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HF 770

1st Engrossment - 87th Legislature (2011 - 2012) Posted on 04/27/2011 04:43pm

KEY: stricken = removed, old language. underscored = added, new language.

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Introduction Pdf Posted on 02/28/2011
1st Engrossment Pdf Posted on 04/27/2011

Current Version - 1st Engrossment

1.1A bill for an act
1.2relating to civil actions; regulating interest on verdicts, awards, and judgments;
1.3amending Minnesota Statutes 2010, section 549.09, subdivision 1.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5    Section 1. Minnesota Statutes 2010, section 549.09, subdivision 1, is amended to read:
1.6    Subdivision 1. When owed; rate. (a) When a judgment or award is for the recovery
1.7of money, including a judgment for the recovery of taxes, interest from the time of
1.8the verdict, award, or report until judgment is finally entered shall be computed by the
1.9court administrator or arbitrator as provided in paragraph (c) and added to the judgment
1.10or award.
1.11(b) Except as otherwise provided by contract or allowed by law, preverdict,
1.12preaward, or prereport interest on pecuniary damages shall be computed as provided
1.13in paragraph (c) from the time of the commencement of the action or a demand for
1.14arbitration, or the time of a written notice of claim, whichever occurs first, except as
1.15provided herein. The action must be commenced within two years of a written notice of
1.16claim for interest to begin to accrue from the time of the notice of claim. If either party
1.17serves a written offer of settlement, the other party may serve a written acceptance or a
1.18written counteroffer within 30 days. After that time, interest on the judgment or award
1.19shall be calculated by the judge or arbitrator in the following manner. The prevailing
1.20party shall receive interest on any judgment or award from the time of commencement
1.21of the action or a demand for arbitration, or the time of a written notice of claim, or as
1.22to special damages from the time when special damages were incurred, if later, until the
1.23time of verdict, award, or report only if the amount of its offer is closer to the judgment or
1.24award than the amount of the opposing party's offer. If the amount of the losing party's
2.1offer was closer to the judgment or award than the prevailing party's offer, the prevailing
2.2party shall receive interest only on the amount of the settlement offer or the judgment or
2.3award, whichever is less, and only from the time of commencement of the action or a
2.4demand for arbitration, or the time of a written notice of claim, or as to special damages
2.5from when the special damages were incurred, if later, until the time the settlement offer
2.6was made. Subsequent offers and counteroffers supersede the legal effect of earlier offers
2.7and counteroffers. For the purposes of clause (2), the amount of settlement offer must
2.8be allocated between past and future damages in the same proportion as determined by
2.9the trier of fact. Except as otherwise provided by contract or allowed by law, preverdict,
2.10preaward, or prereport interest shall not be awarded on the following:
2.11(1) judgments, awards, or benefits in workers' compensation cases, but not including
2.12third-party actions;
2.13(2) judgments or awards for future damages;
2.14(3) punitive damages, fines, or other damages that are noncompensatory in nature;
2.15(4) judgments or awards not in excess of the amount specified in section 491A.01;
2.16and
2.17(5) that portion of any verdict, award, or report which is founded upon interest, or
2.18costs, disbursements, attorney fees, or other similar items added by the court or arbitrator.
2.19(c)(1) For a judgment or award of $50,000 or less or a judgment or award for or
2.20against the state or a political subdivision of the state, regardless of the amount, The
2.21interest shall be computed as simple interest per annum. The rate of interest shall be based
2.22on the secondary market yield of one year United States Treasury bills, calculated on a
2.23bank discount basis as provided in this section.
2.24On or before the 20th day of December of each odd-numbered year the state court
2.25administrator shall determine the rate from the one-year constant maturity treasury yield
2.26for the most recent calendar month, reported on a monthly basis in the latest statistical
2.27release of the board of governors of the Federal Reserve System. This yield plus eight
2.28percentage points if the judgment or award is over $50,000, rounded to the nearest
2.29one percent, or four percent, whichever is greater, shall be the annual interest rate for
2.30verdicts entered during the succeeding calendar year two calendar years. The state court
2.31administrator shall communicate the interest rates to the court administrators and sheriffs
2.32for use in computing the interest on verdicts and shall make the interest rates available
2.33to arbitrators.
2.34This clause applies to any section that references section 549.09 by citation for the
2.35purposes of computing an interest rate on any amount owed to or by the state or a political
2.36subdivision of the state, regardless of the amount.
3.1(2) For a judgment or award over $50,000, other than a judgment or award for or
3.2against the state or a political subdivision of the state, the interest rate shall be ten percent
3.3per year until paid.
3.4(3) When a judgment creditor, or the judgment creditor's attorney or agent, has
3.5received a payment after entry of judgment, whether the payment is made voluntarily by
3.6or on behalf of the judgment debtor, or is collected by legal process other than execution
3.7levy where a proper return has been filed with the court administrator, the judgment
3.8creditor, or the judgment creditor's attorney, before applying to the court administrator
3.9for an execution shall file with the court administrator an affidavit of partial satisfaction.
3.10The affidavit must state the dates and amounts of payments made upon the judgment after
3.11the most recent affidavit of partial satisfaction filed, if any; the part of each payment that
3.12is applied to taxable disbursements and to accrued interest and to the unpaid principal
3.13balance of the judgment; and the accrued, but the unpaid interest owing, if any, after
3.14application of each payment.
3.15(d) This section does not apply to arbitrations between employers and employees
3.16under chapter 179 or 179A. An arbitrator is neither required to nor prohibited from
3.17awarding interest under chapter 179 or under section 179A.16 for essential employees.
3.18(e) For purposes of this subdivision:
3.19(1) "state" includes a department, board, agency, commission, court, or other entity
3.20in the executive, legislative, or judicial branch of the state; and
3.21(2) "political subdivision" includes a town, statutory or home rule charter city,
3.22county, school district, or any other political subdivision of the state.
3.23(e) This section does not apply to a judgment or award upon which interest is entitled
3.24to be recovered under section 60A.0811.
3.25EFFECTIVE DATE.This section is effective August 1, 2011, and applies to
3.26judgments and awards entered on or after that date.

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