SE1 SB14: Bill Text

LRB-2838/1

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September 2011 Special Session

2011 - 2012 LEGISLATURE

Senate BILL 14

October 11, 2011 - Introduced by Committee on Senate Organization, by request of Governor Scott Walker, Senator Zipperer, and Representative Farrow. Referred to Committee on Judiciary, Utilities, Commerce, and Government Operations.

SB14,1,3 An Act to renumber and amend 807.01 (4) and 815.05 (8); to amend 814.04 (4); and to create 807.01 (4) (b) and 815.05 (8) (b) of the statutes; relating to: interest rates on judgments in certain civil actions.

Analysis by the Legislative Reference Bureau

Under current law, interest accrues on a judgment involving the recovery of money at the rate of 12 percent per year from the date of entry of judgment until the judgment is paid. Also under current law, if an offer of settlement is made and rejected, the party making the offer of settlement prevails, and the judgment is greater than or equal to the offer of settlement, interest accrues on the amount recovered at the rate of 12 percent from the date of the offer of settlement until the amount is paid.

This bill changes the interest rate on judgments for the recovery of money in civil actions in tort, in actions brought by a customer to enforce rights under Wisconsin's Consumer Act, and in consumer protection actions commenced by the Department of Agriculture, Trade and Consumer Protection (DATCP) to an annual rate of 1 percent plus the prime rate in effect on the day the judgment is entered, as reported by the Federal Reserve Board, until the amount is paid. This bill also changes the interest rate on amounts recovered by a party who prevails in a civil action in tort or, if the party is a customer, in an action brought to enforce rights under the Wisconsin Consumer Act, or in a consumer protection action commenced by DATCP, after that party made an offer of settlement that was rejected, to an annual rate of 1 percent plus the prime rate, as reported by the Federal Reserve Board, in effect on the day the judgment is entered from the date of the offer of settlement until the amount is paid.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB14, s. 1 Section 1. 807.01 (4) of the statutes is renumbered 807.01 (4) (a) and amended to read:

SB14,2,8 807.01 (4) (a) If Except as provided in par. (b), if there is an offer of settlement by a party under this section which is not accepted and the party recovers a judgment which is greater than or equal to the amount specified in the offer of settlement, the party is entitled to interest at the annual rate of 12% on the amount recovered from the date of the offer of settlement until the amount is paid. Interest under this section paragraph is in lieu of interest computed under ss. 814.04 (4) and 815.05 (8).

SB14, s. 2 Section 2. 807.01 (4) (b) of the statutes is created to read:

SB14,2,19 807.01 (4) (b) If, in a civil action in tort, in an action brought by a customer to enforce rights under chs. 421, to 427, or in a consumer protection action commenced by the department of agriculture, trade and consumer protection, there is an offer of settlement by a party under this section which is not accepted and the party recovers a judgment which is greater than or equal to the amount specified in the offer of settlement, the party is entitled to interest at an annual rate equal to 1 percent plus the prime rate in effect on the day the judgment is entered, as reported by the federal reserve board in federal reserve statistical release H.15 on the amount recovered from the date of the offer of settlement until the amount is paid. Interest under this paragraph is in lieu of interest computed under ss. 814.04 (4) and 815.05 (8).

SB14, s. 3 Section 3. 814.04 (4) of the statutes is amended to read:

SB14,3,4 814.04 (4) Interest on verdict. Except as provided in s. ss. 807.01 (4) and 815.05 (8), if the judgment is for the recovery of money, interest at the rate of 12% per year from the time of verdict, decision or report until judgment is entered shall be computed by the clerk and added to the costs.

SB14, s. 4 Section 4. 815.05 (8) of the statutes is renumbered 815.05 (8) (a) and amended to read:

SB14,3,10 815.05 (8) (a) Except as provided in par. (b) and s. 807.01 (4), every execution upon a judgment for the recovery of money shall direct the collection of interest at the rate of 12% per year on the amount recovered from the date of the entry of the judgment until it is paid.

SB14, s. 5 Section 5. 815.05 (8) (b) of the statutes is created to read:

SB14,3,19 815.05 (8) (b) An execution upon a judgment for the recovery of money in a civil action founded in tort, in an action brought by a customer to enforce rights under chs. 421 to 427, or in a consumer protection action commenced by the department of agriculture, trade and consumer protection shall direct the collection of interest at an annual rate equal to 1 percent plus the prime rate in effect on the day the judgment is entered, as reported by the federal reserve board in federal reserve statistical release H.15 on the amount recovered from the date of the entry of the judgment until it is paid.

SB14, s. 6 Section 6. Initial applicability.

SB14,3,22 (1) This act first applies to an execution on a judgment entered on the effective date of this subsection.

SB14,3,23 (End)