united states and Canada 2010 - AAMGA

Post Judgment Interest
Prejudgment Interest
Punitive Damages

United States and Canada 2010

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Introduction

This booklet summarizes Post Judgment Interest, Prejudgment Interest,
and Punitive Damages as applied by the various states, provinces and
territories of the United States and Canada.

Claims technicians need to consider these elements to properly evaluate
and reserve a claim.

When precise and up-to-date information is required, you should check
with local counsel as these are constantly changing fields.

Since these reviews provide only a brief summary, a complete reading
and analysis of the cases – coupled with specific legal opinions of the
applicable jurisdictional laws – must be completed before significant
decisions are made. In providing this information, the authors do not intend
to provide legal advice.

Edited by Lourdes M. Francisco, Vice President,
Munich Reinsurance America, Inc. Claims Division

Special thanks to: Robert J. Bates, Jr., Ellen J. Zabinski, and
Sarah Eversman of Bates & Carey LLP, Chicago, Illinois.

MUNICH RE Post Judgment Interest, Prejudgment Interest, Punitive Damages 2010 1

Post Judgment Interest

State Interest Allowed Date Accrues Rate of Interest
Alabama Yes Date of Judgment
Alaska Yes Date of Judgment 12%, or rate provided in the contract.

Arizona Yes Date of Judgment Five percentage points above the 12th Federal Reserve
District discount rate in effect on date contract made
or, if one is specified, interest at the rate specified in
the contract, not exceeding the legal rate of 10.5%.

10%, or rate provided in the contract.

Arkansas Yes Date of Judgment Medical malpractice claims – prevailing party receives
interest at rate equal to three percentage points above
the federal post judgment interest rate (28 U.S.C. §
1961) in effect on date judgment entered, continuing
to be adjusted on 6/30 and 12/31 each year, but rate
cannot exceed 9%. Interest shall accrue at each
adjusted rate until next adjustment, and adjusted
interest rate shall not apply to any preceding six-month
period.

Judgment entered by circuit court: Rate provided in
the contract or 10% per annum, whichever is greater.
On any other judgment, 10% per annum, but not more
than the maximum rate permitted by the Arkansas
Constitution, Article 19, Section 13, as amended (5%
per annum above the Federal Discount Rate at the time
of the contract).

California Yes Date of Judgment Judgment entered by district court: Rate provided in
Date of Judgment contract or 10% per annum, whichever is greater, and
Colorado Yes on any other judgment at 10%.

10% unless legislature reduces rate to less than 10%, or
rate provided in the contract. Post judgment interest
against a public entity is assessed at a rate of 7% per
annum.

Contract – 8% or rate provided in the contract, but
parties may stipulate to rates not greater than 45%,
compounded annually.

Tort – 9% compounded annually, unless judgment
debtor appeals, then rate to be two percentage points
above discount rate certified by Secretary of State on
1/1, compounded annually.

Connecticut Yes Negligence cases arising 10%. For debt arising out of services provided at
after 5/27/97: 20 days after hospital, court has discretion to award post judgment
judgment or 90 days after interest at rate no higher than 5% per year.
verdict, whichever is earlier.

Delaware Yes All other cases: Date of 5% over Federal Reserve discount rate, or rate provided
Judgment in the contract.

Date of Judgment

2 MUNICH RE Post Judgment Interest, Prejudgment Interest, Punitive Damages 2010

Post Judgment Interest

State Interest Allowed Date Accrues Rate of Interest
Yes Date of Judgment
District of 6%, or rate provided in the contract. Interest at rate
Columbia Date of Judgment not exceeding 4% is allowed on judgments against
Date of Judgment District of Columbia. Where judgment is not against
Florida Yes Date of Judgment District of Columbia or where rate of interest is not
fixed by contract, interest is 70% of rate of interest set
Georgia Yes by Secretary of Treasury pursuant to § 6621 of Internal
Revenue Code of 1986 for underpayment of tax to
Hawaii Yes Internal Revenue Service rounded to the nearest full
percent or if exactly .25 of 1 %, increased to the next
highest full percent, provided that court may lower such
rate of interest for good cause shown or upon showing
that judgment debtor in good faith is unable to pay
judgment.

