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Civil litigation

interest rates on judgments

Interest rates are compensation for the time-value of money, and are calculated on judgments (the amount of money one party to a lawsuit is ordered to pay another party) based on the applicable state or federal statutes. There are often different interest rates set by law for prejudgment interest (the interest on the amount owed before the judgment) and post-judgment interest (the interest on the amount owed after the judgment). The calculation of prejudgment and post-judgment interest rates vary from state to state (and in federal court), and require a careful analysis of the statutes.

In Massachusetts, interest rates on judgments are governed by state statutes. Prejudgment interest is typically calculated from the date of the breach or demand. The statutory rate for contracts under seal is 12% per annum, and for tort actions, it is also 12% per annum from the date of the filing of the action, as per M.G.L. c. 231, § 6B and § 6C. Post-judgment interest accrues from the date of the entry of the judgment and is set at the same rate as the prejudgment interest for both contract and tort actions, which is 12% per annum, according to M.G.L. c. 235, § 8. These rates are subject to change by legislative action, and different rates may apply under specific circumstances or in cases involving the government. It is important to consult the current statutes or an attorney to ensure accurate calculation of interest on judgments in Massachusetts.

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Civil litigation

interest rates on judgments

As a LegalFix Member You Will Be an Important Client of Local Law Firms

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Massachusetts State Code

Massachusetts State Code

Civil litigation

interest rates on judgments

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