FUTURE DAMAGES - S.B. 507: FLOOR ANALYSIS

Senate Bill 507 (as reported without amendment)

Sponsor: Senator Philip E. Hoffman

Committee: Judiciary

CONTENT

The bill would amend Chapter 60 of the Revised Judicature Act (which deals with the enforcement of judgments and allows interest on money judgments), to specify that "future damages" would mean damages awarded in a civil action that the trier of fact found would accrue after the damage findings were made. (This means that prejudgment interest on future damages would not be allowed.)

(Although current law specifies that interest is not allowed on future damages from the date the complaint is filed to the date judgment is entered, that limitation applies only to personal injury verdicts, according to the Court of Appeals.)

MCL 600.6013 - Legislative Analyst: S. Lowe

FISCAL IMPACT

The bill would have an indeterminate impact on State and local units of government.

Eliminating prejudgment interest for future damages in nonpersonal injury cases would benefit governmental units that could be defendants in these cases.

Date Completed: 11-25-97 - Fiscal Analyst: B. Bowerman

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This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.