the court 's
240+own initiative at any time, the court may order stricken from an y
241+pleading any insufficient defense. If, on a motion to strike an
243242 insufficient defense, matters outside the pleadings are presented to
244243 and not excluded by the court, the motion shall be treated as one
245244 for partial summary judgment and all parties shall be given
246245 reasonable opportunity to present all materials made pertinent to
247246 the motion by the rules for summary judgment.
248247 E. CONSOLIDATION OF DEFENSES IN MOTION. A party who makes a
249248 motion under this section may join with it any other motions herein
250249 provided for and then available to the party. If a party makes a
251250 motion under this section but omits therefrom any defense or
252251 objection then available to the party which this section permits to
253252 be raised by motion, the party shall not thereafter make a motion
254253 based on the defense or objection so omitted, except a motion as
255254 provided in paragraph 2 of subsection F of this section on the
256255 grounds there stated. The court in its discretion may permit a
257256 party to amend a motion by stating additional defenses or objectio ns
258257 if an amendment is sought at least five (5) days before the hearing
259258 on the motion.
260259 F. WAIVER OR PRESERVATION OF CERTAIN DEFENSES .
261260 1. A defense of lack of jurisdiction over the person, improper
262261 venue, insufficiency of process, insufficiency of service of
263-process, failure to state a claim upon which relief can be granted,
264-or lack of capacity of a party to be sued is waived:
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288+process, failure to state a claim upon which relief can be granted,
289+or lack of capacity of a party to be sued is waived:
292290 a. if omitted from a motion that raises any of the
293291 defenses or objections which this section permits to
294292 be raised by motion, or
295293 b. if it is not made by motion and it is not included in
296294 a responsive pleading or an amendment thereof
297295 permitted by subsection A of Sect ion 2015 of this
298296 title to be made as a matter of course. A motion to
299297 strike an insufficient defense is waived if not raised
300298 as in subsection D of this section.
301299 2. A defense of failure to join a party indispensable under
302300 Section 2019 of this title may be made in any pleading permitted or
303301 ordered under subsection A of Section 2007 of this title or at the
304302 trial on the merits. A defense of another action pending between
305303 the same parties for the same claim or a defense of lack of capacity
306304 of a party to sue ma y be made in any pleading permitted or ordered
307305 pursuant to the provisions of subsection A of Section 2007 of this
308306 title or at the pretrial conference.
309307 3. Whenever it appears by suggestion of the partie s or
310308 otherwise that the court lacks jurisdiction of th e subject matter,
311309 the court shall dismiss the action.
312310 4. A waiver of the defense in paragraph 6 of subsection B of
313311 this section does not preclude a later contention that a party is
314-not entitled to any relief as a matter of law, either by motion for
315-summary judgment, or by demurrer or motion at or after trial.
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338+not entitled to any relief as a matter of law, either by motion for
339+summary judgment, or by demurrer or motion at or after trial.
343340 G. FINAL DISMISSAL ON FAILURE TO AMEND. On granting a motion
344341 to dismiss a claim for relief, the court shall grant leave to amend
345342 if the defect can be remedied and shall specify the time within
346343 which an amended pleading shall be filed. If the amended pleading
347344 is not filed within the time allowed, final judgment of dismis sal
348345 with prejudice shall be entered on motion except in cases of
349346 excusable neglect. In such cases amendment shall be made by the
350347 party in default within a time specified by the court for filing an
351348 amended pleading. Within the time allowed by the court fo r filing
352349 an amended pleading, a plaintiff may voluntarily dismiss the action
353350 without prejudice.