Amount stated in contract or, for judgments and
decrees entered on or after 1/1/95, interest at rate
equal to averaged federal discount rate as established
by the Chief Financial Officer of the State of Florida on
12/1 of each year beginning 12/1/94, plus 500 basis
points, unless rate is established in written contract or
obligation. For time periods before 1/1/95 for which
interest is due, use previous statutory rate.

Principal amount of judgment bears interest at rate of
prime rate as published by the Board of Governors of
Federal Reserve System, as published in Statistical
Release H.15 or any publication that may supersede it,
on day judgment is entered, plus 3%, or rate in written
contract or obligation.

10% per year, 4% if judgment against state.

Idaho Yes If judgment against state, Interest runs at 5% plus base rate of weekly average
Illinois Yes date of judgment up to, yield on U.S. Treasury Securities as determined by
but not exceeding, 30 days Idaho State Treasurer on 7/1 for the succeeding year.
Indiana Yes after the approval of any
appropriation act providing 9%. By tender of payment of judgment, costs
for payment of judgment. and accrued interest to date of tender, judgment
Date of Judgment debtor can stop further accrual of interest on same,
notwithstanding prosecution of appeal or other action
Date of Judgment to reverse, modify or vacate judgment. 6% if judgment
debtor is unit of local government, school district,
Date of Verdict, or court community college district, or any other governmental
finding in bench trial. entity.

8%, or rate in contract (provided rate in the contract
does not exceed 8%).

MUNICH RE Post Judgment Interest, Prejudgment Interest, Punitive Damages 2010 3

Post Judgment Interest

State Interest Allowed Date Accrues Rate of Interest
Iowa Yes
Date of Judgment Contract and Tort (not under Comparative Fault Act) –
(including future damages). 5% or rate specified in contract on which judgment is
based, not to exceed maximum variable rate of 2% over
rate on U.S. Government notes and bonds, calculated
monthly.

Kansas Yes Date of Judgment Tort Comparative Fault Act – Rate of interest shall be
calculated as of the date of judgment at a rate equal
to the one-year treasury constant maturity index
published by federal reserve in H.15 Report settled
immediately prior to date of judgment, plus 2%.

Contract – Rate provided in the contract not exceeding
maximum rate.

Kentucky Yes Date of Judgment All other actions – until 7/1/80, judgments (including
Louisiana Yes Ex delicto – legal rates judgments against a state or political subdivision)
attach from date of judicial bear interest at 8%. Judgments rendered or unpaid
Maine Yes demand. thereafter bear interest at 12% until 7/1/82. Judgments
Ex contracto – from date rendered or unpaid thereafter and before 7/1/86 bear
Maryland Yes due. interest at 15%. After 7/1/86, post judgment rate is 4%
Massachusetts Yes above federal discount rate as of 7/1 preceding date of
Date of Judgment judgment.

Date of Judgment 12% compounded annually or rate specified in contract.
Date of Judgment If unliquidated damages, court’s discretion to set rate at
less than 12%.

Prior to 9/12/80 – 7%; 9/12/80 – 9/11/81 – 10%;
9/12/81 – 1/1/88 – 12%; 1988 – 9.75%; 1989 and
1990 – 11.5%; 1991 – 11%; 1992 – 9%; 1993 and 1994
– 7%; 1995 – 8.75%; 1996 – 9.75%; 1/1/97 – 8/1/97 –
9.25%; 8/2/97 – 12/31/97 – 7.9%; 1998 – 7.6%; 1999
– 6.73%; 2000 – 7.285%; 2001 – 8.24%; 2002 – 5.75%;
2003 – 4.5%; 2004 – 5.25%; 2005 – 6%; 2006 – 8%;
2007 – 9.5%; 2008 – 8.5%, 2009 – 5.5% and 2010
– 3.75%. On or after 1/1/02, rates shall be equal to
rates published annually by commissioner of financial
institution. Effective judicial interest rate equals 3.25%
above discount rate published 10/1 in the Wall Street
Journal.

For judgments entered on or after 7/1/03, interest
equals the rate specified in the contract or weekly
average one-year constant maturity treasury yield, as
published by the Board of Governors of the Federal
Reserve System, for the last full week of the calendar
year immediately prior to the year from which post-
judgment interest begins to accrue, plus 6%.

10%, or rate provided in the contract.

