Category Overview

Interest Paid on Judgments

Category Description

Damages usually accrue interest to compensate the plaintiff for the lost time value of money. Whether the interest rate reflects the rates of the current economy can significantly inflate or deflate the value of a lawsuit award.

1 Factor

  • What is the interest rate applied to a judgment?

    Why does this matter?

    Some states have set interest rates, others tie them to fluctuating rates like those put out by the Federal Reserve. We recommend the latter so damages acrue interest in the same way they would in the economy and aren't artificially inflated or deflated.

    State Ratings for Factor

    State Rating
    Alabama F
    Alaska A
    Arizona A
    Arkansas D
    California D
    Colorado A
    Connecticut D
    Delaware B
    Florida B
    Georgia A
    Hawaii D
    Idaho B
    Illinois D
    Indiana D
    Iowa A
    Kansas B
    Kentucky F
    Louisiana A
    Maine B
    Maryland D
    Massachusetts F
    Michigan A
    Minnesota B
    Mississippi F
    Missouri B
    Montana D
    Nebraska A
    Nevada A
    New Hampshire A
    New Jersey A
    New Mexico F
    New York D
    North Carolina D
    North Dakota A
    Ohio A
    Oklahoma B
    Oregon D
    Pennsylvania A
    Rhode Island F
    South Carolina B
    South Dakota D
    Tennessee B
    Texas B
    Utah A
    Vermont F
    Virginia D
    Washington A
    West Virginia B
    Wisconsin A
    Wyoming D
    State Ratings

1 Model Policy

  • Prejudgment and Post-Judgment Interest Act

    Ties interest rates on lawsuit judgment awards to the U.S. Treasury bill rate.
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