EFTA01108538.pdf

Prejudgment Interest & Interest on Judgments Generally Knowledge & Information Services The Information Resource Center was asked to provide the amounts of prejudgment interest state- by-state. The following table is compiled from the Martindale-Hubbell Law Digest, 2000. Data for each state is self-reported and does not always mention prejudgment interest. Where states specifically report prejudgment interest, this information is noted. Where states report interest on judgments generally, this is noted in the table. Some apply the same rates to both. This table is not provided for the purposes of legal advice, but for purposes of comparison. Please refer to cited legal authority for more information. AL: : AK : : AZ : : AR : : CA : : CO : : CT : : DC : : DE : : FL : : GA : : HI : : ID : : IL : : IN : : IA : : KS : : KY : : LA : : ME : : MD : : MA : : MI : : MN : : MS : : MO : : MT : : NB : : NV : : NH : : NJ : : NM : : NY : : NC : : ND : : OH : : OK : : OR : : PA : : PR : : RI : : SC : : SD : : TN : : TX : : UT : : VT : : VA : : VI : : WA : : WV : : WI : : WY Alabama Prejudgment interest accrues at legal rate 6% unless statute or contract otherwise provides (440 So.2d 321). Alaska Interest on judgments, including prejudgment interest, is 3 percentage points above 12th Fed. Reserve discount rate in effect on Jan. 2 of yr. in which judgment entered unless based on written contract providing for specified rate, in which case interest at contract rate if such rate is set forth in judgment (09.30.070). Prejudgment interest accrues from day process served or day defendant receives written notification injury occurred & that claim may be brought against defendant, whichever earlier. Prejudgment interest may not be awarded for future economic, non-economic, or punitive damages (09.30.070). Arizona Judgments generally-10% unless different rate contracted for in writing in which case any rate may be agreed upon. Interest on judgment in condemnation proceeding payable at rate prescribed by 28-7101. Judgment on agreement bearing higher rate not in excess of max. permitted bears rate provided (44-1201). Arkansas Judgments generally—judgments on contracts bear interest at greater of rate provided in contract or 10%, but not more than allowed by Art. 19, §13 of Ark. Const. (16-65-114). Other judgments bear interest at 10%, but not greater than allowed by Art. 19, §13 of Ark. Const. (16-65-114). EFTA01108538  Top California Judgments generally—rate if set by legislature not more than 10% (Const. Art. XV, §1). Colorado Judgments generally—interest runs from date of entering until satisfaction at normal rate specified in contract or instrument &, if normal rate variable, then at rate in effect on date of judgment; if no rate specified then 8% compounded annually (5-12-102[4]). Interest on judgments appealed by judgment debtor in civil case w/o written agreement, greater of 8% & rate certified by sec'y of state, compounded annually, from date of entry until pd. (5-12-106[1]). Certified rate based on 2% above discount rate for commercial banks at fed. reserve in Kansas City using govt. bond or other eligible paper as security, rounded to nearest full percent (5-12-106[2]). Connecticut Judgments generally—in absence of agreement to contrary, 8% (37-1). Rate collectible on past due obligations, running accounts, & judgments. Interest recoverable as damages in civil action at 10%. Reasonable & just interest on compensation awarded for eminent domain (37-3a). District of Columbia Judgments generally—in absence of agreement, 6% (§28-3302). Interest at rate 4% allowed on judgments vs. DC or its officers or employees acting w/in scope of employment. Where judgment not vs. DC, or not fixed by contract, 70% of rate set by Sec'y of Treasury pursuant to §6621 of IRS Code of 1986 (100 Stat. 2085; 26 USC §6621) for underpayments & overpayments. Delaware Judgments generally—legal rate (25 Del. Ch. 388, 22 A.2d 865). Top Florida Judgments generally—those entered after Oct. 1, 1981, bear interest at rate set by Comptroller of State (55.03[1]), unless rate established by written contract or obligation (55.03[1]). Judgments not indicating rate or referencing statutory rate (55.03[1]) will not be docketed or collected by county