12%, or rate provided in the contract. Not permitted
against the Commonwealth in tort cases.

4 MUNICH RE Post Judgment Interest, Prejudgment Interest, Punitive Damages 2010

Post Judgment Interest

State Interest Allowed Date Accrues Rate of Interest
Michigan Yes Date of Judgment
For complaints filed after 7/1/02: Contract – rate
specified in contract if legal at the time instrument
executed; if variable rate, interest fixed at rate in effect
under instrument at time complaint filed, not exceeding
13% per year compounded annually.

For complaints filed on and after 1/1/87 but before
7/1/02: Contract – 12% compounded annually or rate
specified in contract if higher but not exceeding 13%,
compounded annually after date of judgment.

For complaints filed on and after 1/1/87: Tort – rate
certified by state treasurer semi‑annually equal to 1%
plus average interest rate on five-year U.S. Treasury
Notes.

For The Six Months The Average Interest
Preceding Rate Was
7/1/09 2.101%
1/1/09 2.695%
7/1/08 3.063%
1/1/08 4.033%
7/1/07 4.741%
1/1/07 4.701%
7/1/06 4.815%
1/1/06 4.221%
7/1/05 3.845%
1/1/05 3.529%

Tort – Offer of Judgment – rate is increased 2% from
date offer rejected by defendant to satisfaction of
judgment if offer is filed with the court. If defendant
makes an offer which is rejected by plaintiff and
a judgment is subsequently rendered against the
defendant, interest is not allowed beyond the date
the offer is filed with the court. An offer is deemed
rejected if not accepted within 21 days after the offer is
made.

For claims filed on or after 10/1/86, interest shall not
be allowed on “future damages” (defined as personal
injury damages accruing after the amount of damages
are determined) from date of complaint to date of
judgment, unless bona fide settlement offer in tort
cause of action not made or filed.

MUNICH RE Post Judgment Interest, Prejudgment Interest, Punitive Damages 2010 5

Post Judgment Interest

State Interest Allowed Date Accrues Rate of Interest
Minnesota Yes Date of Judgment
Interest rate for each year determined before 12/20
of prior year by State Court Administrator, based on
secondary market yield for most recent month on
secondary market yield on one-year U.S. Treasury Bills
rounded to nearest 1% or 4%, whichever is greater.
Floating rate applies to balance of judgments remaining
unpaid after 12/31/80. Interest ran at judgment rate
of 7% in 1990 and 1991, 5% in 1992, 4% in 1993, 3%
in 1994, 6% in 1995 and 5% in 1996, 1997, and 1998,
4% in 1999, 5% in 2000, 6% in 2001, 2% in 2002, 4%
in 2003, 4% in 2004, 4% in 2005, 4% in 2006, 5% in
2007, and 4% in 2008 and 2009.

Mississippi Yes Date of Judgment For judgments exceedign $50,000 finally entered on
Missouri Yes Date of Judgment or after 8/1/09, the interest rate shall be 10% per year
until paid.

Judgments and decrees founded on contract or sale
bear interest at contract rate or, if no rate provided in
the contract, 8%. Other judgments set by court.

Contracts – 9%, or rate provided in the contract, if
higher than 9%.

Montana Yes Date of Judgment Torts – Intended Federal Funds Rate, established by the
Nebraska Yes Date of Judgment Federal Reserve, plus 5%, until full satisfaction is made.
Judgment shall state applicable interest rate, which
shall not vary once entered.

10%, or rate specified in contract. Interest payable on
judgments recovered in the courts of Montana and on
the costs incurred to obtain or enforce a judgment.

On actions filed before 7/20/02: 1% above bond
equivalent yield, as published by U.S. Secretary of the
Treasury of average accepted auction price for last
auction of Treasury Bills in effect on date of judgment;
rate specified in contract, or rate specified by statute
for a particular action.

Nevada Yes From service of Summons On actions filed after 7/20/02: 2 percentage points
and above the bond investment yield, as published by the
New Hampshire Yes Complaint (until satisfied). U.S. Secretary of the Treasury of the average accepted
auction price for first auction of each annual quarter
Date of Judgment of the 26-week U.S. Treasury bills in effect on date of
judgment; rate specified in contract or rate specified by
statute for a particular action.

