HOUSE BILL No. 5585 February 5, 2002, Introduced by Reps. Richner and Howell and referred to the Committee on Civil Law and the Judiciary. A bill to amend 1961 PA 236, entitled "Revised judicature act of 1961," by amending section 6013 (MCL 600.6013), as amended by 2001 PA 175. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 6013. (1) Interest is allowed on a money judgment 2 recovered in a civil action, as provided in this section. 3 However, for complaints filed on or after October 1, 1986, inter- 4 est is not allowed on future damages from the date of filing the 5 complaint to the date of entry of the judgment. As used in this 6 subsection, "future damages" means that term as defined in 7 section 6301. 8 (2) For complaints filed before June 1, 1980, in an action 9 involving other than a written instrument having a rate of 10 interest exceeding 6% per year, the interest on the judgment is 06513'02 TDR 2 1 calculated from the date of filing the complaint to June 1, 1980, 2 at the rate of 6% per year and on and after June 1, 1980, to the 3 date of satisfaction of the judgment at the rate of 12% per year 4 compounded annually. 5 (3) For a complaint filed before June 1, 1980, in an action 6 involving a written instrument having a rate of interest exceed- 7 ing 6% per year, the interest on the judgment is calculated from 8 the date of filing the complaint to the date of satisfaction of 9 the judgment at the rate specified in the instrument if the rate 10 was legal at the time the instrument was executed. However, the 11 rate after the date judgment is entered shall not exceed either 12 of the following: 13 (a) Seven percent per year compounded annually for a period 14 of time between the date judgment is entered and the date of sat- 15 isfaction of the judgment that elapses before June 1, 1980. 16 (b) Thirteen percent per year compounded annually for a 17 period of time between the date judgment is entered and the date 18 of satisfaction of the judgment that elapses after May 31, 1980. 19 (4) For a complaint filed on or after June 1, 1980, but 20 before January 1, 1987, interest is calculated from the date of 21 filing the complaint to the date of satisfaction of the judgment 22 at the rate of 12% per year compounded annually unless the judg- 23 ment is rendered on a written instrument having a higher rate of 24 interest. In that case interest is calculated at the rate speci- 25 fied in the instrument if the rate was legal at the time the 26 instrument was executed. The rate shall not exceed 13% per year 27 compounded annually after the date judgment is entered. 06513'02 3 1 (5) Except as provided in subsection (6), for a complaint 2 filed on or after January 1, 1987, but before July 1,20013 2002, if a judgment is rendered on a written instrument, interest 4 is calculated from the date of filing the complaint to the date 5 of satisfaction of the judgment at the rate of 12% per year com- 6 pounded annually, unless the instrument has a higher rate of 7 interest. In that case, interest shall be calculated at the rate 8 specified in the instrument if the rate was legal at the time the 9 instrument was executed. The rate UNDER THIS SUBSECTION shall 10 not exceed 13% per year compounded annually.after the date11judgment is entered.12 (6) For a complaint filed on or after January 1, 1987, but 13 before July 1,20012002, if the civil action has not resulted 14 in a final, nonappealable judgment as of July 1,20012002, and 15 if a judgment is or has been rendered on a written instrument 16 that does not evidence indebtedness with a specified interest 17 rate, interest is calculated as provided in subsection (8). 18 (7) For a complaint filed on or after July 1,20012002, 19 if a judgment is rendered on a written instrument evidencing 20 indebtedness with a specified interest rate, interest is calcu- 21 lated from the date of filing the complaint to the date of satis- 22 faction of the judgment at the rate specified in the instrument 23 if the rate was legal at the time the instrument was executed. 24 IF THE RATE IN THE WRITTEN INSTRUMENT IS A VARIABLE RATE, INTER- 25 EST SHALL BE FIXED AT THE RATE IN EFFECT UNDER THE INSTRUMENT AT 26 THE TIME THE COMPLAINT IS FILED. The rate UNDER THIS SUBSECTION 06513'02 4 1 shall not exceed 13% per year compounded annually.after the2date judgment is entered.3 (8) Except as otherwise provided in subsections (5) and (7) 4 and subject to subsection (13), for complaints filed on or after 5 January 1, 1987, interest on a money judgment recovered in a 6 civil action is calculated at 6-month intervals from the date of 7 filing the complaint at a rate of interest equal to 1% plus the 8 average interest rate paid at auctions of 5-year United States 9 treasury notes during the 6 months immediately preceding July 1 10 and January 1, as certified by the state treasurer, and com- 11 pounded annually, according to this section. Interest under this 12 subsection is calculated on the entire amount of the money judg- 13 ment, including attorney fees and other costs. The amount of 14 interest attributable to that part of the money judgment from 15 which attorney fees are paid is retained by the plaintiff, and 16 not paid to the plaintiff's attorney. 17 (9) If a bona fide, reasonable written offer of settlement 18 in a civil action based on tort is made by the party against whom 19 the judgment is subsequently rendered and is rejected by the 20 plaintiff, the court shall order that interest is not allowed 21 beyond the date the bona fide, reasonable written offer of set- 22 tlement is filed with the court. 23 (10) Except as otherwise provided in subsection (1) and 24 subject to subsections (11) and (12), if a bona fide, reasonable 25 written offer of settlement in a civil action based on tort is 26 not made by the party against whom the judgment is subsequently 27 rendered, or is made and is not filed with the court, the court 06513'02 5 1 shall order that interest be calculated from the date of filing 2 the complaint to the date of satisfaction of the judgment. 3 (11) If a civil action is based on medical malpractice and 4 the defendant in the medical malpractice action failed to allow 5 access to medical records as required under section 2912b(5), the 6 court shall order that interest be calculated from the date 7 notice was given in compliance with section 2912b to the date of 8 satisfaction of the judgment. 9 (12) If a civil action is based on medical malpractice and 10 the plaintiff in the medical malpractice action failed to allow 11 access to medical records as required under section 2912b(5), the 12 court shall order that interest be calculated from 182 days after 13 the date the complaint was filed to the date of satisfaction of 14 the judgment. 15 (13) Except as otherwise provided in subsection (1), if a 16 bona fide, reasonable written offer of settlement in a civil 17 action based on tort is made by a plaintiff for whom the judgment 18 is subsequently rendered and that offer is rejected and the offer 19 is filed with the court, the court shall order that interest be 20 calculated from the date of the rejection of the offer to the 21 date of satisfaction of the judgment at a rate of interest equal 22 to 2% plus the rate of interestcomputedCALCULATED under sub- 23 section (8). 24 (14) A bona fide, reasonable written offer of settlement 25 made according to this section that is not accepted within 21 26 days after the offer is made is rejected. A rejection under this 06513'02 6 1 subsection or otherwise does not preclude a later offer by either 2 party. 3 (15) As used in this section: 4 (a) "Bona fide, reasonable written offer of settlement" 5 means either of the following: 6 (i) With respect to an offer of settlement made by a 7 defendant against whom judgment is subsequently rendered, a writ- 8 ten offer of settlement that is not less than 90% of the amount 9 actually received by the plaintiff in the action through 10 judgment. 11 (ii) With respect to an offer of settlement made by a plain- 12 tiff, a written offer of settlement that is not more than 110% of 13 the amount actually received by the plaintiff in the action 14 through judgment. 15 (b) "Defendant" means a defendant, a counter-defendant, or a 16 cross-defendant. 17 (c) "Party" means a plaintiff or a defendant. 18 (d) "Plaintiff" means a plaintiff, a counter-plaintiff, or a 19 cross-plaintiff. 06513'02 Final page. TDR