House Bill No. 534

Introduced By _______________________________________________________________________________

A Bill for an Act entitled: "An Act making the state liable for interest and attorney fees in a judgment involving a contract; making a governmental entity liable for interest on a judgment; amending section

18-1-404, MCA; repealing section 2-9-317, MCA; and providing an immediate effective date."

Be it enacted by the Legislature of the State of Montana:

Section 1.  Section 18-1-404, MCA, is amended to read:

"18-1-404.   Liability of state -- limitations -- costs. (1) The state of Montana shall be is liable in respect to any contract entered into in the same manner and to the same extent as a private individual under like circumstances, except the state of Montana shall is not be liable for interest prior to or after judgment or for punitive damages. The state of Montana is liable for interest from the date on which the payment on the contract became due.

(2)  Costs may be allowed as provided in 25-10-711. In all other cases, costs shall must be allowed in all courts to the successful claimant to the same extent as if the state of Montana were a private litigant,. except that such The costs shall must not include attorney's attorney fees."

NEW SECTION. Section 2.  Repealer. Section 2-9-317, MCA, is repealed.

NEW SECTION. Section 3.  Effective date. [This act] is effective on passage and approval.