Prime rate at the largest bank in Nevada as ascertained
by the Commissioner of Financial Institutions on 1/1
or 7/1 immediately preceding the date of judgment,
plus 2%, or rate provided in written contract. Future
damages draw interest only from entry of judgment.

Simple interest rate determined on or before 12/1 by
State Treasurer based on prevailing discount rate on
26-week U.S. Treasury Bills, plus 2 percentage points,
effective first day of following year.

6 MUNICH RE Post Judgment Interest, Prejudgment Interest, Punitive Damages 2010

Post Judgment Interest

State Interest Allowed Date Accrues Rate of Interest
New Jersey Yes Date of Judgment
For the period 1/2/86 and for each calendar year
thereafter, the annual rate of interest shall equal the
average rate of return for the corresponding preceding
fiscal year terminating on 6/30 of the State of N.J.
Cash Management Fund as reported by the Division of
Investment in the Department of Treasury.

After 9/1/96: for judgments exceeding $10,000, the
rate of post judgment interest as set forth above, plus
an additional 2%.

New Mexico Yes Date of Judgment The annual rate of interest was 8.5% in 1991, 7.5%
in 1992, 5.5% in 1993, 3.5% in 1994, 5.5% in 1996,
1997, 1998, and 1999, 5% in 2000, 5.5% in 2001, 6%
in 2002, 3% in 2003, 2% in 2004, 1% in 2005, 2% in
2006, 4% in 2007, 5.5% in 2008, 4.0% for 2009 and
1.5% in 2010.

Contract – 8.75%, or rate provided in the contract.

Tort – Bad faith or intentional and willful acts – 15%.

Other Acts – discretionary with the court not exceeding
10%.

State and its political subdivisions are exempt unless
law provides otherwise.

New York Yes Date of verdict or the date Money judgments bear interest at legal rate of 9%,
of the entry of the final unless otherwise prescribed by statute. The court may
judgment, whichever occurs set a lower rate in cases where a judgment is entered
first. against the State or a municipality.

North Carolina Yes Date of Judgment 8% or rate specified in contract, if parties agreed rate
applies after judgment.

North Dakota Yes Date of Judgment 12%, or rate provided in the contract. Beginning
January 1, 2006, the interest is payable at a rate equal
to the prime rate published in the Wall Street Journal on
the first Monday in December of each year, plus three
percentage points rounded up to the next one-half
percentage point. Interest on all judgments entered
in the courts of North Dakota before January 1, 2006
must remain at the rate per annum which was legally
prescribed at the time the judgments were entered.

Ohio Yes Date of Judgment Interest rate calculated at federal short-term rate, such
that on 10/15, tax commissioner determines federal
short-term rates, plus 3% (except for judgment on
bonds, bills, notes, or other instruments in writing
containing stipulations in writing for interest at some
other lawful rate), or rate provided in the contract.
The rate for 2009 is 5%. Interest accrues from date of
cause of action if lack of good faith effort to settle by
party required to pay.

MUNICH RE Post Judgment Interest, Prejudgment Interest, Punitive Damages 2010 7

Post Judgment Interest

State Interest Allowed Date Accrues Rate of Interest
Oklahoma Yes
Date of Judgment or the On judgments rendered between 1/1/00 and 1/1/05,
date the judgment is filed judgments bear interest at annual rate equal to average
with the Clerk of the Court, U.S. Treasury Bill rate of preceding calendar year as
whichever is earlier. certified by State Treasurer each January plus 4% or
rate provided in the contract. Judgments against state
and political subdivisions shall bear interest at same
rate but not to exceed 10% per year.

For all judgments rendered on or after 1/1/05,
judgments bear interest at an annual rate equal to
the prime rate (3.25%), as listed in the first edition of
the Wall Street Journal published for each calendar
year and as certified to the Administrative Director of
the Courts by the State Treasurer on the first regular
business day following publication in January of each
year, plus 2%. The interest rate in 2009 is therefore
5.25%.

Oregon Yes Date of Judgment, unless 9%, or rate provided in the contract,
some other date is specified if higher than 9%.
in judgment.
For judgments rendered in an action for injuries
resulting from the professional negligence of a person
licensed by the Oregon Medical Board or the Oregon
State Board of Nursing, the rate of interest on that
judgment is the lesser of 5% per annum or 3% in excess
of the discount rate in effect at the Federal Reserve
Bank in the Federal Reserve district where the injuries
occurred.

