Judgments: interest.

The California Constitution provides that the rate of interest on a judgment rendered in any court of this state shall be set by the Legislature at not more than 10% per annum. Existing law provides that interest accrues at the rate of 10% per annum on the principal amount of a money judgment remaining unsatisfied. Under existing law, if the plaintiff makes an offer that the defendant does not accept prior to trial or within 30 days, whichever occurs first, and the plaintiff obtains a more favorable judgment, the judgment shall bear interest at the legal rate of 10% per annum calculated from the date of the plaintiff's first offer that is exceeded by the judgment. This bill would instead provide that interest accrues at the federal short-term rate plus 2%, except as otherwise provided in a written contract, not to exceed 10% per annum on those judgments, as specified. The bill would require the Controller to annually establish the interest rate, as specified, and notify the auditor in each county of that rate.