(215) 864-6322 Interest – Pre & Post Judgment

1 (215) 864-6322 Interest Pre & Post JudgmentThis chart covers, generally, the topic of Interest as it relates to contract and negligence claims. Certain exceptions may apply, specific situations may be addressed in separate statutes, and the law is subject to change. Contact White and Williams LLP for additional information. ALABAMAP rejudgment Contract Actions Rate: If there is no written contract, 6% per year. Otherwise, use the rate in the contract, but not to exceed 8% per year. Ala. Code 8-8-1; Miller & Co. v. McCown, 531 888 (Ala. 1988). Interest can be awarded where an amount is certain or can be made certain as to damages at the time of breach.

2 Miller & McCown. Accrual Date: From the date of the breach. Ala. Code 8-8-8. Tort Actions Rate: 6%. [P]rejudgment Interest is allowable at the legal rate in noncontract cases where the damages can be ascertained by mere computation, or where the damages are complete at a given time so as to be capable of determination at such time in accordance with known standards of value. Nelson v. AmSouth Bank, , 622 So 2d 894 (Ala. 1993); Ala. Code 8-8-1. Accrual Date: Date of injury if the property destroyed or injured has an ascertainable money value. Atlanta and Birmingham Air Line Railway v. Brown, 48 So. 73 (Ala. 1908). Post-JudgmentRate: Judgments for the payment of money bear the contract rate of Interest , if stated in the contract.

3 All other judgments bear the rate of per annum, the provisions of 8-8-1 notwithstanding. Code of Ala. 8-8-10; Mayo v. Lawter, 974 312 (Ala. Civ. App. 2007). Accrual Date: Date of Judgment . Ala. Code 8-8-10. ALASKAP rejudgment Prejudgment Interest is not permitted for future economic damages, future noneconomic damages, or punitive damages. Alaska Stat. Contract ActionsRate: The rate in the contract as long as it does not exceed the state s legal rate of and the rate is set out in the Judgment or decree. If there is no rate in the contract, 3% above the 12th Federal Reserve District discount rate in effect on January 2 of the year in which the Judgment is entered.

4 Alaska Stat. Accrual Date: Unless the parties have agreed otherwise, whichever date is earlier: (i.) the date the defendant receives written notification that an injury has occurred and that a claim may be brought; or (ii.) the date the defendant is served with process. Alaska Stat. Tort Actions Rate: 3% above the 12th Federal Reserve District discount rate in effect on January 2 of the year in which the Judgment is entered. Alaska Stat. Accrual Date: Unless the parties have agreed otherwise, whichever date is earlier: (i.) the date the defendant receives written notification that an injury has occurred and that a claim may be brought; or (ii.)

5 The date the defendant is served with process. Alaska Stat. Post Judgment Contract Actions Rate: The rate in the contract as long as it does not exceed the state s legal rate of and the rate is set out in the Judgment or decree. If there is no rate in the contract, 3% above the 12th Federal Reserve District discount rate in effect on January 2 of the year in which the Judgment is entered. Alaska Stat. Accrual Date: Date of Judgment . Alaska Stat. Tort Actions Rate: 3% above the 12th Federal Reserve District discount rate in effect on January 2 of the year in which the Judgment is entered. Alaska Stat. Accrual Date: Date of Judgment .

6 Alaska Stat. ARIZONAP rejudgment A court can award Interest on a liquidated claim whether based on contract or tort. Alta Vista Plaza v. Insulation Specialists Co., 919 176 (Ariz. Ct. App. 1995). A court cannot award prejudgment Interest for any unliquidated, future, punitive or exemplary damages. Ariz. Rev. Stat. 44-1201. Contract Actions Rate: The lesser of 10% per year or 1% plus the prime rate (as published by the board of governors of the federal reserve system in statistical release or any publication that may supersede it on the date that the Judgment is entered). Ariz. Rev. Stat. 44-1201. Accrual Date: Interest should be calculated from the date the claim becomes due.

7 Gemstar Ltd. v. Ernst & Young, 917 222 (Ariz. 1996). Where no definite time for payment is stated, from the time of demand for payment. Fairway Builders v. Malouf Towers Rental Co., 603 513 (Ariz. Ct. App. 1979). Tort Actions Rate: The lesser of 10% per year or 1% plus the prime rate (as published by the board of governors of the federal reserve system in statistical release or any publication that may supersede it on the date that the Judgment is entered). Ariz. Rev. Stat. 44-1201. Accrual Date: Date of demand for a sum certain, not from the date of loss. Demand can be made by filing a complaint or by demanding payment.

8 Alta Vista Plaza. Offer of Judgment An offer of Judgment can affect the recovery of Interest . See Ariz. R. Civ. P. 68. Post Judgment A court may not award Interest on future, punitive or exemplary damages. Ariz. Rev. Stat. 44-201. Contract and Tort Actions Rate: The lesser of 10% per year or 1% plus the prime rate (as published by the board of governors of the federal reserve system in statistical release or any publication that may supersede it on the date that the Judgment is entered). Ariz. Rev. Stat. 44-1201. Accrual Date: Date of Judgment . Employer s Mut. Casualty Co. v. McKeon, 821 766 (Ariz. Ct. App. 1991).

9 ARKANSASP rejudgment Prejudgment Interest only permitted when the amount of damages is definitively ascertainable by mathematical computation, or if the evidence furnishes data that makes it possible to compute the amount of damages without reliance on opinion or discretion. Woodline Motor Freight v. Troutman Oil Co., 938 565 (Ark. 1997). Contract Actions Rate: 6% if no Interest rate specified in the contract. Ark. Code Ann. 4-57-101(d) (eff. Aug. 2013); Mo. & N. Ark. v. Entergy Ark., Inc., 2013 Dist. LEXIS 139204 ( Ark. Sept. 27, 2013) . Accrual Date: Date of Loss. Reynolds Health Care Servs. v. HMNH, Inc., 217 797 (Ark.)

10 2005). Tort Actions Rate: 6% if no Interest rate specified in the contract. Ark. Code Ann. 4-57-101(d) (eff. Aug. 2013); Mo. & N. Ark. ; Wooten v. McLendon, 612 105 (Ark. 1981). Accrual Date: Date of Loss. Reynolds Health Care. Post Judgment Judgments against a county shall not bear Interest . Ark. Code Ann. 16-65-114. Contract Actions Rate: The rate in the contract or a rate equal to the Federal Reserve primary credit rate in effect on the date on which the Judgment is entered plus two percent (2%), whichever is greater. Ark. Code Ann. 16-65-114. Accrual Date: Date of Judgment . Ark. Code Ann. 16-65-114; Jameson v.