Pennsylvania Yes Date of verdict; if no verdict, 6%, or rate provided in the contract.
Puerto Rico Yes date of judgment.

Date of Judgment Rate fixed by Finance Board of Office of Commissioner
of Financial Institutions in effect when judgment
pronounced.

Rhode Island Yes Civil Action – Date of 12%, unless different rate expressly stipulated and
accrual. accrues on both principal of judgment and prejudgment
interest.
Medical malpractice action
after 1/1/87 – earlier of Insurer liable for all interest on judgment, even if in
written notice or filing excess of policy limits, if it rejects written offer equal
action. to or less than policy limits at time action accrues. A
written offer will be presumed rejected if insurer does
not respond within 30 days.

8 MUNICH RE Post Judgment Interest, Prejudgment Interest, Punitive Damages 2010

Post Judgment Interest

State Interest Allowed Date Accrues Rate of Interest
South Carolina Yes Date of Judgment
A money decree or judgment of this court enrolled
or entered: For all judgments entered on or after
7/1/05, the legal rate of interest is equal to the prime
rate as listed in the first edition of the Wall Street
Journal published for each calendar year for which the
damages are awarded, plus four percentage points,
compounded annually. The South Carolina Supreme
Court shall issue an order by 1/15 of each year
confirming the annual prime rate. For all judgments
entered between 7/1/05 and 1/14/06, the legal rate of
interest shall be the first prime rate as published in the
first edition of the Wall Street Journal after 1/1/05, plus
four percentage points. The rate in 2009 is 7.25%.

South Dakota Yes Date of Verdict 8.75% for cases where sum of money shall be
Tennessee Yes Date of Verdict ascertained and draw interest according to law.

10%.

10%, rate provided by statute or rate provided in the
contract, if higher than 10%.

Texas Yes Date of Judgment Tort judgments against government – 6% on unpaid
balance if paid in installments.

Contract – rate specified in contract or 18%, whichever
is less.

Other actions – prime rate published by Board of
Governors of the Federal Reserve System; at least 5%
(if prime rate below 5%) and not more than 15% (if
prime rate over 15%), compounded annually.

Utah Yes Date of Judgment Rate equals federal post judgment interest rate in 28
U.S.C. § 1961 as of 1/1 of each year, plus 2%, or rate
provided in the contract.

Vermont Yes Date of Judgment 12%.
Virgin Islands Yes
Date of Judgment 4%. No pre-judgment interest assessed against
Virginia Yes government of Virgin Islands.

Date of Verdict, Judgment or 6%, or rate provided in the contract, whichever is

Decree higher. The rate of interest for a judgment shall be

the judgment rate of interest in effect at the time of

entry of the judgment and shall not be affected by any

subsequent changes to the rate of interest.

Washington Yes Date of Judgment Contracts – Rate specified in the contract, provided
that said interest rate is set forth in judgment.

Tortious conduct – 2% points above equivalent coupon
issue yield, as published by Board of Governors of
Federal Reserve Systems, of average bill rate for
26-week treasury bills determined at first bill market
auction conducted during calendar month immediately
preceding date of entry.

MUNICH RE Post Judgment Interest, Prejudgment Interest, Punitive Damages 2010 9

Post Judgment Interest

State Interest Allowed Date Accrues Rate of Interest
West Virginia Yes
Date of Verdict, Judgment or 5%. After 6/7/06, the rate of interest on judgments

Decree and decrees for the payment of money, including

prejudgment interest, is three percentage points

above the Fifth Federal Reserve District secondary

discount rate in effect on 1/2 of the year judgment or

decree is entered, not to exceed 11% or be less than

7%. Once the rate of interest is established by a

judgment or decree, that rate shall remain constant for

that particular judgment or decree, notwithstanding

changes in the rate in subsequent years.

Wisconsin Yes Date of Verdict 12%.
Wyoming Yes
Date of Judgment 10%, or rate provided in the contract.

