ENGR. H. B. NO. 2138 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 ENGROSSED HOUSE BILL NO. 2138 By: Kannady of the House and Rosino of the Senate An Act relating to civil procedure; amending 12 O.S. 2021, Section 2012, which relates to defenses and objections; providing procedures for default judgment under certain circumstances; clarifying effect of certain contact or communication; clarifying effect on evidentiary hearing for damages; amending 12 O.S. 2021, Section 727.1, which relates to postjudgment interest; providing for certain postjudgment interest during pendency of an appeal; 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. DEFENSES AND OBJECTIONS; WHEN AND HOW PRESENTED; BY PLEADING OR MOTION A. WHEN PRESENTED. 1. Unless a different time is prescribed by law, a defendant shall serve an answer: a. within twenty (20) days after 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 ENGR. H. B. NO. 2138 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 last day for answering if applicable; provided, a defendant may file a reservation of time which shall 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 pleading stating a cross -claim against that party shall serve an answer the reto within twenty (20) days after the service upon the par ty. 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 s ervice 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 perm itted 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 res ponsive 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 court. ENGR. H. B. NO. 2138 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 B. HOW PRESENTED. Every defense, in law or fact, to a claim for relief in any pleading, whether a claim, counterclaim, cross- claim, or third-party claim, shall be a sserted in the responsive pleading thereto if one is required, except that the following defenses may at the option of the pleader be made by motion: 1. Lack of jurisdiction over the subject matte r; 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 be granted; 7. Failure to join a party under Section 2019 of this ti tle; 8. Another action pending between the same parties fo r 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 being joined with one or more other defenses or objections in a responsive pleading or motion. If a pleading sets forth a claim for relief 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 6 of this subsection to dismiss for ENGR. H. B. NO. 2138 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 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 failur e 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 with out a hearing and the defendant shall answer within twenty (20) days after notice of the court's action. C. PRELIMINARY HEARINGS. The 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 mentioned in subsection D of this section shall be heard and determined before trial on application of any party, unless the court orders 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 demurrer to the evidence or a motion for a directed verdict. D. MOTION TO STRIKE. Up on motion made by a party before responding to a pleading o r, if no responsive pleading is permitted by this act, upon motion made by a party within twenty (20) days ENGR. H. B. NO. 2138 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 any pleading any insufficient defense. If, on a motion to strike an insufficient defense, matters 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 jo in with it any other motions herein provided for and then available to the party. If a party makes a motion under this section but omits 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 objections 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 ENGR. H. B. NO. 2138 Page 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 process, failure to state a claim upon which relief can be granted, or lack of capacity of a party to be sued is waived: a. if omitted from a motion that raises any of the defenses or objections which this sect ion 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 Section 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 indispensable under Section 2019 of this title may be made in any pleading permitted or ordered under subsection A of Section 2007 of t his title or at the trial on the merits. A defense of another action pending between the same parties for the same claim or a defense of lack of capacity of a party to sue may be made in any pleading permitted or ordered pursuant to the provisions of subs ection A of Section 2007 of this title or at the pretrial c onference. 3. Whenever it appears by suggestion of the parties or otherwise that the court lacks jurisdiction of the 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 ENGR. H. B. NO. 2138 Page 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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. G. FINAL DISMISSAL ON FA ILURE TO AMEND. On granting a motion to dismiss a claim fo r relief, the court shall grant leave to amend if the defect can be remedied 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 dismissal with prejudice shall be entered on motion except in cases of excusable neglect. In such 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 for 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 t itle or in any local or district court rule shall be construed to require either a motion or a hearing for default judgment, and no notice shall be necessary, if, after service 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 or attorney of the plaintiff shall not constitute an appearance, answer, motion, p leading, or response unless the contact or communication is in writing and is also timely filed by ENGR. H. B. NO. 2138 Page 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 the defendant in writing with the court clerk as provided in subsection A of this section. The provisions of this subsection shall not be construed to preve nt an evidentiary hearing concerning the amount of damage t o be awarded. SECTION 2. AMENDATORY 12 O.S. 2021, Section 727.1, is amended to read as follows: Section 727.1. POSTJUDGMENT INTEREST A. 1. Except as otherwise provided b y this section, all judgments of courts 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 amou nts collected on any judgment enforced during the pendency of an appeal which is subsequently overturned on appeal when restitution is paid 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 date 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 ENGR. H. B. NO. 2138 Page 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 political subdivision of this state is a beneficiary, shall be ar interest during the term of judgment at a rate prescribed pursuant to this section from the date of rendition. No