Post Judgment Interest
PreJudgment Interest
PunItIve damages
munICH re – aLWaYs one steP aHead
In the US, Munich Re provides access to a full range of property-casualty reinsurance and specialty insurance products through Munich Reinsurance America, Inc., American Modern Insurance Group and Hartford Steam Boiler Inspection and Insurance Company. Together, we deal with the issues that affect society and work to devise cutting-edge solutions to render tomorrow’s world insurable. Our clients trust us to develop solutions for the whole spectrum of reinsurance – from traditional reinsurance agreements to the management of complex specialty reinsurance risks. Our recipe for success: we anticipate risks early on and deliver solutions tailored to clients’ needs, creating opportunities to achieve sustained profitable growth.
Introduction
this booklet summarizes Post Judgment Interest, Prejudgment Interest,
and Punitive damages as applied by the various states, provinces and
territories of the united states and Canada.
Claims technicians need to consider these elements to properly evaluate
and reserve a claim.
When precise and up-to-date information is required, you should check
with local counsel as these are constantly changing fields.
since these reviews provide only a brief summary, a complete reading
and analysis of the cases – coupled with specific legal opinions of the
applicable jurisdictional laws – must be completed before significant
decisions are made. In providing this information, the authors do not intend
to provide legal advice.
edited by
Lourdes M. Francisco
,
vice President,
munich reinsurance america, Inc. Claims division
special thanks to:
Robert J. Bates, Jr.
,
Ellen J. Zabinski,
and
Post Judgment Interest
State Interest Allowed Date Accrues Rate of Interest
Alabama Yes Date of Judgment 12%, or rate provided in the contract.
Alaska Yes Date of Judgment Five percentage points above the 12th Federal Reserve District discount rate in effect on date contract made or, if one is specified, interest at the rate specified in the contract, not exceeding the legal rate of 10.5%.
Arizona Yes Date of Judgment 10%, or rate provided in the contract.
Medical malpractice claims – prevailing party receives interest at rate equal to three percentage points above the federal post judgment interest rate (28 U.S.C. § 1961) in effect on date judgment entered, continuing to be adjusted on 6/30 and 12/31 each year, but rate cannot exceed 9%. Interest shall accrue at each adjusted rate until next adjustment, and adjusted interest rate shall not apply to any preceding six-month period.
Arkansas Yes Date of Judgment Judgment entered by circuit court: Rate provided in the contract or 10% per annum, whichever is greater. On any other judgment, 10% per annum, but not more than the maximum rate permitted by the Arkansas Constitution, Article 19, Section 13, as amended (5% per annum above the Federal Discount Rate at the time of the contract).
Judgment entered by district court: Rate provided in contract or 10% per annum, whichever is greater, and on any other judgment at 10%.
California Yes Date of Judgment 10% unless legislature reduces rate to less than 10%, or rate provided in the contract. Post judgment interest against a public entity is assessed at a rate of 7% per annum.
Colorado Yes Date of Judgment Contract – 8% or rate provided in the contract, but parties may stipulate to rates not greater than 45%, compounded annually.
Tort – 9% compounded annually, unless judgment debtor appeals, then rate to be two percentage points above discount rate certified by Secretary of State on 1/1, compounded annually.
Connecticut Yes Negligence cases arising after 5/27/97: 20 days after judgment or 90 days after verdict, whichever is earlier. All other cases: Date of Judgment
10%. For debt arising out of services provided at hospital, court has discretion to award post judgment interest at rate no higher than 5% per year.
Delaware Yes Date of Judgment 5% over Federal Reserve discount rate, or rate provided in the contract.
Post Judgment Interest
State Interest Allowed Date Accrues Rate of Interest District of
Columbia Yes Date of Judgment 6%, or rate provided in the contract. Interest at rate not exceeding 4% is allowed on judgments against District of Columbia. Where judgment is not against District of Columbia or where rate of interest is not fixed by contract, interest is 70% of rate of interest set by Secretary of Treasury pursuant to § 6621 of Internal Revenue Code of 1986 for underpayment of tax to Internal Revenue Service rounded to the nearest full percent or if exactly .25 of 1 %, increased to the next highest full percent, provided that court may lower such rate of interest for good cause shown or upon showing that judgment debtor in good faith is unable to pay judgment.
Florida Yes Date of Judgment Amount stated in contract or, for judgments and decrees entered on or after 1/1/95, interest at rate equal to averaged federal discount rate as established by the Chief Financial Officer of the State of Florida on 12/1 of each year beginning 12/1/94, plus 500 basis points, unless rate is established in written contract or obligation. For time periods before 1/1/95 for which interest is due, use previous statutory rate.
Georgia Yes Date of Judgment Principal amount of judgment bears interest at rate of prime rate as published by the Board of Governors of Federal Reserve System, as published in Statistical Release H.15 or any publication that may supersede it, on day judgment is entered, plus 3%, or rate in written contract or obligation.
Hawaii Yes Date of Judgment
If judgment against state, date of judgment up to, but not exceeding, 30 days after the approval of any appropriation act providing for payment of judgment.
10% per year, 4% if judgment against state.
Idaho Yes Date of Judgment Interest runs at 5% plus base rate of weekly average yield on U.S. Treasury Securities as determined by Idaho State Treasurer on 7/1 for the succeeding year.
Illinois Yes Date of Judgment 9%. By tender of payment of judgment, costs and accrued interest to date of tender, judgment debtor can stop further accrual of interest on same, notwithstanding prosecution of appeal or other action to reverse, modify or vacate judgment. 6% if judgment debtor is unit of local government, school district, community college district, or any other governmental entity.
Indiana Yes Date of Verdict, or court
Post Judgment Interest
State Interest Allowed Date Accrues Rate of Interest
Iowa Yes Date of Judgment
(including future damages). Contract and Tort (not under Comparative Fault Act) – 5% or rate specified in contract on which judgment is
based, not to exceed maximum variable rate of 2% over rate on U.S. Government notes and bonds, calculated monthly.
Tort Comparative Fault Act – Rate of interest shall be calculated as of the date of judgment at a rate equal to the one-year treasury constant maturity index published by federal reserve in H.15 Report settled immediately prior to date of judgment, plus 2%.
Kansas Yes Date of Judgment Contract – Rate provided in the contract not exceeding maximum rate.
All other actions – until 7/1/80, judgments (including judgments against a state or political subdivision) bear interest at 8%. Judgments rendered or unpaid thereafter bear interest at 12% until 7/1/82. Judgments rendered or unpaid thereafter and before 7/1/86 bear interest at 15%. After 7/1/86, post judgment rate is 4% above federal discount rate as of 7/1 preceding date of judgment.
Kentucky Yes Date of Judgment 12% compounded annually or rate specified in contract. If unliquidated damages, court’s discretion to set rate at less than 12%.
Louisiana Yes Ex delicto – legal rates attach from date of judicial demand.
