Is prejudgment interest simple or compound?
Is prejudgment interest simple or compound?
Although interest in commercial settings is always compounded, courts sometimes award prejudgment interest using simple interest, which is the traditional common law rule. Courts should, however, award compound prejudgment interest.
How is prejudgment interest calculated in NY?
CPLR § 5004 sets 9% as the statutory interest rate of pre- and post-judgment interest in New York.
Is prejudgment interest substantive or procedural New York?
The majority view among states is that “prejudgment interest, like the issue of damages, is substantive, and the state whose laws govern the substantive legal questions also governs the question of prejudgment interest.” Id.
How do you calculate prejudgment interest?
To calculate your own pre-judgment interest, count the number of days between the 180th day after you notified your defendant of a pending lawsuit or the date you filed the lawsuit, and multiply the number of days by the appropriate rate.
Is compounding interest legal in New York?
As surprising as it may seem, New York has a judicial rule against the enforcement of agreements to pay interest on interest (compound interest). If a borrower defaults in paying interest on interest, the lender cannot collect the amount that is interest on interest.
Is prejudgment interest simple or compound in California?
Civil Code section 3289 provides guidance and specifies that prejudgment interest on a tort claim is set at seven percent (7 percent) per annum, in simple interest. (Michelson v. Hamada (1994) 29 Cal.
Is prejudgment interest substantive or procedural?
“It is well settled that prejudgment interest is a substantive aspect of a plaintiff‟s claim, rather than a merely procedural mechanism.” In re Exxon Valdez, 484 F. 3d 1098, 1101 (9th Cir. 2007). Thus, federal courts apply state law to a plaintiff‟s claim for prejudgment interest unless a federal law preempts it.
What is prejudgment interest?
The interest that a creditor, usually a plaintiff in the case, is entitled to collect, derived from the amount of a judgment, which compensates the creditor for an injury which occurred before the judgment.
Is court interest simple or compound?
Statutory interest is simple, not compound. Rate of interest is “at such rate as the court thinks fit or as rules of court provide” and may be calculated at different rates for different periods.
Is prejudgment interest simple or compound California?
What is the legal interest rate in New York?
16% per annum
[T]he legal rate of interest in New York, as set forth in Section 14-a of the Banking Law, is 16% per annum. Consequently, the general rule is that, unlicensed nonbank lenders may not charge more than that rate on the small loans within the purview of Article IX.
Does default interest compound?
Default interest (if unpaid) arising on an Unpaid Sum will be compounded with the Unpaid Sum at the end of each Interest Period applicable to that Unpaid Sum.
Is prejudgment interest compounded in Florida?
2nd 239, 240 (Fla. 2d DCA 1993) (simply concluding that prejudgment interest cannot bear postjudgment interest, with citation of cases and reference to Form 1.988(b), Fla. R.
What is pre judgment interest?
What is New York statutory interest rate?
According to the New York Civil Practice Law and Rules (CPLR), the interest rate on a pre- or post-judgment is 9% per annum (year).
Can a court award compound interest?
Claiming interest under the court’s equitable jurisdiction Under its equitable jurisdiction, the court has the ability to award simple or compound interest as ancillary relief to its equitable remedies.
Does NY have usury laws?
In New York, charging interest greater than 16 percent annual, but less than, or equal to 24 percent is civil usury. Interest rates of 25 percent or more is criminal usury. Despite the New York usury laws, lenders frequently provide loans at higher rates, often between 350 and 650 percent.
What is Post judgment interest in New York?
The post-judgment interest rate is the weekly average one-year constant maturity Treasury yield for the calendar week preceding the date of the entry of judgment. Effective December 21, 2000, the rate of interest that may be added to a judgment is subject to the provisions of 28 U.S.C. §1961, 18 U.S.C.
Is Post judgment interest simple or compound in Florida?
Florida law requires that statutory interest be computed as simple interest and not compound interest.