2005 Idaho Code - 6-1602 — PERIODIC PAYMENT OF JUDGMENTS -- EXCEPTIONS -- DISCRETIONS -- PROCEDURE

                                   TITLE  6
                         ACTIONS IN PARTICULAR CASES
                                  CHAPTER 16
               [PERIODIC PAYMENT OF JUDGMENTS -- LIMITATION ON
                    CERTAIN TORT DAMAGES AND LIABILITIES]
    6-1602.  PERIODIC PAYMENT OF JUDGMENTS -- EXCEPTIONS -- DISCRETIONS --
PROCEDURE. (1) In any civil action seeking damages for personal injury or
property damages in which a verdict, award or finding for future damages
exceeds the sum of one hundred thousand dollars ($100,000), the court may, in
the exercise of its sound discretion, and at the request of either party,
enter a judgment which provides for the periodic payment of that portion of
the verdict, award or finding which represents future damages.
    (2)  If, prior to the entry of judgment, either party requests that the
judgment provide for the periodic payments of future damages, the court shall
request each party to submit a proposal for such payment which, at a minimum,
shall state:
    (a)  The reasons which demonstrate that the imposition of periodic
    payments is appropriate or inappropriate, according to the criteria
    provided in subsections (3), (4) and (5) of this section;
    (b)  The manner and method of proposed future periodic payments including:
         (i)  The name or names of each recipient of such payments;
         (ii)  The number, time, interval and dollar amount of all such
         payments;
         (iii)  The total amount to be paid over the course of such payments;
         (iv)  The present cash value of such payments as of the date when
         payment is to commence;
         (v)  The terms and conditions of any annuity policy, contract or
         investment which a party intends to rely upon as the means of
         facilitating such payments; and
         (vi)  The method by which such payments are secured.
    (c)  Any other factor the court deems appropriate under the prevailing
    circumstances.
    (3)  In determining whether periodic payments are appropriate in any given
case, the court shall  consider, receive evidence and enter findings of fact
and conclusions of law on the following:
    (a)  The age, health, education, occupation experience, medical needs,
    capacity or incapacity, dependency, and any other special circumstances
    which, considering the best interests of the claimant, weigh in favor of
    periodic or lump sum payments;
    (b)  The financial capacity and resources of the judgment debtor, and any
    other factors which may affect such debtor's ability to pay the judgment
    in lump sum, or  may otherwise substantially impair the future solvency of
    such debtor if periodic payments are not ordered;
    (c)  The degree to which the future damages, losses, expenses and needs
    are subject to ascertainment with reasonable certainty;
    (d)  The extent to which an order of future periodic payments may
    significantly risk that the judgment debtor will be required to pay more
    than the verdict award or finding, or that the claimant will not be fully
    and fairly compensated for the future damages;
    (e)  The existence and amount of any policy of insurance providing
    coverage, in whole or part, to the judgment debtor for the future damages
    of the claimant;
    (f)  The claimant's entitlement to future income, benefits, proceeds or
    payments from other sources which, with reasonable certainty, may
    supplement the claimant's future economic needs, damages or expenses;
    (g)  The extent to which the manner of payment may serve to discourage or
    deter the tortious, wrongful or otherwise unlawful conduct of the judgment
    debtor or others similarly situated;
    (h)  The availability of adequate security to insure that the claimant
    will receive the full value of the verdict, award or finding;
    (i)  The extent to which the claimant's attorney will be fully and
    adequately compensated pursuant to terms of the agreement for
    representation with the claimant; and
    (j)  The effect upon any taxes which the claimant will have to pay on the
    periodic payments.
    (4)  Unless otherwise agreed to by the claimant, periodic payments shall
not be ordered in any case involving an intentional tort, or wrongful conduct
perpetrated with or accompanied by fraud, dishonesty, malice, willfulness,
gross negligence or which represents an extreme deviation from reasonable
standards of conduct.
    (5)  Any unpaid balance of any judgment shall accrue and bear interest at
the legal rate of interest specified in section 28-22-104(2), Idaho Code,
except to the extent such judgment is for future damages. Judgments for future
damages shall not bear interest unless such future damages have been reduced
to present value in which case the court shall assign an interest rate which
is consistent with the methodology used in reducing the amount of such verdict
award or finding to present value.
    (6)  Adequate security shall be required on every judgment ordered payable
by periodic means, including the provision of any one or combination of the
following:
    (a)  An annuity contract issued by an insurance company with a financial
    rating acceptable to the court;
    (b)  Personal guarantees;
    (c)  Reinsurance contracts;
    (d)  Security instruments on real and personal property; or
    (e)  Such other collateral or security the court may determine appropriate
    and necessary to ensure full and timely payment of the judgment.
    (7)  If the court enters a judgment for periodic payments and any security
required by the judgment is not given within sixty (60) days, the court shall
enter judgment for payment of the future damage award in a lump sum, together
with an award of reasonable costs and attorney fees incurred by the claimant
relating to the request for periodic payments.
    (8)  If the court enters an order for periodic payments within sixty (60)
days after entry of an order for periodic payments, the judgment debtor may
elect not to make the periodic payments and satisfy the judgment for periodic
payments by paying the full amount of damages awarded before the order for
periodic payments.
    (9)  If at any time following entry of judgment for periodic payments, a
judgment debtor fails to make any payment in full or in a timely fashion, or
otherwise according to the terms of the judgment, the claimant may petition
the court for an order requiring payment by the judgment debtor of the total
remaining amount of the unpaid future damage award and, if necessary, an order
allowing execution upon any security given for payment together with such
additional penalties, including an award of costs and attorney fees, as the
court deems appropriate. In ruling upon such petition the court may consider
whether the judgment debtor's failure to make full or timely payment was the
result of his excusable inadvertence or the ministerial act of third parties
beyond the control of the judgment debtor, together with all equitable
considerations which favor granting or denying the petition.
    (10)  All judgments payable by periodic payments, as provided in this
section, shall constitute a property right of the judgment creditor entitled
to receive the payments, shall survive the death, disability or incapacity of
the judgment creditor, and shall be inheritable, devisable, assignable and
otherwise subject to disposition by the judgment creditor as any other form of
intangible personal property; provided that nothing contained herein is
intended to amend, modify or in any way alter any federal, state or local laws
pertaining to taxes which may or may not be assessed against all or any
portion of the judgment.