Interest rates on judgments in small claims actions

What it would have done

Summary by the Legislative Reference Bureau, the Legislature's nonpartisan drafting office. It's their wording, not ours.

Under current law, interest accrues on a judgment involving the recovery of money at an annual rate of 1 percent plus the prime rate in effect on January 1 of the year in which the judgment is entered if the judgment is entered on or before June 30 of that year or in effect on July 1 of the year the judgment is entered if entered after June 30 of that year, as reported by the Federal Reserve Board, until the amount is paid. Current law also provides that, if an offer of settlement is made and rejected, the party making the offer of settlement prevails, and the judgment is greater than or equal to the offer of settlement, interest accrues on the amount recovered at the rate of 1 percent plus the prime rate in effect on January 1 of the year in which the judgment is entered if the judgment is entered on or before June 30 of that year or in effect on July 1 of the year the judgment is entered if entered after June 30 of that year from the date on which the offer of settlement is made until the amount is paid.

Current law establishes certain procedures to be followed in small claims actions brought in circuit court. Small claims actions include eviction actions, actions to recover earnest money given towards the purchase of real property, and certain other civil actions on which the amount claimed is $10,000 or less.

Who's behind it

17 lawmakers are its authors⁠. 16 are Republicans and 1 is a Democrat.

3 more lawmakers signed on in support⁠.

Versions and amendments

Every text the Legislature printed for this bill, including proposed changes. Each opens on the Legislature's site.

• Amendment Histories
• LC Amendment Memo