Weekly Legislative Update
January 29, 2010

Big bills, big price tags

This week the Senate held a hearing on the trial lawyers’ pet bill, the measure to expand the state’s wrongful death statute (SB 6508).  Lawmakers heard compelling testimony from the Attorney General’s office, the Association of Washington Cities and the Washington State Association of Counties regarding the overwhelming costs associated with such an expansion.  The Attorney General estimates that SB 6508 will cost state taxpayers at least $18.4 million per biennium.  But that’s not all.  Local government taxpayers can expect to be on the hook for an additional $2 million per wrongful death claim.  Isn’t the state already in a $2.6 billion hole? 

Another bill that received lawmakers’ attention this week was SB 6701, a measure that provides additional construction liability for any construction official involved in the construction of a new home or a remodel of an existing home.  Considering that the housing market is in the tank, it’s hard to understand how the Legislature could consider a proposal which practically guarantees increasing the cost of housing.  This short-sided proposal, along with a similar House version (HB 1373), needs to be put aside and instead all interested parties should focus on a solution that protects homeowners while at the same time not setting up a scheme to increase lawsuits and housing prices. 

For a complete list of active liability bills so far this session, check out the LRC bill tracker. 

Civil lawsuit defendants beware
Tort judgment interest rate increase considered

Just a few years after the legislature fairly and wisely agreed to lower the tort judgment interest rate (the interest rate a defendant pays on a judgment while awaiting appeal) from 18% to two points above the current 26-week T-bill rate, they now are considering undoing one of the few pieces of reform they have passed in the last decade.  SB 6764 increases the tort judgment interest rate back to the old level for all defendants, except public entities.  In other words, government gets one deal and the rest of the players get another.  Hardly fair.  SB 6764 will be heard in the Senate Judiciary Committee on Feb. 2.