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Utah House Rejects Change to 10% Prejudgment Interest Rate After Heated Floor Debate
Summary
Lawmakers debated whether to replace a flat 10% prejudgment interest rate with a market‑based 5–10% range before the House voted 34–40 to reject the changes; sponsors said the update would modernize an 1981 standard, opponents warned it could weaken incentives to settle.
The Utah House of Representatives on March 3 debated amendments to the state's prejudgment interest statute and ultimately voted down proposed changes intended to lower the flat 10% rate.
Representative Jason B. Powell, the bill sponsor, told colleagues the 10% prejudgment rate "was set in 1981" and argued that today it produces an outsized windfall compared with modern market rates. He said the committee's compromise would clarify which contracts the statute covers and set a variable prejudgment rate "no lower than 5% and no higher than 10%" tied to market conditions.
Opponents, including Representative Andrew Christiansen, urged caution. "If you really wanna go chase an unconscionable interest rate, look at the credit card agreements," Christiansen said, arguing the 10% rate helps motivate settlements and protects parties with weaker bargaining positions. Other members questioned whether moving to a floating, market‑based rate would favor deep‑pocket defendants and reduce plaintiffs' leverage.
Representative Brian King brought an alternative first substitute version of the bill to the floor so members could compare approaches. Floor debate focused on whether the legislature should clarify statutory language only or also change the policy behind the rate.
After division and floor voting, the House recorded 34 yes votes and 40 no votes; House Bill 91 failed and was referred to staff for the file. The body did not adopt either the substitute that would preserve a 10% default or the version that would set a variable 5–10% range.
