WEST virginia Legislature
2017 regular session
Senate Bill 54
BY Senator Ferns
[Introduced February 8, 2017; referred
to the Committee on the Judiciary]
A BILL to amend and reenact §56-6-31 of the Code of West Virginia, 1931, as amended, relating to rate of interest allowed for prejudgment and post-judgment interest.
Be it enacted by the Legislature of West Virginia:
That §56-6-31 of the Code of West Virginia, 1931, as amended, be amended and reenacted to read as follows:
ARTICLE 6. TRIAL.
§56-6-31. Interest on judgment or decree.
(a) Except where it is
otherwise provided by law, every judgment or decree for the payment of money,
whether in an action sounding in tort, contract or otherwise, entered by any
court of this state shall bear simple interest, not compounding,
from the date
thereof of the judgment or decree, whether it be
so is stated in the judgment or decree or not: Provided, That
if the judgment or decree, or any part thereof of it is for
special damages, as defined below, or for liquidated damages, the court may
order that some amount of the special or liquidated damages, shall
as calculated after the amount of any settlements, bear interest. Any
such amounts of special or liquidated damages shall bear simple interest, not
compounding, at the rate in effect for the calendar year in which the right
to bring the same shall have action has accrued, as determined by
the court and that established rate shall remain constant from that date until
the date of the judgment or decree, notwithstanding changes in the federal
reserve district discount rate in effect in subsequent years prior to the date
of the judgment or decree. Special damages includes lost wages and income,
medical expenses, damages to tangible personal property and similar out-of-pocket
expenditures, as determined by the court. If an obligation is based upon a
written agreement, the obligation shall bear a bears prejudgment
interest at the rate and terms set forth in the written agreement until
the date the judgment or decree is entered and, thereafter after
that, the judgment interest rate shall be is the same rate as
provided for in this section.
(b) Notwithstanding the
provisions of section five, article six, chapter forty-seven of this code, the
rate of interest on judgments and decrees for the payment of money, including
prejudgment interest, is
three two percentage points above the
Fifth Federal Reserve District secondary discount rate in effect on January 2,
of the year in which the judgment or decree is entered: Provided, That
the rate of prejudgment and post-judgment interest shall may not
exceed eleven seven percent per annum or be less than seven
three percent per annum. The Administrative Office of the Supreme Court
of Appeals shall annually determine the interest rate to be paid upon judgments
or decrees for the payment of money and shall take appropriate measures to
promptly notify the courts and members of the West Virginia State Bar of the rate
of interest in effect for the calendar year in question. Once the rate of
interest is established by a judgment or decree as provided in this section that
established rate shall thereafter after that remain constant for
that particular judgment or decree, notwithstanding changes in the Federal
Reserve District discount rate in effect in subsequent years.
(c) Amendments to this
section enacted by the Legislature during the
2006 2017 regular
session shall become effective January 1, 2007 2018.
NOTE: The purpose of this bill is to change the amounts of prejudgment and post-judgment interest to reflect today's economic conditions.
Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.