S T A T E   O F   N E W   Y O R K
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                                  5231

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                            February 21, 2013
                               ___________

Introduced  by  M.  of  A. BRENNAN, BENEDETTO, MILLMAN, ROSENTHAL, GOTT-
  FRIED, CAHILL, WRIGHT, TITONE, ORTIZ, ZEBROWSKI, MAISEL, JAFFEE, HOOP-
  ER, STEVENSON -- Multi-Sponsored by -- M. of A. BOYLAND, BROOK-KRASNY,
  CLARK, COOK, DINOWITZ, GABRYSZAK, GLICK, LENTOL,  MAGNARELLI,  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.
                                                           LBD09130-01-3
              

A. 5231                             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.