§ 37-13.1-1 - Suits allowed – Jurisdiction – Statute of limitations – Procedure.
SECTION 37-13.1-1
§ 37-13.1-1 Suits allowed –Jurisdiction – Statute of limitations – Procedure. – (a) Any person, firm, or corporation which is awarded a contract subsequent toJuly 1, 1977, with the state of Rhode Island, acting through any of itsdepartments, commissions, or other agencies, for the design, construction,repair, or alteration of any state highway, bridge, or public works other thanthose contracts which are covered by the public works arbitration act may, inthe event of any disputed claims under the contract, bring an action againstthe state of Rhode Island in the superior court for Providence county for thepurpose of having the claims determined, provided notice of the general natureof the claims shall have been given in writing to the department administeringthe contract in accordance with the contract specifications set forth for thespecific contract. No action shall be brought under this section later than oneyear from the date of the acceptance of the work by the agency head as soevidenced; provided, however, that no action shall be brought under thissection on any contract awarded prior to July 1, 1977. Acceptance of an amountoffered as final payment shall preclude any person, firm, or corporation frombringing a claim under this section. The action shall be tried to the courtwithout a jury. All legal defenses except governmental immunity shall bereserved to the state. Any action brought under this section shall beprivileged in respect to assignment for trial upon motion of either party.
(b) Any party bringing an action under this section shall beentitled to an award of prejudgment interest beginning with the filing date ofsuch court action. Said interest shall be computed daily to the date of paymentand shall be compounded annually. Interest shall be calculated as follows:
(1) Where the period for which interest is owed does notexceed one year, interest shall be calculated for such period at an annual rateequal to the weekly average one year constant maturity treasury yield, aspublished by the board of governors of the federal reserve system, for thecalendar week preceding the filing date of the court action under this section.
(2) Where the period for which interest is owed is more thanone year, interest for the first year shall be calculated in accordance withsubdivision (1) of this section and interest for each additional year shall becalculated on the combined amount of the principal and accrued interest at anannual rate equal to the weekly average one year constant maturity treasuryyield, as published by the board of governors of the federal reserve system,for the calendar week preceding the beginning of each additional year.
In the event the one year constant maturity treasury yield isconverted to a different standard reference base or otherwise revised, thedetermination of interest shall be made with the use of such converted orrevised standard reference base. In the event the board of governors of thefederal reserve system ceases to publish a converted or revised rate, interestshall be calculated at a rate published by the United States TreasuryDepartment, or other comparable entity, that establishes a rate reflecting orbest approximating the market conditions for one year investments at the timeof the taking and each additional year that interest is owed pursuant tosubdivision (2) above.
Any action brought under this section shall, upon motion ofeither party, be given priority for expedited hearing.