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Prejudgment Interest Reform

STATE

STATUTORY CITATION

PROVISIONS

Alaska

Alaska Stat. § 9.30.070

Establishes the rate at 3 percentage points higher than the Federal Reserve discount rate.

Prejudgment interest may not be awarded for future economic, noneconomic or punitive damages.

Colorado

Colo. Rev. Stat. § 13-21-101

Establishes the rate as two percentage points above the discount rate that a commercial bank pays to the federal reserve bank of Kansas City using a government bond or other eligible paper as security, and shall be rounded to the nearest full percent.

Colo. Rev. Stat. § 13-64-302

Limits prejudgment interest that can be assessed between accrual of action and filing of claim to below the $1 million limit on the total amount recoverable in medical liability claims.

Georgia

Ga. Code Ann. § 7-4-12

Establishes that all judgments in the state shall be limited to the prime rate plus 3%.

Iowa

Iowa Code § 668.13

Establishes a cap on all prejudgment interest equal to the U.S. Treasury constant maturity index plus 2%.

Interest on all damages except future damages accrue from the date action is commenced. Interest on future damages accrue on the date of the entry of judgment.

Louisiana

La. Rev. Stat. Ann. § 9:3500

La. Rev. Stat. Ann. § 13:4202

The effective judicial interest rate for the calendar year following the calculation date shall be three and one-quarter percentage points above the Federal Reserve Board of Governors approved "discount rate."

Maine

14 Me. Rev. Stat. Ann. § 1602-B

In civil actions prejudgment interest is allowed at the one-year United States Treasury bill rate plus 3%. In small claims actions, prejudgment interest is not recoverable unless the rate of interest is based on a contract or note. In all civil and small claims actions involving a contract or note that contains a provision relating to interest, prejudgment interest is allowed at the rate set forth in the contract or note.

Michigan

Mich. Comp. Laws § 600.6013

Prohibits prejudgment interest for future damages - from date of filing to date of judgment. Sets forth a schedule of judgment interest rate for allowable damages depending on when a complaint was filed.

Establishes additional criteria to govern medical malpractice actions when a defendant fails to provide access to medical records and for bona fide settlement offers.

Minnesota

Minn. Stat. § 549.09

The rate of interest is the one year United States Treasury bills constant maturity treasury yield, rounded to the nearest one percent, or four percent, whichever is greater.

Minn. Stat. § 548.48

Governs interest allowable on foreign-money claims and sets forth that it shall be the same rate as that applicable to judgments rendered in the state.

Missouri

Mo. Rev. Stat. § 408.040

Allows prejudgment interest in tort cases when judgment exceeds a settlement offer.

This provision does not limit the rights of claimants in other actions to recover prejudgment interest. Establishes the prejudgment interest rate is the Federal Funds Rate plus five percent.

Nebraska

Neb. Rev. Stat. § 45-103.02

Interest shall accrue on the unpaid balance of unliquidated claims from the date of the plaintiff's first offer of settlement which is exceeded by the judgment until the entry of judgment if certain conditions are met.

Neb. Rev. Stat. § 45-103

For decrees and judgments rendered on and after July 20, 2002, interest shall be fixed at a rate equal to two percentage points above the United States Treasury bills rate in effect on the date of entry of the judgment.

New Hampshire

N.H. Rev. Stat. Ann. § 336:1

Sets prejudgment interest rate at the U.S. Treasury Bill rate plus 2%.

Oklahoma

Okla. Stat. tit. 12, § 727

Sets prejudgment interest at the U.S. Treasury Bill rate plus 4%.

Interest for punitive damages begins to accrue from the date judgment is rendered or filed.

Rhode Island

R.I. Gen. Laws § 9-21-10

Sets the interest to be added to civil damages at 12% per year from the date the cause of action accrued.

South Carolina

S.C. Code Ann. § 34-31-20

Sets legal interest rates at the prime rate plus four percent.

Texas

Tex. Fin. Code Ann. §§ 304.003, 304.103

The interest rate is: (1) the prime rate of the Federal Reserve System on the date of computation; (2) five percent a year if the prime rate as published by the Federal Reserve System described by Subdivision (1) is less than five percent; or (3) 15 percent a year if the prime rate of the Federal Reserve System described by Subdivision (1) is more than 15 percent.

Tex. Fin. Code Ann. § 304.1045

Prohibits prejudgment interest on future damages.

Washington

Wash. Rev. Code § 4.56.110

Establishes interest rate at 2% above the U.S. Treasury Bill rate.