sheriffs (55.03[4]). Judgments & decrees on evidences of indebtedness of county or special road & bridge districts or incorporated city or town or taxing district bear interest at 5% or at lower rate if provided for in such evidence of indebtedness (55.04). Georgia Judgments generally-12% on principal amt. recovered unless rendered on written contract or obligation providing specified rate, in which case judgment bears interest at rate specified. Post- judgment interest accrues automatically, whether judgment specifically reflects entitlement to such interest (7-4-12). In actions ex delicto, claimant entitled to 12% interest on claims of unliquidated damages from 30 days after statutory notice, provided judgment for amount not less than sum claimed (51-12-14). Hawaii Judgments generally-10% allowed on any judgment in civil suit (478-3). EFTA01108539 Idaho Judgments generally-5°k plus base rate in effect at time of entry, determined by annual avg. yield on US treas. securities determined by Idaho St. Treasurer (28-22-104). Illinois Judgments generally-9% from date of recovery to date of payment, or 6% when debtor is local govt., school, or community college. Debtor, by tender of payment of judgment, costs & accrued interest to date of tender, can stop further accrual notwithstanding prosecution of appeal or action to reverse, vacate, or modify (735-5/2-1303). Indiana Ct. may award prejudgment interest in tort action of 6-10% per yr. for period not exceeding 48 mos. & beginning to accrue no earlier than 15 mos. after action accrued & 6 mos. after claim filed if party filing makes written offer to settle w/in 1 yr. after filing for amount exceeding 1 1/3 of judgment and party vs. whom claim is filed fails to make written offer to settle w/in 9 mos. after filing for at least 2/3 of judgment (IC34-51-4). Judgments generally—contract or agreed upon rate up to 8%; if no agreement at 8% (IC24-4, 6-1- 101). Govt. entities liable for structured settlement, even if appealed, provided original judgment upheld (IC34-13-3-18). Top Iowa Judgments generally—variable rate tied to latest avg. auction price of 52 wk. US T-bills plus 2% unless different rate (not exceeding max. under 535.2) expressed in contract on which judgment based. Interest shall accrue on judgment from date action commenced (668.13). Kansas Judgments generally—including vs. state or political subdivision, 8% until Jul. 1, 1980. Judgments rendered or unpaid. thereafter, 12% until Jul. 1, 1982. Those rendered or unpaid thereafter and before Jul. 1, 1986, 15%. After Jul. 1, 1986, post-judgment rate will be 4% above fed. discount rate as of Jul. 1 preceding date of judgment (16-204). Where judgment founded on contract specifying different rate, contract rate controls (16-205). Kentucky Judgments generally-12% compounded annually from its date, but judgment for accruing interest on written obligation bears interest according to instrument, whether higher or lower than 12%. Court may direct, after hearing w/due notice, that judgment for unliquidated damages bear interest at lesser rate (KRS 360.040). Louisiana Judgments generally—interest from date of judicial demand on all judgments sounding in damages ex delicto (T. 13, §4203), except state, its agencies, and political subdivisions, 6% (T. 13, §5112, as am'd Act 509 of 1985). Interest may run from date sum of money or damages for delay of performance due (C.C. 2000, as am'd Act 137 of 1985). Top Maine EFTA01108540 Prejudgment interest 8% for cases in which damages claimed or awarded do not exceed $30,000 Dist. Ct. jurisdictional limit, except cases involving contract or note containing provision relating to interest (T. 14 §1602). For other actions, interest equals coupon issue yield equivalent of avg. accepted auction price for last auction of 52-wk. Treas. bills settled immediately prior to date from which interest calculated plus 1% (T. 14, §1-02). Judgments generally-15% for cases in which damages do not exceed $30,000 Dist. Ct. jurisdictional limit. For other actions, interest equals coupon issue yield equivalent of avg. accepted auction price for last auction of 52-wk. T-bills settled immediately prior to date from which interest calculated plus 7% (T. 14, §1602-A). Maryland Judgments generally-10% from