Despite the Senate addressing the concerns of local governments by removing public agencies from being subject to prejudgment interest, the House recently removed key language adopted in the Senate, once again making cities subject to prejudgment interest.
As a reminder, SB 5155 will allow interest on judgments for tortious conduct to begin accruing from the date on which
a person suffers an injury or loss. This means interest would start to accrue before a claim was filed and before a city was made aware of the injury or loss. This bill has potentially devastating
financial impacts to cities.
The Senate amendment was a huge win for cities and other public agencies; however, as the current version of the bill penalizes cities we urge you to contact your representatives and remind them that:
- Public funds used in settlements and legal penalties are funds that are taken away from other valuable services that Washington residents rely on in their day-to-day lives.
- This bill will penalize cities for timelines outside of their control. Courts are already overburdened; sometimes it can take years for a case to come to trial.
- This bill creates additional financial incentives for parties to delay filing a cause of action and for trial attorneys to file additional claims.
Please contact your representative today and urge them to remove public agencies from SB 5155.
If you have questions about the bill or how to contact your legislators,
please email Sharon Swanson or Jacob Ewing.