10 MUNICH RE Post Judgment Interest, Prejudgment Interest, Punitive Damages 2010

Prejudgment Interest

State Type of Action Payable Date Accrues Rate of Interest
Alabama
Contract and Tort – Contract – Date of Breach. Contract – 6% or rate in written contract, not to
Amounts Liquidated or exceed 8%.
Ascertainable, Accident Tort – Date cause of action
& Health, and First Party accrues. A&H and First Party – 1.5% per month.
Claims.
A&H and First Party Claims
– 45 days after written claim
and 30 days after electronic
claim presented.

Alaska All Contract – Date of Accrual of 3% above the 12th Federal Reserve District discount
cause of action. rate in effect on 1/2 of the year in which the
judgment is entered except when a judgment on a
Tort – Earlier of date process contract bears interest at the rate specified in the
is served on defendant or contract, if one is specified, not exceeding the legal
date defendant receives rate of 10.5%.
written notification that
injury occurred and claim No pre-judgment interest for future economic, future
may be brought unless non-economic, or punitive damages.
parties agree otherwise.

Arizona All Liquidated Damages – Liquidated Damages – 10%, or rate provided in the
Date due. contract.
Unliquidated Claims – If offer of judgment made
Unliquidated Claims – before trial was not accepted and judgment
Date of Offer of Judgment finally obtained was equal to or more favorable
(when applicable only). to the offeror than the offer, offeree is liable for
prejudgment interest on unliquidated claim from
date of the offer.

Arkansas Amounts ascertainable Date ascertainable. 6%, or rate provided in the contract.
at time of loss.

California All Contract – Date due or Contract – 10% (for contracts entered into after
ascertainable. 1/1/86), or rate provided in the contract.

Contract – unliquidated Other actions – 7%, except for an offer of judgment in
damages – court’s discretion personal injury actions (10%).
but no earlier than date
action filed.

Other actions – jury
discretion.

Colorado Contract, Tort Offer of Judgment in Contract – 8%, compounded annually, or rate in
personal injury actions – written contract.
date of plaintiff’s first offer
exceeded by judgment. Tort – 9% compounded annually. Medical
malpractice – Prejudgment interest accruing
Contract – Date due. between date action accrues and date of filing of
action deemed part of damages and included in
Tort – Date action accrues. statutory limitation of $250,000 on non-economic
damages and limitation of $1 million on total
damages per patient.

MUNICH RE Post Judgment Interest, Prejudgment Interest, Punitive Damages 2010 11

Prejudgment Interest

State Type of Action Payable Date Accrues Rate of Interest
Connecticut Civil Action
Civil Action – Discretionary Civil actions – 10%, except for debt arising out of

from date money due or services provided at hospital; prejudgment interest

wrongfully withheld. shall be no more than 5% per year, the awarding of

interest in such cases is discretionary.

Offer of Compromise – If

made 18 months after filing Offer of Compromise – 8% if plaintiff recovers

of action, interest is payable amount equal to or greater than offer.

from date action filed. If later

than 18 months, payable from

date offer of judgment was

filed.

Delaware Contract, Property Contract – date payment due. 5% over Federal Reserve discount rate, or rate
Damage, Personal Injury, specified in contract.
Death.
Tort – date of injury, provided
that prior to trial plaintiff
submitted written settlement
demand valid for at least
30 days in an amount less
than the amount entered by
judgment.

Other Civil Actions – date
action accrues.

District of Contract Date due. 6%, or rate provided in the contract.
Columbia
Liquidated Damages – Actions against the District of Columbia: not to
exceed 4%.
where interest payable by

contract, law or usage.

Unliquidated Damage –

accretionary as to date of

accrual only.

Florida Contract or Liquidated Date due or date of breach. Rate set by Chief Financial Officer of the State
Damages. of Florida on 12/1 of each year by averaging the
discount rate of the Federal Reserve Bank of New
York for the preceding year and then adding 500
basis points, beginning 1/1/95, or rate set in written
contract. For amounts accruing before 1/1/95,
previous statutory rate of 12% or rate set in contract
is applicable.

Georgia Contract – Liquidated Contract – Date of For all actions filed on or after 7/1/03: Prime rate, as
Damages. breach (discretionary if published by the Board of Governors of the Federal
Tort – Liquidated or unliquidated). Reserve System, plus 3%, or rate provided in written
Unliquidated Damages. contract. For actions filed prior to 7/1/03, contract
Liquidated Damages – Date actions incur 7% rate of interest, or rate provided in
of Demand. contract, and tort actions incur 12%.

