PREJUDGMENT INTEREST REFORM

Reforms Upheld as Constitutional (after 1983)

The state courts have not upheld any of the states’ prejudgment interest reforms facing constitutional challenges.

Reforms Struck Down as Unconstitutional (after 1983)

The state courts have not struck down any of the states’ prejudgment interest reforms facing constitutional challenges.

Reforms Unchallenged on Constitutional Grounds

ALASKA

Prejudgment Interest Reform: HB 58 (1997).  Sets prejudgment interest rate at the Twelfth Federal Reserve District’s discount rate plus 3%.  Prohibits the assessment of prejudgment interest for future damages and punitive damages.

COLORADO

Prejudgment Interest Reform: SB 165 (1995).  Limits the amount of prejudgment interest that can be assessed between accrual of the action and filing of the claim to below the $1,000,000 limit on the total amount recoverable in medical liability claims.

GEORGIA

Prejudgment Interest Reform: HB 792 (2003).  Sets prejudgment interest rates at the Federal Reserve’s prime interest rate plus 3%.

IOWA

Prejudgment Interest Rate Reform: HF 693 (1997); Amended Iowa Code § 535.3.  .  Sets the prejudgment interest rates at the U.S. Treasury Rate plus 2%.

Prejudgment Interest Rate Reform: SF 482 (1987).  Prohibits the assessment of prejudgment interest for future damages.  (Other interest accrues from the date of commencement of the actions at a rate based on the U.S. Treasury Bill.)

LOUISIANA

Prejudgment Interest Rate Reform: (1997).  Sets prejudgment interest rates at the average Treasury Bill rate for 52 weeks plus 2%.  Provided varying rates of prejudgment interest for actions pending or filed during the last 10 years.

Prejudgment Interest Rate Reform: HB 1690 (1987).  Sets prejudgment interest rates at the prime rate plus 1% with a floor of 7% and a cap of 14%.

MAINE

Prejudgment Interest Rate Reform: LD 2520 (1988).  Sets prejudgment interest rates and postjudgment interest rates at the U.S. Treasury Bill rate.

MICHIGAN

Prejudgment Interest Reform: HB 5154 (1986).  Prohibits the assessment of prejudgment interest on awards for future damages.

MINNESOTA

Prejudgment Interest Reform: SB 2078 (1986).  Prohibits the assessment of prejudgment interest on awards for future damages.

MISSOURI

Prejudgment Interest Reform: H.B. 393 (2005); § 355.176 R.S.Mo. Specifies that prejudgment interest is to be calculated at an interest rate equal to the Federal Funds Rate plus three percent.

Prejudgment Interest Reform: HB 700 (1987).  Permits the assessment of prejudgment interest only in cases where the judgment exceeds a settlement offer.

NEBRASKA

Prejudgment Interest Reform: LB 298  (1986).  Reduces the rate of interest to 1% above the rate on U.S. Treasury Bill.

NEW HAMPSHIRE

Prejudgment Interest Reform: HB 140 (2001); Amended RSA 336:1.  Sets the prejudgment interest rate at the 26-week discount U.S. Treasury Bill rate.

OKLAHOMA

Prejudgment Interest Reforms: HB 1603 (2009).  Provides that prejudgment interest does not begin to accrue until two years after the beginning of a lawsuit; reduced the interest rate charged.

Prejudgment and Postjudgment Interest Reform: HB 2661 (2004). Sets prejudgment and postjudgment interest rate at the prime rate plus 2 percent (effective January 1, 2005).

Prejudgment Interest Reform: SB 629 (2003).  Sets the prejudgment interest rate in medical malpractice cases to the average U.S. Treasury Rate of the preceding calendar year.

Prejudgment Interest Reform: SB 488 (1986).  Prohibits the assessment of prejudgment interest on punitive damages awards.  Sets the prejudgment interest rate at 4% above the rate on the U.S. Treasury Bill.

RHODE ISLAND

Prejudgment Interest Rate Reform: HB 5885 (1987).  Sets the prejudgment interest rate at the U.S. Treasury Bill rate.  Provides that interest accrues from the date the lawsuit is filed.

SOUTH CAROLINA

Prejudgment Interest: H. 3403 (2000).  Sets prejudgment interest rates at the prime rate plus one percent.

TEXAS

Prejudgment Interest Reform: HB 4 (2003).  Sets the prejudgment interest rate to the New York Federal Reserve prime rate, with a floor of 5% and a ceiling of 15%.

Prejudgment Interest Reform: SB 6 (1987).  Limits the period during which prejudgment interest may accrue if the defendant has made an offer to settle the lawsuit.

Prejudgment Interest Reform: HB 971 (1995).  Allows prejudgment interest only for damages that occurred before judgment.