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Senate substitutes prejudgment interest bill to limit when interest accrues and set rates
Summary
Senators substituted SB 69 to revise prejudgment interest rules for lost wages and medical expenses, moving accrual to the date of first loss (rather than date of accident), setting a floor and ceiling on rates, and making other procedural clarifications; the substitute was circled and later advanced by recorded votes.
Sponsor Senator Urquhart presented a substitute to SB 69 that adjusts prejudgment interest rules. The substitution shifts the accrual start to the date of first loss (for example, when medical bills are actually incurred rather than the accident date), establishes a floor of 5% and a ceiling of 10% with a default calculation (prime plus 1) and includes provisions to encourage reasonable settlement offers.
The sponsor said the second substitute responds to nine points raised by attorneys who handle most accident cases and that the changes are intended to balance plaintiffs’ and defendants’ interests. Senators asked detailed procedural questions: whether alterative rules (such as Rule 68 offers or Rule 408 admissibility) are affected (the sponsor said they are not), whether the change applies prospectively (the substitute applies to accidents after July 1, 2014), and how the offer/response timing works (90‑day response window for the proposed written offer mechanism).
The Senate substituted the bill on the floor and later held recorded votes to advance the substitute; detailed final passage timing and any prospective application were clarified by the sponsor on the floor.
