HOUSE BILL No. 4448 March 8, 2001, Introduced by Reps. Richner, Howell, Bisbee, Koetje and Sanborn 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 1993 PA 78. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 6013. (1) Interestshall beIS allowed on a money 2 judgment recovered in a civil action, as provided in this 3 section. However, for complaints filed on or after October 1, 4 1986, interestshallIS notbeallowed on future damages from 5 the date of filing the complaint to the date of entry of the 6 judgment. As used in this subsection, "future damages" means 7 that term as defined in 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 H02152'01 * LTB 2 1shall beIS calculated from the date of filing the complaint to 2 June 1, 1980, at the rate of 6% per year and on and after June 1, 3 1980, to the date of satisfaction of the judgment at the rate of 4 12% per year compounded annually. 5 (3) ForcomplaintsA COMPLAINT filed before June 1, 1980, 6 in an action involving a written instrument having a rate of 7 interest exceeding 6% per year, the interest on the judgment 8shall beIS calculated from the date of filing the complaint to 9 the date of satisfaction of the judgment at the rate specified in 10 the instrument if the rate was legal at the time the instrument 11 was executed. However, the rate after the date judgment is 12 entered shall not exceed EITHER OF the following: 13 (a) Seven percent per year compounded annually foranyA 14 period of time between the date judgment is entered and the date 15 of satisfaction of the judgment that elapses before June 1, 16 1980. 17 (b) Thirteen percent per year compounded annually forany18 A period of time between the date judgment is entered and the 19 date of satisfaction of the judgment that elapses after May 31, 20 1980. 21 (4) ForcomplaintsA COMPLAINT filed on or after June 1, 22 1980, but before January 1, 1987, interestshall beIS calcu- 23 lated from the date of filing the complaint to the date of satis- 24 faction of the judgment at the rate of 12% per year compounded 25 annually unless the judgment is rendered on a written instrument 26 having a higher rate of interest. In that case interestshall27beIS calculated at the rate specified in the instrument if the H02152'01 * 3 1 rate was legal at the time the instrument was executed. The rate 2 shall not exceed 13% per year compounded annually after the date 3 judgment is entered. 4 (5) ForcomplaintsA COMPLAINT filed on or after 5 January 1, 1987, if a judgment is rendered on a written instru- 6 ment EVIDENCING INDEBTEDNESS WITH A SPECIFIED INTEREST RATE, 7 interestshall beIS calculated from the date of filing the 8 complaint to the date of satisfaction of the judgment at the rate 9 of 12% per year compounded annually, unless the instrument has a 10 higher rate of interest. In that case interestshall beIS 11 calculated at the rate specified in the instrument if the rate 12 was legal at the time the instrument was executed. The rate 13 shall not exceed 13% per year compounded annually after the date 14 judgment is entered. 15 (6) Except as otherwise provided in subsection (5) and 16 subject to subsection (11), for complaints filed on or after 17 January 1, 1987, interest on a money judgment recovered in a 18 civil actionshall beIS calculated at 6-month intervals from 19 the date of filing the complaint at a rate of interestthat is20 equal to 1% plus the average interest rate paid at auctions of 21 5-year United States treasury notes during the 6 months immedi- 22 ately preceding July 1 and January 1, as certified by the state 23 treasurer, and compounded annually,pursuantACCORDING to this 24 section. Interest under this subsectionshall beIS calculated 25 on the entire amount of the money judgment, including attorney 26 fees and other costs.However, theTHE amount of interest 27 attributable to that part of the money judgment from which H02152'01 * 4 1 attorney fees are paidshall beIS retained by the plaintiff, 2 and not paid to the plaintiff's attorney. 3 (7) If a bona fide, reasonable written offer of settlement 4 in a civil action based on tort is made by the party against whom 5 the judgment is subsequently rendered and is rejected by the 6 plaintiff, the court shall order that interest IS notbe7 allowed beyond the date the bona fide, reasonable written offer 8 of settlement is filed with the court. 9 (8) Except as otherwise provided in subsection (1) and 10 subject to subsections (9) and (10), if a bona fide, reasonable 11 written offer of settlement in a civil action based on tort is 12 not made by the party against whom the judgment is subsequently 13 rendered, or is made and is not filed with the court, the court 14 shall order that interest be calculated from the date of filing 15 the complaint to the date of satisfaction of the judgment. 16 (9) If a civil action is based on medical malpractice and 17 the defendant in the medical malpractice action failed to allow 18 access to medical records as required under section2912b(6)19 2912B(5), the court shall order that interest be calculated from 20 the date notice was given in compliance with section 2912b to the 21 date of satisfaction of the judgment. 22 (10) If a civil action is based on medical malpractice and 23 the plaintiff in the medical malpractice action failed to allow 24 access to medical records as required under section2912b(6)25 2912B(5), the court shall order that interest be calculated from 26 182 days after the date the complaint was filed to the date of 27 satisfaction of the judgment. H02152'01 * 5 1 (11) Except as otherwise provided in subsection (1), if a 2 bona fide, reasonable written offer of settlement in a civil 3 action based on tort is made by a plaintiff for whom the judgment 4 is subsequently rendered and that offer is rejected and the offer 5 is filed with the court, the court shall order that interest be 6 calculated from the date of the rejection of the offer to the 7 date of satisfaction of the judgment at a rate of interest equal 8 to 2% plus the rate of interest computed under subsection (6). 9 (12) A bona fide, reasonable written offer of settlement 10 madepursuantACCORDING to this section that is not accepted 11 within 21 days after the offer is made is rejected. A rejection 12 under this subsection or otherwise does not preclude a later 13 offer by either party. 14 (13) As used in this section: 15 (a) "Bona fide, reasonable written offer of settlement" 16 means EITHER OF THE FOLLOWING: 17 (i) With respect to an offer of settlement made by a 18 defendant against whom judgment is subsequently rendered, a writ- 19 ten offer of settlement that is not less than 90% of the amount 20 actually received by the plaintiff in the action through 21 judgment. 22 (ii) With respect to an offer of settlement made by a plain- 23 tiff, a written offer of settlement that is not more than 110% of 24 the amount actually received by the plaintiff in the action 25 through judgment. 26 (b) "Defendant" means a defendant, a counter-defendant, or a 27 cross-defendant. H02152'01 * 6 1 (c) "Party" means a plaintiff or a defendant. 2 (d) "Plaintiff" means a plaintiff, a counter-plaintiff, or a 3 cross-plaintiff. H02152'01 * Final page. LTB