354351 H. MOTION FOR DEFAULT JUDGMENT NOT REQUIRED IF DEFENDANT FAILS
355352 TO FILE RESPONSE. Nothing in any provision of this title or in any
356353 local or district court rule shall be construed to require either a
357354 motion or a hearing for default judgme nt, and no notice shall be
358355 necessary, if, after servic e of summons and petition, a defendant
359356 fails to timely file with the court clerk within twenty (20) days a
360357 written appearance, answer, motion, pleading, or response as
361358 provided in subsection A of this s ection. Contact or communication
362359 with the plaintiff o r attorney of the plaintiff shall not constitute
363360 an appearance, answer, motion, pleading, or response unless the
364361 contact or communication is in writing and is also timely filed by
365-the defendant in writing with the court clerk as provided in
366-subsection A of this section. The provisions of this subsection
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388+the defendant in writing with the court clerk as provided in
389+subsection A of this section. The provisions of this subsection
394390 shall not be construed to preve nt an evidentiary hearing concerning
395391 the amount of damages to be awarded.
396392 SECTION 2. AMENDATORY 12 O.S. 2021, Section 727.1, is
397393 amended to read as fo llows:
398394 Section 727.1
399395 POSTJUDGMENT INTEREST
400396 A. 1. Except as otherwise provided by this section, all
401397 judgments of courts of record, including costs and attorney fees
402398 authorized by statute or otherwise and allowed by the court, shall
403399 bear interest at a rate prescribed pursuant to this section. Such
404400 interest shall also apply to the amounts collected on any judg ment
405401 enforced during the pendency of an appeal which is subsequently
406402 overturned on appeal when restitution is paid to the defendant.
407403 2. Costs and attorney fees allowed by the court shall bear
408404 interest from the earlier of the date the judgment or order is
409405 pronounced, if expressly stated in the written judgment or order
410406 awarding the costs and attorn ey fees, or the date the judgment or
411407 order is filed with the court clerk.
412408 B. Judgments, including costs and attorney fees authorized by
413409 statute or otherwise and allowed by the court, against this state or
414410 its political subdivisions, including counties, mu nicipalities,
415411 school districts, and public trusts of which this state or a
416-political subdivision of this state is a beneficiary, shall bear
417-interest during the term of judg ment at a rate prescribed pursuant
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438+political subdivision of this state is a beneficiary, shall bear
439+interest during the term of judg ment at a rate prescribed pursuant
445440 to this section from the date of rendition. No j udgment against
446441 this state or its political subdivisions, including counties,
447442 municipalities, school districts, and public trusts of which this
448443 state or a political subdivi sion of this state is a beneficiary,
449444 inclusive of postjudgment interest, shall excee d the total amount of
450445 liability of the governmental entity pursuant to The Go vernmental
451446 Tort Claims Act.
452447 C. The postjudgment interest authorized by subsection A or
453448 subsection B of this section shall accrue from the earlier of the
454449 date the judgment is rend ered as expressly stated in the judgment,
455450 or the date the judgment is filed w ith the court clerk, and shall
456451 initially accrue at the rate in effect for the calendar year dur ing
457452 which the judgment is rendered until the end of the calendar year in
458453 which the judgment was rendered, or until the judgment is paid,
459454 whichever first occurs. Beginning on January 1 of the next
460455 succeeding calendar year until the end of that calendar yea r, or
461456 until the judgment is paid, whichever first occurs, the judgment,
462457 together with postjudgment interest previously accrued, shall bear
463458 interest at the rate i n effect for judgments rendered during that
464459 calendar year as certified by the Administrative Di rector of the
465460 Courts pursuant to subsection I of this section. For each
466461 succeeding calendar year, or part of a calendar year, during which a
467-judgment remains unpaid, the judgment, together with postjudgment
468-interest previously accrued, shall bear interest at the rate in
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488+judgment remains unpaid, the judgment, together with postjudgment
489+interest previously accrued, shall bear interest at the rate in
496490 effect for judgments rendered during that calendar year as certified
497491 by the Administrative Director of the Courts pursuant to subsection
498492 I of this section. A separate computation using the interest rate
499493 in effect for judgments as provided by subsection I of this section
500494 shall be made for each calendar year, or part of a c alendar year,
501495 during which the judgment remains unpaid in order to determine the
502496 total amount of interest for which the judgment debtor is liable.