Ex contracto – from date due. Prior to 9/12/80 – 7%; 9/12/80 – 9/11/81 – 10%; 9/12/81 – 1/1/88 – 12%; 1988 – 9.75%; 1989 and 1990 – 11.5%; 1991 – 11%; 1992 – 9%; 1993 and 1994 – 7%; 1995 – 8.75%; 1996 – 9.75%; 1/1/97 – 8/1/97 – 9.25%; 8/2/97 – 12/31/97 – 7.9%; 1998 – 7.6%; 1999 – 6.73%; 2000 – 7.285%; 2001 – 8.24%; 2002 – 5.75%; 2003 – 4.5%; 2004 – 5.25%; 2005 – 6%; 2006 – 8%; 2007 – 9.5%; 2008 – 8.5%, 2009 – 5.5% and 2010 – 3.75%. On or after 1/1/02, rates shall be equal to rates published annually by commissioner of financial institution. Effective judicial interest rate equals 3.25% above discount rate published 10/1 in the Wall Street
Journal.
Maine Yes Date of Judgment For judgments entered on or after 7/1/03, interest equals the rate specified in the contract or weekly average one-year constant maturity treasury yield, as published by the Board of Governors of the Federal Reserve System, for the last full week of the calendar year immediately prior to the year from which post-judgment interest begins to accrue, plus 6%.
Maryland Yes Date of Judgment 10%, or rate provided in the contract.
Massachusetts Yes Date of Judgment 12%, or rate provided in the contract. Not permitted against the Commonwealth in tort cases.
Post Judgment Interest
State Interest Allowed Date Accrues Rate of Interest
Michigan Yes Date of Judgment For complaints filed after 7/1/02: Contract – rate specified in contract if legal at the time instrument executed; if variable rate, interest fixed at rate in effect under instrument at time complaint filed, not exceeding 13% per year compounded annually.
For complaints filed on and after 1/1/87 but before 7/1/02: Contract – 12% compounded annually or rate specified in contract if higher but not exceeding 13%, compounded annually after date of judgment. For complaints filed on and after 1/1/87: Tort – rate certified by state treasurer semi-annually equal to 1% plus average interest rate on five-year U.S. Treasury Notes.
For The Six Months
Preceding The Average Interest Rate Was
7/1/09 2.101% 1/1/09 2.695% 7/1/08 3.063% 1/1/08 4.033% 7/1/07 4.741% 1/1/07 4.701% 7/1/06 4.815% 1/1/06 4.221% 7/1/05 3.845% 1/1/05 3.529%
Tort – Offer of Judgment – rate is increased 2% from date offer rejected by defendant to satisfaction of judgment if offer is filed with the court. If defendant makes an offer which is rejected by plaintiff and a judgment is subsequently rendered against the defendant, interest is not allowed beyond the date the offer is filed with the court. An offer is deemed rejected if not accepted within 21 days after the offer is made.
For claims filed on or after 10/1/86, interest shall not be allowed on “future damages” (defined as personal injury damages accruing after the amount of damages are determined) from date of complaint to date of judgment, unless bona fide settlement offer in tort cause of action not made or filed.
Post Judgment Interest
State Interest Allowed Date Accrues Rate of Interest
Minnesota Yes Date of Judgment Interest rate for each year determined before 12/20 of prior year by State Court Administrator, based on secondary market yield for most recent month on secondary market yield on one-year U.S. Treasury Bills rounded to nearest 1% or 4%, whichever is greater. Floating rate applies to balance of judgments remaining unpaid after 12/31/80. Interest ran at judgment rate of 7% in 1990 and 1991, 5% in 1992, 4% in 1993, 3% in 1994, 6% in 1995 and 5% in 1996, 1997, and 1998, 4% in 1999, 5% in 2000, 6% in 2001, 2% in 2002, 4% in 2003, 4% in 2004, 4% in 2005, 4% in 2006, 5% in 2007, and 4% in 2008 and 2009.
For judgments exceedign $50,000 finally entered on or after 8/1/09, the interest rate shall be 10% per year until paid.
Mississippi Yes Date of Judgment Judgments and decrees founded on contract or sale bear interest at contract rate or, if no rate provided in the contract, 8%. Other judgments set by court.
Missouri Yes Date of Judgment Contracts – 9%, or rate provided in the contract, if higher than 9%.
Torts – Intended Federal Funds Rate, established by the Federal Reserve, plus 5%, until full satisfaction is made. Judgment shall state applicable interest rate, which shall not vary once entered.
Montana Yes Date of Judgment 10%, or rate specified in contract. Interest payable on judgments recovered in the courts of Montana and on the costs incurred to obtain or enforce a judgment.
Nebraska Yes Date of Judgment On actions filed before 7/20/02: 1% above bond equivalent yield, as published by U.S. Secretary of the Treasury of average accepted auction price for last auction of Treasury Bills in effect on date of judgment; rate specified in contract, or rate specified by statute for a particular action.
On actions filed after 7/20/02: 2 percentage points above the bond investment yield, as published by the U.S. Secretary of the Treasury of the average accepted auction price for first auction of each annual quarter of the 26-week U.S. Treasury bills in effect on date of judgment; rate specified in contract or rate specified by statute for a particular action.
Nevada Yes From service of Summons and
Complaint (until satisfied).
Prime rate at the largest bank in Nevada as ascertained by the Commissioner of Financial Institutions on 1/1 or 7/1 immediately preceding the date of judgment, plus 2%, or rate provided in written contract. Future damages draw interest only from entry of judgment.
New Hampshire Yes Date of Judgment Simple interest rate determined on or before 12/1 by State Treasurer based on prevailing discount rate on 26-week U.S. Treasury Bills, plus 2 percentage points, effective first day of following year.
Post Judgment Interest
State Interest Allowed Date Accrues Rate of Interest
New Jersey Yes Date of Judgment For the period 1/2/86 and for each calendar year thereafter, the annual rate of interest shall equal the average rate of return for the corresponding preceding fiscal year terminating on 6/30 of the State of N.J. Cash Management Fund as reported by the Division of Investment in the Department of Treasury.
After 9/1/96: for judgments exceeding $10,000, the rate of post judgment interest as set forth above, plus an additional 2%.
The annual rate of interest was 8.5% in 1991, 7.5% in 1992, 5.5% in 1993, 3.5% in 1994, 5.5% in 1996, 1997, 1998, and 1999, 5% in 2000, 5.5% in 2001, 6% in 2002, 3% in 2003, 2% in 2004, 1% in 2005, 2% in 2006, 4% in 2007, 5.5% in 2008, 4.0% for 2009 and 1.5% in 2010.
New Mexico Yes Date of Judgment Contract – 8.75%, or rate provided in the contract. Tort – Bad faith or intentional and willful acts – 15%. Other Acts – discretionary with the court not exceeding 10%.
State and its political subdivisions are exempt unless law provides otherwise.
New York Yes Date of verdict or the date of the entry of the final judgment, whichever occurs first.
Money judgments bear interest at legal rate of 9%, unless otherwise prescribed by statute. The court may set a lower rate in cases where a judgment is entered against the State or a municipality.
North Carolina Yes Date of Judgment 8% or rate specified in contract, if parties agreed rate applies after judgment.
North Dakota Yes Date of Judgment 12%, or rate provided in the contract. Beginning January 1, 2006, the interest is payable at a rate equal to the prime rate published in the Wall Street Journal on the first Monday in December of each year, plus three percentage points rounded up to the next one-half percentage point. Interest on all judgments entered in the courts of North Dakota before January 1, 2006 must remain at the rate per annum which was legally prescribed at the time the judgments were entered.