rendition. Money judgments for loan debt not secured by realty may carry contract rate until originally-schedule maturity date (courts art. §§311-106, 11-107, 11- 301). Massachusetts For pecuniary damages for personal injuries, consequential damages, or property damage, clerk req'd to add damages interest 12% per yr. from commencement of action (c. 231, §6B). See 406 Mass. 62, 545 N.E.2d 1168, regarding prejudgment interest for conscious suffering & wrongful death of stabbing victim. Judgments generally—in contract actions, clerk req'd to add to judgment for pecuniary damages interest at contract rate, if est'd; otherwise 12% from date of breach or demand, if est'd, & otherwise from commencement of action (c. 231, §6C). Interest at 18% may be awarded upon finding defenses, setoffs, or counterclaims of other party wholly insubstantial, frivolous, & not in good faith (c. 231, §6F). Judgment bears interest from day of entry until payment (c. 235, §8). Post-judgment interest at rate provided for prejudgment interest (c. 235, §8). Michigan Judgments generally—complaints filed before 6-1-80 bear interest from date of filing complaint at 6% until 6-1-80, 12% thereafter, or at rate provided in written instrument, not exceeding 7%, until 6- 1-80; 13% thereafter. For complaints filed on or after 6-1-80, 12%, or if written instrument has higher rate, at rate provided not to exceed 13% after date entered. For complaints filed on or after 1- 1-87 interest accrues from date of filing at rate certified by state treasurer semiannually w/interest calculated on entire amt. including atty. fees & costs, but amt. retained by plaintiff. For complaints filed on or after 10-1-86 interest not allowed on future damages (personal injury damages accruing after damage findings made). In tort cases, written settlement offer may affect foregoing. In medmal cases, failure of party to allow access to medical records can affect time for calculation (MCLA §600.6013, 6301; MSA §27A.6013.6301). Minnesota Judgments generally—rate for each yr. determined on or before Dec. 20 of prior yr. by state Court Administrator based on secondary market yield for more recent month or on yr. US T-bills, rounded to nearest 1% (549.09). Statutory rate is 5% for 1996. Mississippi Judgments not founded on sale or contract bear interest at per annum rate set by judge from date determined by judge to be fair but not prior to filing of complaint (75-17-7). EFTA01108541 Missouri In tort actions, if claimant made demand for payment or offer of settlement, parties & amt. of judgment or order exceeds demand for payment or offer of settlement, prejudgment interest, at 9%, calculated from date 60 days after demand or offer, or from date demand or offer rejected w/o counteroffer, whichever earlier (408.040). For judgments generally-9% or higher lawful rate stipulated in contract sued on (408.040). Montana Judgments generally-10%. Interest on judgment involving contractual obligation specifying interest rate pd. at that rate (25-9-205). Top Nebraska Prejudgment interest allowed in limited circumstances (45-103.02). Judgments generally-1% above bond equivalent yield, as published by US Sec'y of Treas. of avg. accepted auction of T-bills in effect on date of judgment, if rate not provided by law or agreed by contract (45-103). Nevada Judgments generally—where no rate provided by contract or judgment, judgment draws interest from service of summons & complaint until satisfied at rate equal to prime rate at largest bank in Nevada ascertained by commr. of financial institutions (17.130). New Hampshire In any action on debt or account stated or where liquidated damages sought, interest runs from time of institution of suit (c. 524, §1-a). In all other civil proceedings in law or equity where pecuniary damages for personal injuries, wrongful death, consequential damages, damages to property, business, or reputation, or other loss for which damages recognized there is added forthwith by clerk to damages interest from date of writ or filing of petition (c. 524, §1-c). New Jersey Judgments generally—collection of interest on judgments at legal rate (123 N.J.L. 232, 8A2d 256; see also R. 4:42-11). New Mexico Ct. has discretion to allow prejudgment interest up to 10% from service