H. B. 4042
(By Delegate Amores)
[Introduced January 18, 2006; 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 the 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 entered by any court of
this state shall bear interest
per annum from the date thereof,
whether it be so stated in the judgment or decree or not:
Provided, That if the judgment or decree, or any part thereof, is
for special damages, as defined below, or for liquidated damages,
the amount of such special or liquidated damages shall bear interest from the date the right to bring the same shall have
accrued, as determined by the court. 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.
The rate of interest shall be ten dollars upon one
hundred dollars per annum, and proportionately for a greater or
lesser sum, or for a longer or shorter time, notwithstanding any
other provisions of law.
(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 percentage points above the Fifth
Federal Reserve District discount rate in effect on the second day
of January of the year in which the judgment or decree is entered.
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 Association of the rate of interest in effect
for the calender 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 remain constant for that
particular judgment or decree, notwithstanding changes in the
Federal Reserve District discount rate in effect in subsequent years.
NOTE: The purpose of this bill is to provide the interest
rates for prejudgment and post-judgment awards to three percentage
points above the Fifth Federal Reserve District discount rate for
the calendar year of the judgment.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.