Ohio Yes Date of Judgment Interest rate calculated at federal short-term rate, such
that on 10/15, tax commissioner determines federal short-term rates, plus 3% (except for judgment on bonds, bills, notes, or other instruments in writing containing stipulations in writing for interest at some other lawful rate), or rate provided in the contract. The rate for 2009 is 5%. Interest accrues from date of cause of action if lack of good faith effort to settle by party required to pay.
Post Judgment Interest
State Interest Allowed Date Accrues Rate of Interest Oklahoma Yes Date of Judgment or the
date the judgment is filed with the Clerk of the Court, whichever is earlier.
On judgments rendered between 1/1/00 and 1/1/05, judgments bear interest at annual rate equal to average U.S. Treasury Bill rate of preceding calendar year as certified by State Treasurer each January plus 4% or rate provided in the contract. Judgments against state and political subdivisions shall bear interest at same rate but not to exceed 10% per year.
For all judgments rendered on or after 1/1/05, judgments bear interest at an annual rate equal to the prime rate (3.25%), as listed in the first edition of the Wall Street Journal published for each calendar year and as certified to the Administrative Director of the Courts by the State Treasurer on the first regular business day following publication in January of each year, plus 2%. The interest rate in 2009 is therefore 5.25%.
Oregon Yes Date of Judgment, unless some other date is specified in judgment.
9%, or rate provided in the contract, if higher than 9%.
For judgments rendered in an action for injuries resulting from the professional negligence of a person licensed by the Oregon Medical Board or the Oregon State Board of Nursing, the rate of interest on that judgment is the lesser of 5% per annum or 3% in excess of the discount rate in effect at the Federal Reserve Bank in the Federal Reserve district where the injuries occurred.
Pennsylvania Yes Date of verdict; if no verdict,
date of judgment. 6%, or rate provided in the contract.
Puerto Rico Yes Date of Judgment Rate fixed by Finance Board of Office of Commissioner of Financial Institutions in effect when judgment pronounced.
Rhode Island Yes Civil Action – Date of accrual.
Medical malpractice action after 1/1/87 – earlier of written notice or filing action.
12%, unless different rate expressly stipulated and accrues on both principal of judgment and prejudgment interest.
Insurer liable for all interest on judgment, even if in excess of policy limits, if it rejects written offer equal to or less than policy limits at time action accrues. A written offer will be presumed rejected if insurer does not respond within 30 days.
Post Judgment Interest
State Interest Allowed Date Accrues Rate of Interest
South Carolina Yes Date of Judgment A money decree or judgment of this court enrolled or entered: For all judgments entered on or after 7/1/05, the legal rate of interest is equal to the prime rate as listed in the first edition of the Wall Street
Journal published for each calendar year for which the
damages are awarded, plus four percentage points, compounded annually. The South Carolina Supreme Court shall issue an order by 1/15 of each year confirming the annual prime rate. For all judgments entered between 7/1/05 and 1/14/06, the legal rate of interest shall be the first prime rate as published in the first edition of the Wall Street Journal after 1/1/05, plus four percentage points. The rate in 2009 is 7.25%. 8.75% for cases where sum of money shall be ascertained and draw interest according to law.
South Dakota Yes Date of Verdict 10%.
Tennessee Yes Date of Verdict 10%, rate provided by statute or rate provided in the contract, if higher than 10%.
Tort judgments against government – 6% on unpaid balance if paid in installments.
Texas Yes Date of Judgment Contract – rate specified in contract or 18%, whichever is less.
Other actions – prime rate published by Board of Governors of the Federal Reserve System; at least 5% (if prime rate below 5%) and not more than 15% (if prime rate over 15%), compounded annually.
Utah Yes Date of Judgment Rate equals federal post judgment interest rate in 28
U.S.C. § 1961 as of 1/1 of each year, plus 2%, or rate provided in the contract.
Vermont Yes Date of Judgment 12%.
Virgin Islands Yes Date of Judgment 4%. No pre-judgment interest assessed against government of Virgin Islands.
Virginia Yes Date of Verdict, Judgment or
Decree 6%, or rate provided in the contract, whichever is higher. The rate of interest for a judgment shall be
the judgment rate of interest in effect at the time of entry of the judgment and shall not be affected by any subsequent changes to the rate of interest.
Washington Yes Date of Judgment Contracts – Rate specified in the contract, provided that said interest rate is set forth in judgment.
Tortious conduct – 2% points above equivalent coupon issue yield, as published by Board of Governors of Federal Reserve Systems, of average bill rate for 26-week treasury bills determined at first bill market auction conducted during calendar month immediately preceding date of entry.
Post Judgment Interest
State Interest Allowed Date Accrues Rate of Interest West Virginia Yes Date of Verdict, Judgment or
Decree 5%. After 6/7/06, the rate of interest on judgments and decrees for the payment of money, including
prejudgment interest, is three percentage points above the Fifth Federal Reserve District secondary discount rate in effect on 1/2 of the year judgment or decree is entered, not to exceed 11% or be less than 7%. Once the rate of interest is established by a judgment or decree, that rate shall remain constant for that particular judgment or decree, notwithstanding changes in the rate in subsequent years.
Wisconsin Yes Date of Verdict 12%.
Prejudgment Interest
State Type of Action Payable Date Accrues Rate of Interest Alabama Contract and Tort –
Amounts Liquidated or Ascertainable, Accident & Health, and First Party Claims.
Contract – Date of Breach. Tort – Date cause of action accrues.
A&H and First Party Claims – 45 days after written claim and 30 days after electronic claim presented.
Contract – 6% or rate in written contract, not to exceed 8%.
A&H and First Party – 1.5% per month.
Alaska All Contract – Date of Accrual of cause of action.
Tort – Earlier of date process is served on defendant or date defendant receives written notification that injury occurred and claim may be brought unless parties agree otherwise.
3% above the 12th Federal Reserve District discount rate in effect on 1/2 of the year in which the
judgment is entered except when a judgment on a contract bears interest at the rate specified in the contract, if one is specified, not exceeding the legal rate of 10.5%.
No pre-judgment interest for future economic, future non-economic, or punitive damages.
Arizona All Liquidated Damages – Date due.
Unliquidated Claims – Date of Offer of Judgment (when applicable only).
Liquidated Damages – 10%, or rate provided in the contract.
Unliquidated Claims – If offer of judgment made before trial was not accepted and judgment finally obtained was equal to or more favorable to the offeror than the offer, offeree is liable for prejudgment interest on unliquidated claim from date of the offer.
Arkansas Amounts ascertainable
at time of loss. Date ascertainable. 6%, or rate provided in the contract.
California All Contract – Date due or ascertainable.
Contract – unliquidated damages – court’s discretion but no earlier than date action filed.
Other actions – jury discretion.
Offer of Judgment in personal injury actions – date of plaintiff’s first offer exceeded by judgment.
Contract – 10% (for contracts entered into after 1/1/86), or rate provided in the contract.
Other actions – 7%, except for an offer of judgment in personal injury actions (10%).
