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On November 16, 2011, Governor Scott Walker signed 2011 Wisconsin Act 69 which lowers the interest rate on judgments in civil suits. Under current law, interest accrues on judgments at a rate of 12% per year from the date of entry of judgment until the date the judgment is paid. Further, under current law, if a party makes a settlement offer that is rejected, and the party ultimately recovers a judgment that is equal to or greater than the settlement offer, interest accrues at 12% from the date of the settlement offer.
The new law lowers the interest rate in these situations from 12% to 1% plus the prime rate, as reported by the federal reserve board. The effective prime rate is the rate reported on January 1 of the year in which the judgment is entered if entered, before June 30, or it is the rate in effect on July 1, if the judgment is entered after June 30.
The new law applies to civil judgments entered on or after December 2, 2011.
© MICHAEL BEST & FRIEDRICH LLPAbout the Author
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