503497 The postjudgment interes t rate for each calendar year or part of a
504498 calendar year a judgment remains unpaid s hall be multiplied by the
505499 original amount of the judgment, including any prej udgment interest,
506500 together with postjudgment interest previously accrued. Interest
507501 shall accrue on a judgment in the manner prescribed by this
508502 subsection until the judgment is sa tisfied or released.
509503 D. If a rate of interest is specified in a contract, th e rate
510504 specified shall apply and be stated in the journal entry of
511505 judgment. The rate of inter est shall not exceed the lawful rate for
512506 that obligation. Postjudgment interest sha ll be calculated at the
513507 contractual rate and accrued in the same manner as pr escribed in
514508 subsection C of this section.
515509 PREJUDGMENT INTEREST
516510 E. Except as provided by subsec tion F of this section,
517511 beginning November 1, 2009, if a verdict for damages by reas on of
518-personal injuries or injury to personal rights including, but not
519-limited to, injury resulting from bodily restraint, personal insult,
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538+personal injuries or injury to personal rights including, but not
539+limited to, injury resulting from bodily restraint, personal insult,
547540 defamation, invasion of privacy , injury to personal relations, or
548541 detriment due to an act or omission of another is accepted by the
549542 trial court, the court in rendering judgment shall add inter est on
550543 the verdict at a rate prescribed pursuant to subsection I of this
551544 section from the date which is twenty-four (24) months after the
552545 suit resulting in the judgment was commen ced to the earlier of the
553546 date the verdict is accepted by the trial court as expressly stated
554547 in the judgment, or the date the judgment is filed with the court
555548 clerk. No prejudgment interest shall begin to accrue until twenty -
556549 four (24) months after the su it resulting in the judgment was
557550 commenced. The interest rate for computatio n of prejudgment
558551 interest shall begin with the rate prescribed by subsection I of
559552 this section which is in effect for the calendar year which is
560553 twenty-four (24) months after the suit resulting in the judgment was
561554 commenced. This rate shall be in effect u ntil the end of the
562555 calendar year in which interest begins to accrue or until the date
563556 judgment is filed, whichever first occurs. Beginning on January 1
564557 of the next succeeding ca lendar year until the end of that calendar
565558 year, or until the date the judgme nt is filed, whichever first
566559 occurs, and for each succeeding calendar year thereafter, the
567560 prejudgment interest rate shall be the rate in effect for judgments
568561 rendered during each calendar year as certified by the
569-Administrative Director of the Courts purs uant to subsection I of
570-this section. After the computation of all prejudgment interest has
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588+Administrative Director of the Courts purs uant to subsection I of
589+this section. After the computation of all prejudgment interest has
598590 been completed, the total amount of prejudgment interest shall be
599591 added to the amount of the judgment rendered pursuant to the trial
600592 of the action, and the total a mount of the resulting judgment shall
601593 become the amount upon which postjudgment interest is com puted
602594 pursuant to subsection A of this section.