Colorado Contract, Tort Contract – Date due. Tort – Date action accrues.
Contract – 8%, compounded annually, or rate in written contract.
Tort – 9% compounded annually. Medical malpractice – Prejudgment interest accruing
Prejudgment Interest
State Type of Action Payable Date Accrues Rate of Interest Connecticut Civil Action Civil Action – Discretionary
from date money due or wrongfully withheld. Offer of Compromise – If made 18 months after filing of action, interest is payable from date action filed. If later than 18 months, payable from date offer of judgment was filed.
Civil actions – 10%, except for debt arising out of services provided at hospital; prejudgment interest shall be no more than 5% per year, the awarding of interest in such cases is discretionary.
Offer of Compromise – 8% if plaintiff recovers amount equal to or greater than offer.
Delaware Contract, Property Damage, Personal Injury, Death.
Contract – date payment due. Tort – date of injury, provided that prior to trial plaintiff submitted written settlement demand valid for at least 30 days in an amount less than the amount entered by judgment.
Other Civil Actions – date action accrues.
5% over Federal Reserve discount rate, or rate specified in contract.
District of
Columbia Contract Liquidated Damages – where interest payable by contract, law or usage. Unliquidated Damage – accretionary as to date of accrual only.
Date due. 6%, or rate provided in the contract.
Actions against the District of Columbia: not to exceed 4%.
Florida Contract or Liquidated
Damages. Date due or date of breach. Rate set by Chief Financial Officer of the State of Florida on 12/1 of each year by averaging the
discount rate of the Federal Reserve Bank of New York for the preceding year and then adding 500 basis points, beginning 1/1/95, or rate set in written contract. For amounts accruing before 1/1/95, previous statutory rate of 12% or rate set in contract is applicable.
Georgia Contract – Liquidated Damages. Tort – Liquidated or Unliquidated Damages. Contract – Date of breach (discretionary if unliquidated).
Liquidated Damages – Date of Demand.
Tort – Unliquidated Damages 30 days after written
demand if judgment equals or exceeds demand.
For all actions filed on or after 7/1/03: Prime rate, as published by the Board of Governors of the Federal Reserve System, plus 3%, or rate provided in written contract. For actions filed prior to 7/1/03, contract actions incur 7% rate of interest, or rate provided in contract, and tort actions incur 12%.
Hawaii All Judicial discretion, but earliest is date of injury (tort) or date of breach (contract).
10%, or rate provided in the contract (not to exceed 10%). State is not liable for prejudgment interest for torts of its employees.
Prejudgment Interest
State Type of Action Payable Date Accrues Rate of Interest Idaho Contract – Liquidated
Damages.
Tort, property damage, personal injury or wrongful death.
Date due or date ascertainable.
Tort, property damage, personal injury, or wrongful death – if claimant serves written offer of settlement, and offer is not accepted and a final judgment is reached that is equal or greater than offer of settlement, interest will accrue from the date the offer of settlement was served.
12%, or rate in written contract.
Tort, property damage, personal injury or wrongful death – 5%, plus the base rate in effect at the time the offer of settlement was served. Base rate is weekly average yield on U.S. Treasury Securities as determined by Idaho State Treasurer on 7/1 for the succeeding year.
Illinois Contract – Liquidated
Damages. Date due. 5%, or rate provided in the contract.
Indiana Contract – Ascertainable Amounts
Tort.
Contract – Date due or date ascertainable.
All Actions – Interest begins to accrue on latest of: 15 months after cause of action accrued, six months if not contract or tort; 180 days after medical review panel formed to review medical malpractice claims. Period during which prejudgment interest accrues not to exceed 48 months.
Contract – 8%, or rate provided in the contract. Tort – Court may award interest at an amount between 6% and 10%. No prejudgment interest as part of punitive damages judgment. No prejudgment interest against state or political subdivision.
Iowa All Contract – Liquidated
Damages – Date due. Unliquidated Damages – Date action commenced. Tort – Date action commenced.
Contract and Tort not under Comparative Fault Act – 10%, or rate specified in contract not to exceed maximum variable rate of 2% over rate on U.S. Government notes and bonds, calculated monthly. Tort – Comparative Fault Act – Rate of interest shall be calculated as of the date of judgment at rate equal to the one-year treasury constant maturity index published by federal reserve in H.15 Report settled immediately prior to date of judgment, plus 2%. There is no prejudgment interest for future damages or punitive damages.
State not liable for interest prior to judgment.
Kansas Contract –
Liquidated Damages. Unliquidated – court’s discretion.
Date due and ascertainable. 10%, or rate provided in the contract. Not permitted
Prejudgment Interest
State Type of Action Payable Date Accrues Rate of Interest Kentucky Contract – Liquidated
Damages – as a matter of right.
Unliquidated – at the court’s discretion.
Date due. 8%, or rate in written contract per certain statutory
specifications.
Louisiana All Contract – Date due. Tort – Date of judicial demand. After 1/1/98: 1998 – 7.6%, 1999 – 6.73%, 2000 – 7.285%, 2001 – 8.24%, 2002 – 5.75%, 2003 – 4.5% per annum, 2004 – 5.25%, 2005 – 6%, 2006 – 8%, 2007 – 9.5%, 2008 – 8.5%, 2009 – 5.5% and 2010 – 3.75%. After 1/1/02, rate equal to rate published annually by commissioner of financial institution. Effective judicial interest rate equals 3.25% above discount rate published 10/1 in the Wall Street Journal.
Maine All Date of notice of claim, under oath, served on defendant or date on which complaint filed if no notice is served.
Prior to 7/1/03: Actions under $30,000 – 8%. Actions over $30,000, the interest rate is one–year U.S. Treasury Bill rate, plus 1%, or rate provided in the contract.
After 7/1/03: one-year U.S. Treasury bill rate (weekly average one-year constant Maturity Treasury yield, as published by Board of Governors of the Federal Reserve System for last full week of calendar year prior to the year when prejudgment interest accrues), plus 3%. Small claims action – not recoverable unless rate of interest based on contract/note, then as set forth in contract or note. May not be added to judgment amount in determining sum upon which post judgment interest accrues.
Maryland Contract,
Auto B.I. – if unnecessary delay of trial by
defendants.
Contract – Date due. Auto B.I. – Date of action.
Contract – 6%, or rate provided in the contract, if higher than 6%.
Auto B.I. – rate determined by the court, but in no event at a rate exceeding 10%.
Not permitted against the state.
Massachusetts Contract, Tort Contract – Date of breach or demand if established, otherwise date of action. Tort – Date of
commencement of action.
12%, or rate provided in the contract.
Before 9/17/04: If action against Commonwealth and no rate specified in contract, then rate equals coupon yield equivalent of last average auction price of 52-week U.S. Treasury Bills not to exceed 10%. After 9/17/04: Interest required to be paid by Commonwealth shall be calculated at a weekly average one-year constant maturity Treasury yield as published by Board of Governors of the Federal Reserve System for the calendar week preceding the date of judgment, not to exceed 10%.
Prejudgment Interest
State Type of Action Payable Date Accrues Rate of Interest Michigan All Contract – Date of action.