of complaint (56-8-4). Prejudgment interest statute (56-8-4) applies to all damages in personal injury actions, including non-pecuniary issues (113 N.M. 774, 883 P.2d 251). Prejudgment interest may be awarded for time after claim accrued prior to filing of complaint under 56-8-3, meant to compensate plaintiff for damages from loss of use of funds; 56-8-4, which applies after complaint filed, is meant to foster settlement & prevent delay (872 P.2d. 346). Punitive damages not subject to prejudgment interest (124 NM 721 591; 953 P.2d 1089). Judgments generally—in absence of contract fixing rate, 8 1/4% Rate for judgment based on tortious conduct, bad faith, intentional or willful acts is 15%. Same rate of interest as provided in contract on which judgment based. In no case more than max. rate on written contracts unless judgment based on tortious conduct, bad faith, or intentional or willful acts. When award remanded for EFTA01108542 excessiveness, new award accrues from date of orig. judgment (117 NM 373, 872 P.2d 1326). Postjudgment interest on tort judgments vs. state prohibited (56-8-4(D) and 41-4-19). New York Judgments generally-9% (C.P.L.R. §§5001-5004). Money verdicts, breach of contract, interference w/possession or enjoyment of property, include interest at legal rate from date cause of action first existed or date damage incurred; interest in equitable actions at ct.'s discretion (C.P.L.R. §§5001-5004). Interest runs to date of final judgment at legal rate & is included on total sum awarded (C.P.L.R. §5001[c]). North Carolina Judgments generally—8% (24-1). Interest on award in contract action is contract rate if parties provide; if not, at legal rate from time of breach (24-5). North Dakota Judgments generally—rate in original instrument on which action based not in excess of max.; if no provision then 12% on judgments obtained after Jul. 1, 1981; prior years, rate at time entered (28- 20-34). Top Ohio Prejudgment interest may be available in tort action from date plaintiff gave written notice that cause of action accrued or from date filed, whichever longer if ct. determines lack of good faith effort to settle by party req'd to pay (1343.03[C]). Interest on prejudgment interest is 500/c of fed. short term rate determined by 5703.47 and is not pd. on future damages (§1343.03[1][2][3]). Judgments generally-100k, except judgment on instruments in writing stipulating other lawful rate, in which case interest on judgment is computed at rate specified (§1343.02). Interest computed from date of judgment or order to date money pd. (§1343.03[6]). (Ongoing) Oklahoma Verdict for damages for personal injuries or injury to personal rights, interest at annual rate equal to avg. T-bill rate for preceding yr. plus 4 percentage points added from date suit commenced to earlier of date verdict accepted by ct. as expressly stated in judgment or date judgment filed w/ct. Computation of prejudgment interest begins w/annual rate in effect for yr. in which suit commenced; rate for each succeeding yr. until date judgment is rendered is annual rate in effect for judgments rendered during each yr. Judgments vs. state & political subdivisions bear prejudgment interest at same annual rate not to exceed 10%; judgment, including prejudgment & postjudgment interest, cannot exceed total amt. of liability of governmental entity pursuant to Governmental Tort Claims Act (51-151 et seq.) (12-727). Postjudgment interest—unless otherwise specified by contract, all judgments (including ct.-awarded costs & atty. fees) bear interest at annual rate equal to avg. T-bill rate for preceding yr. plus 4 percentage points. Postjudgment interest accrues from earlier of date judgment rendered as expressly stated in judgment or date judgment filed w/ct. Oregon Judgments generally-9% from date of entry unless other date specified therein. Judgments on EFTA01108543 contracts providing for interest at higher rate bear same interest as contract as of date of entry (82.010). Interest is simple interest unless by contract. Interest accrues on interest accrued prior to date of entry and accrues on atty. fees & costs (82.010). Pennsylvania Judgments generally—interest is at lawful rate (42'8101). (Ongoing) Puerto Rico Judgments generally—interest est'd from