judgment against this state or its political subdivisions, including counties, municipalities, school districts, and public trusts of whic h this state or a political subdivision of this state is a beneficiary, inclusive of postjudgment interest, shall exceed the total amount of liability of the governmental entity pursuant to The Governmental Tort Claims Act. C. The postjudgment interest au thorized by subsection A or subsection B of this section shall 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, and shall initially accrue at the rate in effect for the calendar year during which the judgment i s rendered until the end of the calendar year in which the judgment was rendered, 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 year, or until the judgment is paid, whichever first occurs, 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 by the Administrative Director of the Courts pursuant to subsection I of this section. For each succeeding calendar year, or part of a calendar year, during which a ENGR. H. B. NO. 2138 Page 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 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 i s liable. The postjudgment interest 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 prejudgment interest, together with postjudgment interest previo usly accrued. Interest shall accrue on a judgment in the m anner prescribed by this subsection until the judgment is satisfied or released. D. If a rate of interest is specified in a contract, the rate specified shall apply and be stated in the journal en try of judgment. The rate of interest 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 prescribed in subsection C of this section. PREJUDGMENT INTEREST E. Except as provided by subsection F of this section, beginning November 1, 2009, if a verdict for damages by reason of ENGR. H. B. NO. 2138 Page 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 personal injuries or injury to personal rights including, but not limited to, injury resulting from bodily restraint, personal insu lt, defamation, invasion of privacy, injury to personal relations, or detriment due to an act or omission of another is accepted by the trial court, the court in rendering judgment shall add interest on the verdict at a rate prescribed pursuant to subsecti on 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 i s 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 computation of prejudgment interest shall begin with the rate prescrib ed by subsection I of this section which is in effect for t he calendar year which is twenty-four (24) months after the suit resulting in the judgment was commenced. This rate shall be in effect until the end of the calendar year in which interest begins t o accrue or until the date judgment is filed, whichever first occurs. Beginning on January 1 of the next succeeding calendar year until the end of that calendar year, or until the date the judgment is filed, whichever first occurs, and for each succeeding calendar year thereafter, the prejudgment interest rate sh all be the rate in effect for judgments rendered during each calendar year as certified by the ENGR. H. B. NO. 2138 Page 12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Administrative Director of the Courts pursuant to subsection I of this section. After the computation of all prejudgment interest has been completed, the total amount of prejudgment interest shall be added to the amount of the judgment rendered pursuant to the trial of the action, and the total amount of the resulting judgment shall become the amount upon which postjudgment interest is computed 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 political subdivisions, including counties, municipalities, scho ol districts, and public trusts of which this state or a political subdivision of this state is a beneficiary, the judgment shall bear interest at the rate prescribed pursuant to subsection I of this section from the date the suit was commenced to the earl ier 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 prejudgment interest shall begin with the rate prescribed by subsec tion 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 t he judgment is rendered as expressly stated in the judgment, whichever first occurs. Beginning on January 1 of the next succeeding calendar year until the end of that calendar ENGR. H. B. NO. 2138 Page 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 year, or until the date judgment is rendered, 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 certified by the Administrative Director of the Courts pursuant to subsection I of this section. After t he computation of prejudgment interest has been completed, the amount shall be added to the amount of the judgment rendered pursuant to the trial of the action, and the total amount of the resulting judgment shall become the amount upon which postjudgment interest is computed pursuant to subsection 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 beneficiary, including the amo unt of the judgment awarded pursuant to trial of the action, shall exceed the total amount of liability of the governmental entity pursuant 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 ENGR. H. B. NO. 2138 Page 14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 re ndered establishing the existence of a lien against property and no rate of interest exists, the court shall allow prejudgment interest at a rate prescribed pursuant to subsection I of this section from the date the lien is filed to the date of verdict. I. For purposes of computing postjudgment 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 authorized by this section, interest shall be determined using a r ate equal to the average United States Treasury Bill rate o f the preceding calendar year as certified to the Administrative Director of the Courts by the State Treasurer on the first regular business day in January of each year. J. For purposes of computi ng 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 for computing postjudgment interest ENGR. H. B. NO. 2138 Page 15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 prescribed by this section shall be applicable to all judgments remaining unpaid rend ered prior to January 1, 2005. K. For purposes of computing prejudgment interest, the provisions of this section shall be applicable to all actions which are filed in the district courts on or aft er January 1, 2010, for which an award of prejudgment interest is authorized by the provisions of this section. SECTION 3. This act shall become effective November 1, 2025. Passed the House of Representatives the 11th day of March, 2025. Presiding Officer of the House of Representatives Passed the Senate the ____ day of __________, 2025. Presiding Officer of the Senate