Tort – Date of action. If offer of judgment by defendant is not less than 90% of the judgment to plaintiff, interest ceases as of date offer filed with the court.
See rates of interest under Post Judgment section. Note: Shared pro rata by Primary and Excess carriers.
Minnesota Contract,
All pecuniary damages. Contract – Date due.
Pecuniary damages – Interest accrues from the earlier of the date the action is commenced or written notice of claim or demand for arbitration, if action is commenced within two years from date of the demand or notice of claim.
Contract – Rate specified.
Pecuniary damages – Interest is based on secondary market yield of one-year U.S. Treasury Bills.
No prejudgment interest is allowed on the part of the judgment representing future damages unless written settlement offer. If prevailing party’s written settlement offer is closer than other party’s to judgment, then interest accrues from date of claim, demand, or commencement of action and interest on special damages from date incurred. However, to take advantage of this rule, settlement offers must be allocated between past damages and future damages in the same proportion as that determined by the trier of fact. If non-prevailing party’s offer is closer to judgment, then interest is calculated on the lesser of the judgment or offer.
Mississippi Liquidated Damages or
bad faith denial of claim. Contract – Date of breach.
Other actions – Determined by judge but not prior to filing of complaint.
Contract – Rate provided in the contract, or 8%. Other actions – Rate set by judge.
Missouri Contract, Tort Contract – date due or date of breach.
Tort – the earlier of a date 90 days after written demand or from the date the demand was rejected without counteroffer.
Contract – 9%, or rate provided in the contract if higher than 9%.
Tort – Intended Federal Funds Rate, as established by Federal Reserve Board, plus 3%, but only allowed when a claimant has made a demand for payment of a claim or an offer of settlement of a claim, the demand was rejected, and the claimant subsequently received a judgment exceeding the demand.
Montana Contract – Liquidated Damages or Ascertainable Amounts. Tort – Liquidated damages or ascertainable amounts or at court’s discretion. Contract – Breach. Tort Injury – 30 days after submitting a written statement of the claim and how the specific sum was calculated.
Prejudgment Interest
State Type of Action Payable Date Accrues Rate of Interest Nebraska All Contract/Liquidated
Damages – Date due. Unliquidated Damages – Offer date if offer of settlement complies with conditions and is exceeded by the judgment.
Liquidated damages – 12%, or rate provided in the contract.
Unpaid balance of unliquidated damages – rate as provided in post judgmnet interest (see above). Prejudgment interest not permitted against the state or its political subdivisions.
Nevada All Date of service of summons and complaint. If defendant makes a written offer that is refused by the plaintiff and plaintiff fails to obtain a more favorable judgment, no interest is payable from the time of service of the summons and complaint and the time of entry of the judgment.
Prime rate at largest bank in Nevada as ascertained by the Commissions of Financial Institutions on 1/1 or 7/1 immediately preceding date of judgment, plus 2%; or rate in written contract. Not applicable to future damages.
New
Hampshire All Contract/Liquidated Damages – Interest runs from filing of suit. Unliquidated Damages – Interest runs from date of writ or filing of petition to date of judgment.
Simple interest rate determined on or before 12/1 by state treasurer based on prevailing discount rate on 26-week U.S. Treasury Bills, plus 2 percentage points, effective the first day of following year.
New Jersey Tort,
Contract (unless notice of claim has been filed under the New Jersey Contractual Liability Act).
Tort – Six months after action accrues or date of complaint, whichever is later.
Offer of Judgment – from date of offer or date of completion of discovery, whichever is later. Non-Tort – discretionary.
Simple interest shall run at the rate of 12% per annum prior to 1/1/88 and thereafter the annual rate of interest shall equal the average rate of return for the corresponding preceding fiscal year terminating on 6/30 of the State of New Jersey Cash Management Fund as reported by the Division of Investment in the Department of Treasury. For judgments in excess of $10,000, the rate is set forth below, plus an additional 2%. The annual rate of interest was 5.5% in 1996, 1997, 1998 and 1999, 5% in 2000, 5.5% in 2001, 6% in 2002, 3% in 2003, 2% in 2004, 1% in 2005, 2% in 2006, 4% in 2007, 5.5% in 2008, 4.0% for 2009 and 1.5% in 2010.
Prejudgment interest is not allowed on any recovery for future economic losses.
Offer of Judgment – If claimant’s offer is not accepted, and verdict is as least as favorable as rejected offer, claimant is allowed 8% interest on the amount of any recovery – but only to the extent it exceeds the amount of the annual rate of interest. No prejudgment interest on recovery of future economic losses. Prejudgment interest may be awarded for claims arising out of or relating to construction, installation or improvements to real property.
Prejudgment Interest
State Type of Action Payable Date Accrues Rate of Interest New Mexico All Contract – Date claim
accrues.
Others – Date complaint is served on defendant.
Court has discretion to allow interest up to 10% or, if contract action, 15%. State and its political subdivisions are exempt under post judgment interest statute (see above), but not under statute codifying interest rate when no written contract exists.
New York Contract, Death Actions, Interference with Possession of Property.
Contract and Interference with Possession of Property – Date damage incurred to date of verdict (court’s discretion).
Wrongful Death – Date of death.
9%, except otherwise provided by statute or rate provided in the contract. In equitable actions, interest, rate and date it accrues from are left to the court’s discretion.
North Carolina All
(in noncontractual actions only applicable to compensatory damages).
Contract – Date of breach. All other – Date action is commenced.
8%, or rate provided in the contract.
North Dakota Contract, Liquidated Damages,
Non-contractual Obligations, Fraud, Oppression and Malice.
Contract – Date due.
Other – Discretion of court or jury.
6%, or rate provided in the contract, not to exceed the legal maximum (defined as 5.5% over the
average rate of interest payable on U.S. Treasury Bills but not less than 7%).
Ohio Contract, Tort –
if court determines plaintiff did not make a good faith effort to settle, no interest is due.
Contract – Date due. Other – Date the action had accrued.
If lack of good faith effort to settle by party required to pay, date accrues from date of cause of action.
Interest rate calculated at federal short term rate, such that on 10/15, tax commissioner determines federal short-term rate, plus 3%. The rate for 2009 is 5%.
Prejudgment Interest
State Type of Action Payable Date Accrues Rate of Interest Oklahoma Contract, Tort Contract – Date due.
Tort – Prior to 11/1/09, date suit filed.
After 11/1/09, no
prejudgment interest shall begin to accrue on tort actions until 24 months after suit commenced. This 24-month limitation does not apply to any tort actions against the State of Oklahoma or its political subdivisions.
Contract – Rate specified.
On judgments rendered between 1/1/00 and 1/1/05, judgments bear interest at annual rate equal to average U.S. Treasury Bill rate of preceding calendar year as certified by State Treasurer each January, plus 4%. Judgments against state and political subdivisions shall bear interest at same rate, but not to exceed 10% per year.
After 1/1/05 but prior to 11/1/09, prejudgment interest shall be computed at an annual rate equal to the prime rate (3.25%), as listed in the first edition of the Wall Street Journal published for each calendar year and as certified to the Administrative Director of the Courts by the State Treasurer on the first regular business day following publication in January of each year, plus 2%. The interest rate in 2009 is therefore 5.25%.