603595 F. If a verdict of the type describ ed by subsection E of this
604596 section is rendered against this state or its poli tical
605597 subdivisions, including counties, municipalities, school districts,
606598 and public trusts of which this state or a political subdivision of
607599 this state is a beneficiary, the judg ment shall bear interest at the
608600 rate prescribed pursuant to subsection I of t his section from the
609601 date the suit was commenced to the earlier of the date the verdict
610602 is accepted by the trial court as expressly stated in the judgment
611603 or the date the judgment is filed with the court clerk. The
612604 interest rate for computation of prejudg ment interest shall begin
613605 with the rate prescribed by subsection I of this section which is in
614606 effect for the calendar year in which the suit resulting in the
615607 judgment is commence d. This rate shall be in effect until the end
616608 of the calendar year in which the suit resulting in judgment was
617609 filed or until the date the judgment is rendered as expressl y stated
618610 in the judgment, whichever first occurs. Beginning on January 1 of
619611 the next succeeding calendar year until the end of that calendar
620-year, or until the date judgment is rendered, whichever first
621-occurs, and for each succeeding calendar year therea fter, the
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638+year, or until the date judgment is rendered, whichever first
639+occurs, and for each succeeding calendar year therea fter, the
649640 prejudgment interest rate shall be the rate in effect for judgments
650641 rendered during each calendar year as certified by the
651642 Administrative Director of t he Courts pursuant to subsection I of
652643 this section. After the computation of prejudgment inter est has
653644 been completed, the amount shall be added to the amount of the
654645 judgment rendered pursuant to the trial of the action, and the total
655646 amount of the resulti ng judgment shall become the amount upon which
656647 postjudgment interest is computed pursuant to su bsection B of this
657648 section. No award of prejudgment interest against this state or its
658649 political subdivisions, including counties, municipalities, school
659650 districts, and public trusts of which this state or a political
660651 subdivision of this state is a benefi ciary, including the amount of
661652 the judgment awarded pursuant to trial of the action, shall exceed
662653 the total amount of liability of the governmental entity pursua nt to
663654 The Governmental Tort Claims Act.
664655 G. If exemplary or punitive damages are awarded in an action
665656 for personal injury or injury to personal rights including, but not
666657 limited to, injury resulting from bodily restraint, personal insult,
667658 defamation, invasion of privacy, injury to personal relations, or
668659 detriment due to an act or omission of another , the interest on that
669660 award shall begin to accrue from the earlier of the date the
670-judgment is rendered as expressly stated in the judgment, or the
671-date the judgment is filed with the court clerk.
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687+judgment is rendered as expressly stated in the judgment, or the
688+date the judgment is filed with the court clerk.
699689 H. If a judgment is rendered establishing the existence o f a
700690 lien against property and no rate of interest exists, the court
701691 shall allow prejudgment interest at a rate prescribed pursuant to
702692 subsection I of this sectio n from the date the lien is filed to the
703693 date of verdict.
704694 I. For purposes of computing postjud gment interest as
705695 authorized by this section, interest shall be the prime rate, as
706696 listed in the first edition of the Wall Street Journal published for
707697 each calendar year and as certified to the Administrative Director
708698 of the Courts by the State Treasurer on the first regular business
709699 day following publication in January of each year, plu s two percent
710700 (2%). For purposes of computing prejudgment interest as author ized
711701 by this section, interest shall be determined using a rate equal to
712702 the average United Sta tes Treasury Bill rate of the preceding
713703 calendar year as certified to the Administra tive Director of the
714704 Courts by the State Treasurer on the first regular busin ess day in
715705 January of each year.
716706 J. For purposes of computing postjudgment interest, the
717707 provisions of this section shall be applicable to all judgments of
718708 the district courts re ndered on or after January 1, 2005. Effective
719709 January 1, 2005, the method fo r computing postjudgment interest
720-prescribed by this section shall be applicable to all judgmen ts
721-remaining unpaid rendered prior to January 1, 2005.
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736+prescribed by this section shall be applicable to all judgmen ts
737+remaining unpaid rendered prior to January 1, 2005.
749738 K. For purposes of computing prejudgment interest, the
750739 provisions of this section shall be applicable to all actions which
751740 are filed in the district courts on or after January 1, 2010, for
752741 which an award of prejudgment interest is authorized by the
753742 provisions of this section.
754743 SECTION 3. This act shall become effective November 1, 202 3.
755-COMMITTEE REPORT BY: COMMITTEE ON JUDICIARY
756-April 11, 2023 - DO PASS AS AMENDED
744+Passed the House of Repr esentatives the 9th day of March, 2023.
745+
746+
747+
748+
749+ Presiding Officer of the House
750+ of Representatives
751+
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754+Passed the Senate the ___ day of __________, 2023.
755+
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759+ Presiding Officer of the Senate
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