S T A T E   O F   N E W   Y O R K
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                                  4929

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            February 9, 2011
                               ___________

Introduced by M. of A. BRENNAN, BENEDETTO, JEFFRIES, MILLMAN, ROSENTHAL,
  GOTTFRIED,  CAHILL, LANCMAN, WRIGHT, TITONE, ORTIZ, ZEBROWSKI, MAISEL,
  JAFFEE, HOOPER, STEVENSON -- Multi-Sponsored by -- M. of  A.  BOYLAND,
  BROOK-KRASNY, CLARK, COOK, DINOWITZ, GABRYSZAK, GLICK, LENTOL, MAGNAR-
  ELLI, PHEFFER, J. RIVERA, P. RIVERA, ROBINSON, WEISENBERG -- read once
  and referred to the Committee on Judiciary

AN  ACT to amend the civil practice law and rules, in relation to offers
  to compromise and  to  computation  of  interest  in  personal  injury
  actions

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Rule 3221 of the civil practice law and rules is amended to
read as follows:
  Rule 3221.  Offer to compromise. Except in a  matrimonial  action,  at
any  time not later than ten days before trial, any party against whom a
claim is asserted, and against whom a separate judgment  may  be  taken,
may  serve  upon  the  claimant  a written offer to allow judgment to be
taken against [him] THAT PARTY for a sum or property or  to  the  effect
therein  specified,  with costs then accrued.  If within ten days there-
after the claimant serves a written notice [that he  accepts]  ACCEPTING
the  offer, either party may file the summons, complaint and offer, with
proof of acceptance,  and  thereupon  the  clerk  shall  enter  judgment
accordingly.    If  the  offer is not accepted and the claimant fails to
obtain a more favorable judgment, [he] THE CLAIMANT  shall  not  recover
costs  OR  INTEREST from the time of the offer, but shall pay costs from
that time.  An offer of judgment shall not be made known to the jury.
  S 2. Subdivisions (a) and (b) of section 5001 of  the  civil  practice
law and rules are amended to read as follows:
  (a)    Actions in which recoverable. 1. Interest TO VERDICT, REPORT OR
DECISION shall be recovered upon a sum awarded [because of a  breach  of
performance  of  a]  IN AN ACTION BASED ON PERSONAL INJURY, contract, or

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08068-01-1
              

A. 4929                             2

[because of] an act or omission depriving or otherwise interfering  with
title to, or possession or enjoyment of, property[, except that].
  2.  INTEREST  MAY BE AWARDED IN THE COURT'S DISCRETION in an action of
an equitable nature[, interest and the] AT A rate [and date  from  which
it shall be] computed [shall be] in the court's discretion.
  (b)    Date  from  which  computed;  TYPE OF DAMAGE ON WHICH COMPUTED.
Interest RECOVERABLE IN THE ACTIONS SPECIFIED IN SUBDIVISION (A) OF THIS
SECTION SHALL BE COMPUTED AS FOLLOWS:
  1. IN AN ACTION FOR PERSONAL  INJURY,  INCLUDING  PRODUCTS  LIABILITY,
INTEREST  SHALL  BE  COMPUTED  FROM  THE DATE OF THE COMMENCEMENT OF THE
ACTION OR FROM A DATE ONE YEAR AFTER THE DATE THE CAUSE OF ACTION AROSE,
WHICHEVER IS LATER BUT SHALL BE BASED EXCLUSIVELY ON SPECIAL AND GENERAL
DAMAGES INCURRED TO THE DATE OF SUCH VERDICT, REPORT OR DECISION;
  2. IN AN ACTION BASED UPON CONTRACT, OR AN ACT OR  OMISSION  DEPRIVING
OR  OTHERWISE  INTERFERING WITH TITLE TO, OR POSSESSION OR ENJOYMENT OF,
PROPERTY, INTEREST shall be computed  from  the  earliest  ascertainable
date  the  cause  of  action  existed, except that interest upon damages
incurred thereafter shall be computed from the  date  incurred.    Where
such  damages were incurred at various times, interest shall be computed
upon each item from the date it was incurred or upon all of the  damages
from a single reasonable intermediate date; AND
  3.  IN  AN  ACTION  OF AN EQUITABLE NATURE, INTEREST SHALL BE COMPUTED
FROM A DATE FIXED IN THE COURT'S DISCRETION.
  S 3. This act shall take effect on the first of January next  succeed-
ing  the  date  on  which  it  shall have become a law, except that: (1)
section one of this act shall apply only to actions in which  the  offer
to  compromise was made on or after such effective date, and (2) section
two of this act shall apply only to actions in which a note of issue  or
notice  of  trial,  whichever is appropriate, has been filed on or after
such effective date.