time to time by Finance Bd. of Office of Commr. of Financial Institutions (32-App. III-R44-3). Rhode Island Post-judgment interest 12% & accrues on principal of judgment and prejudgment interest (9-12-10). Judgments generally-12% from date of accrual of any civil action, except contractual actions where rate specified (9-21-10). South Carolina No information given South Dakota Judgments generally—interest on judgments & statutory liens excluding mortgages & UCC securities is 10% (54-3-5.1). Top Tennessee Judgments generally-10%, unless based on note, contract, or other writing fixing permissible higher rate. Interest runs from date jury or ct. returned verdict w/o regard to motion for new trial (47- 14-121-122). Texas Judgments in wrongful death, personal injury, & property damage must include prejudgment interest (304.101 et seq.). Judgments generally—if based on contract providing for specific rate, lesser of rate specified (which may be variable) or 18% (Fin. C. §304.002). Otherwise, judgments together w/taxable court costs earn interest compounded annually at rate published by Consumer Credit Comm'r of not less than 10% and not more than 20%. Interest accrues from date judgment rendered (Fin. C. §304.003). Every judgment must state rate to be earned thereon (Fin. C. §304.001). Post-judgment interest (Fin. C. c. 34 subchap. A) does not apply to judgments in favor of taxing unit to collect delinquent taxes under Tax Code, c. 33 subchap. C, or judgment under Fin. C. §304.301, or judgments for unpaid child support under Fam. Code §157.265 (Fin. Code §304.302). Utah Judgments generally—judgments on contract bear interest as agreed, others bear at fed. postjudgment rate as of Jan. 1 of each yr. plus 2% (15-1-4). EFTA01108544 Vermont For judgments generally-12% (12-2903). Virginia Rate is 9%. Where no rate fixed by contract, prejudgment & post-judgment interest charged at judgment rate (6.1-330.54). Except as provided in Art. 3 of UCC & in absence of agreement, time from which interest runs is in discretion of jury; if verdict does not provide for interest, sum bears interest from date of verdict at rate provided. Top Virgin Islands For judgments generally-9% (5-426). Washington Prejudgment interest allowable when liquidated claim or claim for amt. due on specific contract for payment of money & determinable by fixed contract standard for computation w/o reliance on opinion or discretion (74 Wn.2d 25, 442 P.2d 621). For judgments generally—judgments on written contracts providing specified rate bear interest at such rate (4.56.110), if w/in statutory limit (34 Wn. App. 210, 660 P.2d 764) & set forth in judgment. All other judgments, including torts vs. state & muni. corporations (4.56-115) & eminent domain (8.28.040) bear interest at max. permitted under 19.52.020 on date of entry (4.56.110). West Virginia Judgments generally—every judgment for payment of money, except where otherwise provided by law, bears interest from date thereof. Amt. of judgment for special or liquidated damage bears interest from date of right to bring same accrued at 10% (c. 56, art. 6, §31). Judgment on pre- computed consumer credit sale or loan (def'd in c. 46A, art. 1 §102) bears interest until pd. as 10% (c. 46A, art. 3, §111). Wisconsin Judgments generally-12% from date of entry until pd. (815.05[8]) & interest accrues on verdict or decision until judgment entered at rate of 12% (814.04[4]). Foreclosures bear interest at mortgage note rate in effect immediately prior to default (846.12). Wyoming Judgments generally-10%, in absence of agreement (1-16-102[a]). If founded upon contract which prescribes interest, apply contract rate (1-16-102[b]). Top Contact the Knowledge & Information Services Office with inquiries or requests for copies of any resources regarding Civil Procedure [email protected] 1-800-616-6164 EFTA01108545  Last Modified: [August 21, 2001] C2001 — The National Center for State Courts. All rights reserved. This Information Resource was prepared with the support of a grant from the State Justice Institute (SJI-01-N-111). Points of view expressed herein are those of the authors and do not necessarily represent the official position or policies of the State Justice Institute. State SJI Justice Institute EFTA01108546