Effective 11/1/09, prejudgment interest shall be determined using a rate equal to the average United State Treasury Bill rate of the preceding calendar year as certified to the Administrative Director of the Courts by the State Treasurer on the first regular business day in January of each year.
Oregon Contract, Ascertainable
Damages Date due. 9%, or rate agreed on by parties.
Pennsylvania Contract
Tort – (Delay Damages) B.I., Death, and P.D.
Contract – Date due.
Tort – One year after the date original process was first served.
Contract – 6% or rate provided in the contract. Tort – Damages for delay shall be calculated at the rate equal to the prime rate (3.25%) as listed in the first edition of the Wall Street Journal published for each calendar year for which damages are awarded, plus 1%, not compounded. The 2009 rate is therefore 4.25%
No interest will be awarded after the defendant has made a written offer of settlement and continued that offer in effect for at least 90 days or until commencement of trial, which offer was refused and the plaintiff did not recover more than 125% of the offer.
Puerto Rico Where court concludes that a party has acted rashly, the court may impose on claims for debts and actions for damages.
Debts – Date action accrues. Damages – Date of
complaint.
Rate fixed by Finance Board of Office of Commissioner of Financial Institutions.
Not permitted against Puerto Rico and political subdivisions.
Prejudgment Interest
State Type of Action Payable Date Accrues Rate of Interest Rhode Island All Personal Injury or Wrongful
Death based on professional negligence: Date of written notice of claim.
All other actions – Date action accrues.
Contract – Rate provided in the contract. Tort – 12%. In civil actions where defendant is covered by liability insurance, if plaintiff makes an offer to defendant’s insurer to settle for less than or equal to the maximum amount of coverage under the policy and defendant’s insurer refuses offer, insurer is liable for all interest due on judgment entered by the court.
Written offer presumed rejected if insurer does not respond within 30 days.
South Carolina Contract,
Ascertainable Sums. Date action accrues. 8.75%, or rate provided in the contract.
South Dakota Liquidated Damages or
Ascertainable Amounts. Date of damage (applicable only to those actions
commencing on or after 7/1/90).
10%, or rate provided in the contract. Not recoverable for punitive, future or intangible damages.
Prejudgment interest on damages arising from inverse condemnation actions shall be 4.5% and applies retroactively to the day the loss or damage occurred in any pending action for inverse condemnation.
Tennessee Awarded based upon equitable principles as an element of damage at the discretion of court or juries.
Date due or the date the
action accrues. Contract – rate provided in the contract or by statute not to exceed maximum rate of 10%.
Other – any rate not in excess of 10%.
Texas All Contract – Date due and ascertainable.
Personal Injury, Wrongful Death and Property Damage – 180 days after defendant receives written notice of claim or on day suit is filed, whichever occurs first.
Contract – 6%, or rate provided in the contract. Tort – prime rate published by Board of Governors of the Federal Reserve System; at least 5% (if prime rate below 5%) and not more than 15% (if prime rate over 15%).
Prejudgment interest does not compound. Not applicable to exemplary damages. Personal Injury, Wrongful Death and Property Damage – not awarded on future damages.
Prejudgment Interest
State Type of Action Payable Date Accrues Rate of Interest
Utah Contract – Ascertainable
Amounts.
Tort – Special Damages actually incurred.
Contract – Date damages ascertainable.
Tort – Date of occurrence of act giving rise to the cause of action.
10%, or rate provided in the contract.
Vermont All Date action accrues. 12%, or rate provided in the contract.
Virginia All at discretion of court
or jury. Discretion of court or jury. 6%, or rate provided in the contract, up to 6%, whichever is higher.
Virgin Islands Identifiable sums of
money. Date due. 9%, prejudgment interest not charged against government of Virgin Islands.
Washington Contract, Liquidated Damages.
Tortious conduct.
Date claim arises. 12%, or rate specified in contract. Not permitted
against state and its political subdivisions. Tortious conduct: interest from date of entry at 2 percentage points above equivalent coupon yield, as published by Board of Governors of Federal Reserve System, of average bill rate for 26-week treasury bills as determined at first bill market auction conducted during calendar month preceding date of entry.
West Virginia Liquidated Damages, Special Damages or Readily Determinable Damages.
Date action accrues. 5%. After 6/7/06, the rate of prejudgment interest
is three percentage points above the Fifth Federal Reserve District secondary discount rate in effect on the second day of January of the year in which the judgment or decree is entered, not to exceed 11%, or be less than 7%.
Wisconsin Contract, Liquidated
Damages, Other Tort. Contract – Date of breach.
Liquidated Damages – Date due.
Other Tort – If plaintiff makes offer to settle and is refused, and plaintiff obtains judgment equal to or greater than offer, then plaintiff is entitled to interest from date of offer. If defendant’s offer is refused, plaintiff is not entitled to interest unless plaintiff obtains judgment equal to or greater than offer.
Contract – Rate specified. Liquidated Damages – 12%. Offer of Judgment – 12%.
Wyoming Contract, Liquidated Damages.
Conversion – at discretion of court.
Date debtor receives notice
Punitive Damages
State Insurable Insurable if Vicarious Duty to Defend Tort Reform
Alabama Yes Yes Yes Yes
Alaska Yes
(For gross negligence, but not for willful misconduct).
Yes Yes Yes
Arizona Yes Yes Yes Yes
Arkansas Yes
(Not arising from intentional torts). Yes Yes Yes
California No
(Except possibly for punitive
damages imposed in other states for grossly negligent conduct).
Yes Yes Yes
Colorado No Undecided Yes
Connecticut Yes, if statutorily imposed.
No, if directly assessed against the insured, or if the insured’s actions are intentional.
Yes Yes Yes
Delaware Yes
(Unless specifically excluded by the policy).
Yes Yes Yes
District of
Columbia Yes, for negligent acts.(No, for intentional acts.) Yes Yes
Florida No Yes Yes Yes
Georgia Yes
(Unless explicitly excluded by the policy).
Yes Yes Yes
Hawaii Yes
(If specifically included in policy). Yes (If specifically included in
policy).
Yes Yes
Idaho Yes
(Unless specifically excluded). Yes Yes Yes
Illinois No Yes Yes
(If any claim arguably within the scope of coverage).
Yes
Indiana No Yes No
(As to claims for punitive damages).
Punitive Damages
State Insurable Insurable if Vicarious Duty to Defend Tort Reform Kansas No, if directly assessed against the
insured. Yes Yes
Kentucky Yes
(For grossly negligent, not intentional, conduct).
Yes
(Not for intentional conduct).
Yes Yes
Louisiana Yes
(Unless specifically excluded). Yes Yes Yes
Maine No Yes
(Based on federal court decision).
Yes
Maryland Yes Yes Yes Yes
Massachusetts No Undecided Yes
Michigan Yes
(Based on federal court decision). Yes(Based on federal court
decision).
Yes Yes
Minnesota No Yes
(Under common law and allowed by statute).
Yes
(If any claim arguably within the scope of coverage).
Yes
Mississippi Yes
(Except for auto cases; may be excluded by endorsement).
Yes Yes Yes
Missouri Yes
(Where insured is government entity).
