Does New York have prejudgment interest?

In the post-crisis era of near zero interest rates, New York’s 9 percent prejudgment interest rate can actually prove to be a plaintiff’s best investment strategy.

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. This could end up being a significant amount of money and could potentially exceed the amount of the award itself.

Is New York prejudgment interest simple or compound?

New York’s prejudgment interest rate for breach of contract cases is 9% per annum, and accrues on a simple, rather than a compound, basis.

Is prejudgment interest substantive or procedural New York?

substantive
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.

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).

How do I calculate prejudgment interest?

How much is pre statutory interest?

10% per year
Interest accrues on an unpaid judgment amount at the legal rate of 10% per year (7% if the judgment debtor is a state or local government entity) generally from the date of entry of the judgment.

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 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 the statutory interest rate in New York?

What is the maximum interest rate allowed by law in New York?

16% per annum
Usury is defined as the lending of money at an exorbitant interest rate. In New York, the maximum rate of interest on a loan is 16% per annum. If a lender charges more than that, it may be liable for civil usury. Interest that is higher than 25% constitutes criminal usury.