Provides for the amount of interest awarded on claims for personal injury or wrongful death in suits against the state or political subdivisions. (8/1/26)

Senate Bill 139 amends Louisiana Revised Statutes section 13:5112(C) to modify the interest rate calculation for personal injury and wrongful death claims brought against the state or its political subdivisions. Currently, legal interest on such claims accrues at a fixed rate of six percent per annum from the date service is requested following judicial demand until the judgment is signed. The bill changes this to provide that legal interest shall accrue at whichever is lower: six percent per annum or the rate of judicial interest established under R.S. 13:4202. The accrual period remains unchanged, continuing from the date service is requested following judicial demand until the judgment is signed pursuant to Code of Civil Procedure Article 1911. The provision regarding interest accruing after judgment, which continues at the rate set by R.S. 9:3500, remains in effect under both present and proposed law.

Plaintiffs pursuing personal injury or wrongful death claims against the state of Louisiana or its political subdivisions, including departments, boards, commissions, and agencies, will be affected by this change. In situations where the judicial interest rate established under R.S. 13:4202 falls below six percent per annum, successful plaintiffs will receive a lower rate of interest accrual on their claims from the date of judicial demand through judgment. Conversely, when the judicial interest rate exceeds six percent, the cap at six percent will continue to apply. This modification potentially reduces the amount of pre-judgment interest awarded to successful plaintiffs in these suits while preserving the current framework for post-judgment interest calculation.

This amendment operates within Louisiana's statutory framework governing suits against the state and its subdivisions. R.S. 13:5112 establishes the broader authority for courts to award costs and interest in such suits, while R.S. 13:4202 establishes the judicial interest rate that would become the operative benchmark under this bill. The change coordinates with Code of Civil Procedure Article 1911, which governs the timing of judgment signing and thus the demarcation between pre-judgment and post-judgment interest periods. The bill maintains the existing structure by which interest rates change upon judgment signing, with R.S. 9:3500 continuing to govern post-judgment interest rates. The effective date of August 1, 2026, provides advance notice to parties litigating against state entities regarding the interest calculation methodology applicable to their claims.