Under Gov. Code 970.6, a local governmental entity may apply to the court for permission to pay a judgment against it in up to 10 annual installments, if paying the judgment in a lump sum would constitute an “unreasonable hardship.”  Here, the trial court did not abuse its discretion in granting the defendant district’s motion to pay the $17 million judgment against it in 10 installments as the district showed it could not impose taxes on its own to pay the judgment and the only realistic means it had to raise the money at once was to sell its office building which would compromise its operations and possibly lead to its bankruptcy.  Under Gov. Code 984(e), interest on a judgment against a governmental entity being paid in installments is set at the rate of US Treasury bills.  But that interest rate is applied only after the motion for periodic payments is granted.  Until then, the normal 7% post-judgment interest rate applies.

California Court of Appeal, First District, Division 1 (Dondero, J.); November 29, 2016; 2016 WL 6958654