AWC is opposing a bill that increases the cost of tort claims damages awards against cities. The bill is scheduled for action this week in the Senate, so please contact your Senators to ask them to oppose this costly legislation.

SB 5059, sponsored by Sen. Patty Kuderer (D–Bellevue), requires interest on judgments against “public agencies” and other defendants for torts to accrue from the time the cause of action occurred (i.e. the time the plaintiff was injured or experienced a loss). This new standard would apply to arbitration awards and judgments entered after a trial. For all other judgments, interest would only begin to accrue after entry of judgment. AWC opposed similar bills in 2021 and 2022, and they failed to pass the Legislature.

Under current law, interest on tort damages begins to accrue upon entry of judgment by the court. This is an important distinction, since tort litigation can take years to complete and for a judgment to be entered. On top of the litigation time, many types of torts also carry statutes of limitation of two years or more. For example, many personal injury claims carry a statute of limitation of three years. This means a claim could have years’ worth of interest accrued before a claim was even filed and a city even knew there was an injury or loss, let alone knew it had a financial obligation after a trial.

AWC is opposed to SB 5059 for several reasons:

• Cities are already having a difficult time affording liability insurance, and this bill raises the stakes even higher so that insurance may become cost prohibitive for many cities. One mayor recently told AWC that their city expected to see a 61% increase in their liability insurance premiums in 2023 alone. Additional liability may simply render some cities uninsurable.
• This bill would make cities liable before they even knew there was a claim, or knew the city had a financial obligation to cover it after a trial. It would do nothing to bring actual relief to an injured plaintiff.
• Litigation can take years to complete, and much of that is due to overburdened courts. It is unfair to penalize defendants for timelines outside their control.
• Finally, the bill incentivizes plaintiffs to delay filing a claim and encourages plaintiffs’ attorneys to file additional claims.

Please reach out to your Senator and express your city’s opposition to SB 5059.

Dates to remember

SB 5059 is scheduled for a public hearing in the Senate Law & Justice Committee on Tuesday, January 24 at 10:30 am. It is also scheduled for a committee vote on Thursday, January 26 at 8 am.