Yes Yes Yes
Montana Yes
(Must be expressly included in contract).
Yes
(Must be expressly included in contract).
Yes Yes
Nebraska Not recognized at common law. Undecided Yes
Nevada No Undecided Yes
New Hampshire Yes, unless expressly excluded by
policy. Yes Yes Yes
New Jersey Probably no
(The New Jersey Supreme Court has recognized that there is no declaration by the Court or the Leg-islature that punitive damages are uninsurable).
Punitive Damages
State Insurable Insurable if Vicarious Duty to Defend Tort Reform
New Mexico Yes Yes Yes Yes
New York No Undecided Yes Yes
North Carolina Yes, unless specifically excluded.
(Not for intentional acts.) Yes, but may be specifically excluded. Yes Yes
North Dakota Yes if expressly included in a policy (except for intentional or criminal acts).
Undecided Yes
Ohio No No Yes
Oklahoma No Yes Yes Yes
Oregon Yes
(Not for intentional acts). Yes, but only for negligent acts. Yes Yes
Pennsylvania No Yes Limited to claims
covered by the policy. Yes
Puerto Rico Not recognized.
Rhode Island No Undecided Yes
South Carolina Yes Yes Yes Yes
South Dakota No Undecided Yes
(If any claim arguably falls within the policy’s coverages).
Yes
Tennessee Yes
(Not for intentional acts). Yes Yes Abolished joint and several
liability by case law.
Texas Yes, but only if covered by insurance policy and not outweighed by public policy interest in requiring insured to bear the cost.
Yes Yes
(If any claim arguably falls within the policy’s coverages).
Yes
Utah No No Yes
Vermont Yes Yes Yes Yes
Virgin Islands No
(Insurable if policy contains
language specifically required by VI. ST. T. 22 § 815).
No
(Insurable if policy contains language
specifically required by VI. ST. T. 22 § 815).
Punitive Damages
State Insurable Insurable if Vicarious Duty to Defend Tort Reform Virginia Yes
(Not for intentional acts). No Yes Yes
Washington Yes Undecided Yes
West Virginia Yes (Not for intentional acts). Yes Yes Yes
Wisconsin Yes (But not for uninsured motorist
policies). Yes Yes Yes
Post Judgment Interest
PreJudgment Interest
PunItIve damages
Post Judgment Interest – Canada
Province Type of Action
Payable Date Accrues Rate of Interest
Alberta All Date from which judgment is payable to date judgment first satisfied.
Rate fixed by Lieutenant Governor in Council by regulation before beginning of year.
British Columbia All Date of Judgment or date money is payable under the judgment, whichever is later. Court has discretion to fix date from which interest is to run.
Rate fixed by Registrar bi-yearly (1/1 and 7/1). Equal to prime lending rate. Court may vary rate. Annual simple interest rate equal to the prime lending rate of the banker to the government, calculated for first six months of year at interest rate as of 1/1 and for second six months of year at interest rate as of 7/1.
Manitoba All actions unless the Court orders otherwise, or parties agree that no rate of post judgment interest applies or that no post judgment interest is payable.
Date of Pronouncement of the Order, notwithstanding stay or appeal of Order.
Bank rate at end of first day of quarter, for the quarter in which the order is pronounced. Court may vary rate if parties agree as to special rate of interest.
New Brunswick All, including costs, subject to
the discretion of the Court. Date of Verdict or Judgment. Rate fixed by Rules of the Court. After 3/15/94 – 7% per year, or rate as parties
agree as to special rates of interest.
Newfoundland Judgments in all actions,
except on interest. Date Judgment is payable until satisfied. Rate in effect on the last day of each three-month period beginning on the day
on which the judgment debt is payable under the judgment. Effective 1/1/09, interest rate is 2%.
Northwest
Territories All; subject to the discretion of the court. Date trial judgment pronounced and date money payable thereunder, whichever is the later. Court has discretion to fix date from which interest is to run.
By Order of the Commissioner, the rate will be the prime business rate at 1/1 for the first six months of the year and 7/1 for the last six months of the year. Court has discretion to increase or decrease rate of interest.
Nova Scotia Every Judgment Debt. Time of rendering verdict or giving judgment notwithstanding suspension of verdict/giving of judgment or an appeal.
5%, or by regulation within meaning of Regulations Act.
Nunavut All, subject to the discretion of
the Court. The latter of the date the judgment is pronounced and
the day money is payable under the judgment, notwithstanding postponement of judgment, an appeal or other proceedings. Court has discretion to fix day from which interest should run.
The prime business rate as of 1/1 for the first six months of the year, and the prime business rate as of 7/1 for the last six months of the year. Court has the discretion to disallow, to increase or decrease the rate of interest, or to fix day from which interest should run.
Post Judgment Interest – Canada
Province Type of Action
Payable Date Accrues Rate of Interest
Ontario All money owing under an order including costs fixed or to be assessed; subject to the discretion of the Court. Interest shall not be awarded where interest is payable by a right other than under the post judgment interest statute. Court has discretion to disallow interest.
From date order was made; subject to the discretion of the Court to set interest for a different period.
Bank rate at end of first day of the last month of the quarter preceding the quarter in which the date of the order falls, rounded to the next higher whole number where the rate includes a fraction + 1%. The interest rate for the first quarter of 2010 is 2.0%. The current rate is available at: http://www.
attorneygeneral.jus.gov.on.ca/english/ courts/interestrates.asp.
Prince Edward
Island Any judgment debt rendered pursuant to any civil proceeding including costs assessed or fixed by Court, but excluding where interest payable by right other than under the post judgment interest statute. Court has discretion to disallow interest.
From date of court order. Court has discretion to allow interest for a different period.
Rate established by the Bank of Canada as the minimum rate the Bank of Canada makes short-term advances to banks at the end of the first day of the last month of the quarter in which the date of the order falls, rounded to next highest whole number where the bank includes a fraction plus 1% and published quarterly in the Gazette. Court has discretion to allow interest at a different rate.
Québec Contract and Tort Date of Judgment. Legal rate or contract rate.
Plus: variable indemnity based on rates published quarterly by Minister of Revenue.
Saskatchewan All Judgments debts. Date of Verdict or Judgment is given, notwithstanding an appeal, unless otherwise ordered by the court,.
5% per annum.
Yukon All, except by consent judgment (unless debtor consents) or if interest payable by right other than under the post judgment interest statute.
Day judgment pronounced or date money is payable thereunder.
Court has discretion to fix a different date from which interest is to run.
Prime rate (lower rate of interest quoted by chartered banks to borrowers for prime business loans, as published by Bank of Canada in Bank of Canada
Review) for the first six months of the
year calculated at prime rate as of 1/1 and for the last six months of the year calculated at prime rate as of 7/1. Court has discretion to vary rate of interest.
Prejudgment Interest – Canada
Province Type of Action
Payable Date Accrues Rate of Interest
Alberta All, subject to the discretion of the Court to disallow. Interest shall not be awarded on pecuniary loss identified after day of judgment and identified by Court, interest, exemplary or punitive damages, costs, on borrowed money or interest on borrowed money, money paid into the court and accepted or contained in an offer of judgment or an offer to settle made and accepted, judgment on consent (unless agreed to by parties), if agreement between the parties as to interest or if payment of interest is otherwise provided by law.
