Minnesota Session Laws - 1984, Regular Session

  

                         Laws of Minnesota 1984 

                        CHAPTER 399-H.F.No. 559 
           An act relating to courts; providing for interest 
          rates on judgments; amending Minnesota Statutes 1982, 
          section 549.09, subdivision 1.  
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1982, section 549.09, 
subdivision 1, is amended to read: 
    Subdivision 1.  [WHEN OWED; RATE.] (a) When the judgment is 
for the recovery of money, including a judgment for the recovery 
of taxes, interest from the time of the verdict or report until 
judgment is finally entered shall be computed by the clerk as 
provided in this section clause (c) and added to the judgment.  
(b) Except as otherwise provided by contract or allowed by law, 
pre-verdict or pre-report interest on pecuniary damages shall be 
computed as provided in clause (c) from the time of the 
commencement of the action, except as provided herein.  If 
either party serves a written offer of settlement, the other 
party may serve a written acceptance or a written counter-offer 
within 60 days.  After that time interest on the judgment shall 
be calculated by the judge in the following manner.  The 
prevailing party shall receive interest on any judgment from the 
time the action was commenced or as to special damages from the 
time when special damages were incurred, if later than 
commencement of the action, until the time of verdict or report 
only if the amount of its offer is closer to the judgment than 
the amount of the opposing party's offer.  If the amount of the 
losing party's offer was closer to the judgment than the 
prevailing party's offer, the prevailing party shall receive 
interest only on the amount of the settlement offer or the 
judgment, whichever is less, and only from the time the action 
was commenced or as to special damages from when the special 
damages were incurred if later than commencement of the action 
until the time the settlement offer was made.  Except as 
otherwise provided by contract or allowed by law, pre-verdict or 
pre-report interest shall not be awarded on the following:  
     (1) judgments, awards, or benefits in workers' compensation 
cases, but not including third-party actions;  
     (2) judgments, decrees, or orders in dissolution, 
annulment, or legal separation actions;  
     (3) punitive damages, fines, or other damages that are 
noncompensatory in nature;  
     (4) judgments not in excess of the amount specified in 
section 487.30; and 
     (5) that portion of any verdict or report which is founded 
upon interest, or costs, disbursements, attorney fees, or other 
similar items added by the court.  (c) The interest shall be 
computed as simple interest per annum.  The rate of interest 
shall be based on the secondary market yield of one year United 
States treasury bills, calculated on a bank discount basis as 
provided in this section. 
    On or before the 20th day of December of each year the 
state court administrator shall determine the rate from the 
secondary market yield on one year United States treasury bills 
for the most recent calendar month, reported on a monthly basis 
in the latest statistical release of the board of governors of 
the federal reserve system.  This yield, rounded to the nearest 
one percent, shall be the annual interest rate during the 
succeeding calendar year; provided, however, that in no event 
shall the rate of interest be less than eight percent per 
annum.  The state court administrator shall communicate the 
interest rate to the clerks of court for their use in computing 
the interest on verdicts. 
    Sec. 2.  [EFFECTIVE DATE.] 
    Section 1 is effective August 1, 1983, and interest shall 
begin to accrue as of that date on any pending claims or causes 
of action. 
    Approved April 19, 1984