Judgement Interest Reform
Prejudgment Interest Rate Reform – S.B. 75
Kansas – 2023
Provides that the rate of legal interest for civil tort actions where prejudgment interest is awarded equals the federal discount rate plus two percent.
Problem
Although well‑intended, the practical effects of prejudgment interest statutes can be inequitable and counter‑productive. Prejudgment interest laws can, for example, result in over‑compensation, hold a defendant financially responsible for delay the defendant may not have caused, and impede settlement.
ATRA's Position:
At a time when policymakers are attempting to lower the cost of the liability system in an equitable and just manner, prejudgment interest laws that currently exist and new proposals should be reviewed to ensure that they are structured fairly and in a way designed to foster settlement. At a minimum, the interest rate should reflect prevailing interest rates by being indexed to the treasury bill rate at the time the claim was filed and an offer of judgment provision should be included.
Opposition Opinion:
The personal injury bar’s argument in support of prejudgment interest – that prejudgment interest compensates the plaintiff fully for losses incurred, encourages early settlements, and reduces delay in the disposition of cases – fails to address the hardship faced by defendants held financially responsible for litigation delays they may not have caused.
Judgment Interest Reform: H.B. 2678 (2017)
Sets the pre and post judgment interest rate at two
Sets the pre and post judgment interest rate at two percentage points above the Fifth Federal Reserve District secondary discount rate provided the rate does not exceed nine percent or be less than four percent.
Prejudgment Interest Rate Reform: H.B. 223 (2017)
Lowers the prejudgment interest rate from 12% to 6%. A
Lowers the prejudgment interest rate from 12% to 6%. A judgment for unpaid child support will remain at the 12% rate. A judgment on a contract, note, or other written obligation will follow the interest rate specified in the contract. If an administrative law judge determines that a denial, delay, or termination in the payment of income benefits was without reasonable foundation, the interest rate will be 12%.
Prejudgment Interest Rate Reform: H.B. 375 (1995)
Sets the prejudgment interest rate at the 52 week discount
Post-Judgment Interest: H.B. 2162 (1994)
Applies only to postjudgment interest on medical liability actions, including
Applies only to postjudgment interest on medical liability actions, including those resolved through ADR. The postjudgment interest rate is tied to the federal postjudgment interest rate and now has a floor of 3% and a ceiling of 9%.
Judgment Interest: H.B. 1214 (1997)
Sets judicial interest to the average Treasury Bill Rate for
Sets judicial interest to the average Treasury Bill Rate for 52 weeks plus 2%. Provides varying rates of interest for actions pending or filed during the last 10 years.
Post- Judgment Interest Rate Reform: H. 3008 (2005)
Reduced post judgment interest from a flat 12 percent to
Post-Judgment Interest Reform: H.B. 393 (2005)
Specified that post-judgment interest is to be calculated at an
Specified that post-judgment interest is to be calculated at an interest rate equal to the Federal Funds Rate plus five percent.
Judgment Interest Rate Reform: S.B. 576 (2006)
Established that the rate for pre-and post-judgment interest may not
Established that the rate for pre-and post-judgment interest may not exceed 11 percent per year or by less than 7 percent per year.
Judgment Interest Reform: Special Session S.B. 14 (2011)
Changes the pre- and post judgment interest rate in all
Changes the pre- and post judgment interest rate in all civil cases from 12 percent to the Federal Reserve prime rate plus one percent, and provides the rate to be set twice a year (January 1 and July 1).
Judgment Interest: S.B. 69 (2014)
Requires that in order for a plaintiff to receive prejudgment
Requires that in order for a plaintiff to receive prejudgment interest, the plaintiff shall have tendered an offer of settlement. S.B. 69 provides that prejudgment interest is only calculated from the date of a qualifying offer. Under this legislation, the prejudgment interest rate is limited to two percentage points above the prime rate, as published by the Federal Reserve, but it may not be lower than 5% or higher than 10%.
Prejudgment Interest Reform: HB 4 (2003).
Prejudgment Interest Reform: HB 971 (1995).
Prejudgment Interest Reform: SB 6 (1987).
Prejudgment Interest- H.B. 2982 (2012)
Prejudgment Interest: H. 3403 (2000).
Prejudgment Interest Rate Reform: HB 5885 (1987).
Judgment Interest Reform: S.B. 1080
Judgment Interest Reform: S.B. 1080 (2013)
Prejudgment Interest Reforms: HB 1603 (2009)
Provides that prejudgment interest does not begin to accrue until
Provides that prejudgment interest does not begin to accrue until two years after the beginning of a lawsuit; reduced the interest rate charged.
Held unconstitutional by the Oklahoma Supreme Court in Douglas v. Cox Retirement Properties, June 2013.
Prejudgment and Postjudgment Interest Reform: HB 2661 (2004).
Prejudgment Interest Reform: SB 629 (2003).
Prejudgment Interest Reform: SB 488 (1986).
Prejudgment Interest Reform: HB 140 (2001); Amended RSA 336:1.
Prejudgment Interest Reform: LB 298 (1986).
Prejudgment Interest Reform: H.B. 393 (2005); § 355.176 R.S.Mo.
Prejudgment Interest Reform: HB 700 (1987).
Prejudgment Interest Reform: SB 2078 (1986).
Prejudgment Interest Reform: HB 5154 (1986).
Prejudgment Interest Reform: HB 700 (1987).
Prejudgment Interest Reform: SB 2078 (1986).
Prejudgment Interest Reform: HB 5154 (1986).
Prejudgment Interest Rate Reform: LD 2520 (1988).
Prejudgment Interest Rate Reform: (1997).
Prejudgment Interest Rate Reform: HF 693 (1997); Amended Iowa Code § 535.3.
Prejudgment Interest Rate Reform: HB 1690 (1987).
Prejudgment Interest Rate Reform: SF 482 (1987).
Prejudgment Interest Reform: HB 792 (2003).
Judgment Interest Rate Reform: H.B. 567 (2011)
Provides that the judgment interest rate will be set in
Provides that the judgment interest rate will be set in accordance with the interest rate as set by the Chief Financial Officer based on the discount rate of the Federal Reserve Bank of New York for the preceding 12 months plus 400 basis points (4 percent). The interest rate on the judgment is to be adjusted annually on January 1 of each year.
Prejudgment Interest Reform: SB 165 (1995).
Judgment Interest Reform: S.B. 207 (2011); Amended Code of Ala. § 6-5-410.
Changes the rate of interest on judgments in Alabama from
Changes the rate of interest on judgments in Alabama from 12% to 7.5%. Prior to the enactment of S.B. 207, a defendant who lost a lawsuit and chose to appeal had to begin paying 12% post-judgment interest on the amount the court or jury awarded the plaintiff, creating a significant financial deterrent to appealing an unjust verdict.