Date cause of action arose to date of judgment. Court has discretion to set interest for a different period.
Rate of pecuniary damages fixed by Lieutenant Governor in Council before beginning of year; if no rate prescribed, rate from previous year will stay in effect. Non-compounding. 4% per year on non-pecuniary damages fixed by law. Court has discretion to increase or decrease rate.
British Columbia All pecuniary judgments, except
pecuniary loss arising after the date of order, if agreement between parties, interest, costs, if waiver by creditor, or non-pecuniary damages arising from personal injury or death.
Special Damages – Calculated from end of six months in which incurred to the date of the order on the total of the special damages incurred. General Damages – date on which action arose to date of order.
Rate set by court.
Manitoba All, subject to discretion of the Court. Interest shall not be awarded on consent judgments (unless agreed to by the parties), if agreement between the parties as to interest or if payment of interest is otherwise provided by law, non-pecuniary damages, punitive or exemplary damages or by agreement between the parties.
Liquidated Amounts – date cause of action arose to date order is made.
Unliquidated Amounts – date written notice of claim given to liable party to date order is made. Special Damages: amount of special damages incurred in each six month period following date of notice less amount of liability of unsuccessful party reduced pursuant to statutes, calculated from first day of each six month period to date order is made. Court has discretion to set interest for a different period.
Minimum rate at which Bank of Canada makes short term advances to the banks at end of the day of the first quarter for the quarter in which the relevant proceeding is commenced, rounded off to the nearest .5% and published quarterly in the Gazette unless there is agreement between parties. 3% discount for future damages until altered by regulation. Quarterly interest rate for the quarter beginning 7/1/1986 and for all previous quarters is 9% per annum.
Court has discretion to increase or decrease interest.
New Brunswick Within Court’s discretion for all proceedings for recovery of debt or damages, except non-pecuniary loss of automobile accident plaintiff.
Whole or any part of period between the date the cause of action arose and the date of judgment.
Prejudgment Interest – Canada
Province Type of Action
Payable Date Accrues Rate of Interest
Newfoundland Judgments for the payment of money or where money is owing, except monetary loss arising after the day of judgment and that is identified by the Court, interest, exemplary or punitive damages, costs, borrowed money or interest on borrowed money, money paid into court and accepted in satisfaction of claim, consent judgment (unless agreed to by the parties), between the parties regarding interest, or interest payable by another rule of law. Within discretion of Court to disallow interest.
Date cause of action arose to the date of judgment. No interest payable for actions arising before 4/2/84. Court has discretion to award interest for a different period.
Rate determined by averaging interest rates in effect during the period. Rate for damages for expenses or lost income determined by the total of those damages sustained within the 3-month period beginning on the day the cause of action arose and whithin each subsequent 3-month period, and calculating intrerest from the last day of each 3-month period to the day of judgment, on the total of the damages sustained within the 3-month period, at the interest rate in effect or the last day of the 3-month period.
Effective 1/1/09, interest rate is 2%. Court has discretion to award interest at another rate.
Northwest
Territories Judgments in all actions, except exemplary or punitive damages, interest, costs, pecuniary loss arising after day of the judgment and that is identified by a finding of the court, where a consent judgment is entered (unless debtor consents), or where interest is payable by right other than the prejudgment interest statute. Within discretion of Court to disallow interest.
Liquidated amounts – date the cause of action arises to date of judgment.
Unliquidated amounts – date written notice of claim given to person liable to date of judgment.
For Special Damages – interest calculated on total of such damages incurred at end of period commencing with notice and ending with whichever 1/1 or 7/1 first follows, then at end of each subsequent 6-month period, and at the day of judgment. Within discretion of Court to award interest for a different period.
Prime business rate (Bank of Canada Review) at 1/1 for the first six months of the year and 7/1 for the last six months of the year.
Rate of interest for capitalized value of award for the pecuniary damages, to extent it reflects difference between estimated investment and price inflation rates, is 2.5% per year.
Nova Scotia Judgments awarded in actions for recovery of debt or damages, except Court has discretion to disallow interest if the interest is payable by agreement or otherwise by law, the claimant has not been deprived of the use of money awarded, or the claimant is responsible for undue delay in litigation.
When cause of action arises to date of judgment after trial or after any subsequent appeal. Court has discretion to reduce period if the interest is payable by agreement or otherwise by law, the claimant has not been deprived of the use of money awardedd, or the claimant is
Rate is set by the court. Rate of interest to determine capitalized value of award of future pecuniary damages, to the extent it reflects difference between estimated investment and price inflation, is 2.5% per year. Court has discretion to reduce rate if the interest is payable by agreement or otherwise by law, the claimant has not been deprived of the use of money awarded,
Prejudgment Interest – Canada
Province Type of Action
Payable Date Accrues Rate of Interest
Nunavut Judgments in all actions, except exemplary or punitive damages, interest, costs, pecuniary loss arising after day of judgment and identified by finding of Court, where a consent judgment is entered (unless judgment debtor consents), or where interest is payable by right other than under prejudgment interest statute. Court has discretion to disallow interest.
Liquidated Claim: from the day the cause of action arose to the date of judgment.
Unliquidated Claim: from the day of notice in writing of claim to person liable to the date of judgment.
Special Damages: total of such damages incurred at end of period commencing with giving of notice in writing and ending with whichever of 1/1 or 7/1 first allows; at end of each subsequent six month period; and at date of judgment.
Court has discretion to fix another day from which interest is to run.
The prime business rate as of1/ 1 for the first six months of the year, and the prime business rate as of 7/1 for the last six months of the year. Rate of interest to determine capitalized value of award of future pecuniary damages, to extent it reflects difference between estimated investment and price inflation, is 2.5% per year. Court has discretion to increase or decrease the rate of interest.
Ontario Judgments for the payment of money in all actions, except exemplary or punitive damages, interest, costs, pecuniary loss arising after the date of the order and that is identified by a finding of the court, advance payment made toward settlement of the claim, where a consent judgment is entered (except by consent of debtor), or where interest is payable by right other than under the prejudgment interest statute. Court has discretion to disallow interest.
Date cause of action arose to the date of order. Court has discretion to allow interest for another period.
Bank rate at end of first day of last month of the quarter preceding the quarter in which the proceeding was commenced, rounded to nearest tenth of percentage point except for B.I. non-pecuniary loss which rate currently set by rules of court at 5% per year. For past pecuniary loss, the rate of interest shall be calculated on the total past pecuniary loss at the end of each six-month period and at date of order. The interest rate for the first quarter of 2010 is .5%. The current rate is available at: http://www.
attorneygeneral.jus.gov.on.ca/english/ courts/interestrates.asp.
Rate of interest to determine amount of award of future pecuniary damages, to extent it reflects difference between estimated investment and price inflation, is 15-year period that follows the start of the trial, the average of the value for the last Wednesday in each month of the real rate of interest on long-term Government of Canada real return bonds, as published for the 12 months ending on August 31 in the year before the year in which trial begins, less 1% and rounded to the nearest .25%; and for any later period, 2.5% per year. Court has discretion to allow interest at a higher or lower rate.