Tort – Unliquidated Damages
30 days after written
demand if judgment equals
or exceeds demand.

Hawaii All Judicial discretion, but 10%, or rate provided in the contract (not to exceed

earliest is date of injury (tort) 10%). State is not liable for prejudgment interest for

or date of breach (contract). torts of its employees.

12 MUNICH RE Post Judgment Interest, Prejudgment Interest, Punitive Damages 2010

Prejudgment Interest

State Type of Action Payable Date Accrues Rate of Interest
Idaho Contract – Liquidated
Damages. Date due or date 12%, or rate in written contract.
ascertainable.
Tort, property damage, Tort, property damage, personal injury or wrongful
personal injury or Tort, property damage, death – 5%, plus the base rate in effect at the time
wrongful death. personal injury, or wrongful the offer of settlement was served. Base rate is
death – if claimant serves weekly average yield on U.S. Treasury Securities as
written offer of settlement, determined by Idaho State Treasurer on 7/1 for the
and offer is not accepted and succeeding year.
a final judgment is reached
that is equal or greater than
offer of settlement, interest
will accrue from the date
the offer of settlement was
served.

Illinois Contract – Liquidated Date due. 5%, or rate provided in the contract.
Damages.

Indiana Contract – Ascertainable Contract – Date due or date Contract – 8%, or rate provided in the contract.
Amounts ascertainable.
Tort. Tort – Court may award interest at an amount
All Actions – Interest begins between 6% and 10%. No prejudgment interest as
to accrue on latest of: 15 part of punitive damages judgment. No prejudgment
months after cause of action interest against state or political subdivision.
accrued, six months if not
contract or tort; 180 days
after medical review panel
formed to review medical
malpractice claims. Period
during which prejudgment
interest accrues not to
exceed 48 months.

Iowa All Contract – Liquidated Contract and Tort not under Comparative Fault Act
Damages – Date due. – 10%, or rate specified in contract not to exceed
maximum variable rate of 2% over rate on U.S.
Unliquidated Damages – Government notes and bonds, calculated monthly.
Date action commenced.
Tort – Comparative Fault Act – Rate of interest shall
Tort – Date action be calculated as of the date of judgment at rate equal
commenced. to the one-year treasury constant maturity index
published by federal reserve in H.15 Report settled
immediately prior to date of judgment, plus 2%.

There is no prejudgment interest for future damages
or punitive damages.

State not liable for interest prior to judgment.

Kansas Contract – Date due and ascertainable. 10%, or rate provided in the contract. Not permitted
Liquidated Damages. against governmental entity.
Unliquidated – court’s
discretion.

MUNICH RE Post Judgment Interest, Prejudgment Interest, Punitive Damages 2010 13

Prejudgment Interest

State Type of Action Payable Date Accrues Rate of Interest
Kentucky Date due.
Contract – Liquidated 8%, or rate in written contract per certain statutory
Damages – as a matter specifications.
of right.

Unliquidated – at the
court’s discretion.

Louisiana All Contract – Date due. After 1/1/98: 1998 – 7.6%, 1999 – 6.73%, 2000 –
7.285%, 2001 – 8.24%, 2002 – 5.75%, 2003 – 4.5%
Tort – Date of judicial per annum,
demand. 2004 – 5.25%, 2005 – 6%, 2006 – 8%, 2007 – 9.5%,
2008 – 8.5%, 2009 – 5.5% and 2010 – 3.75%.
After 1/1/02, rate equal to rate published annually
by commissioner of financial institution. Effective
judicial interest rate equals 3.25% above discount
rate published 10/1 in the Wall Street Journal.

Maine All Date of notice of claim, under Prior to 7/1/03: Actions under $30,000 – 8%.

oath, served on defendant or Actions over $30,000, the interest rate is one–year

date on which complaint filed U.S. Treasury Bill rate, plus 1%, or rate provided in

if no notice is served. the contract.

After 7/1/03: one-year U.S. Treasury bill rate (weekly
average one-year constant Maturity Treasury yield,
as published by Board of Governors of the Federal
Reserve System for last full week of calendar year
prior to the year when prejudgment interest accrues),
plus 3%. Small claims action – not recoverable
unless rate of interest based on contract/note, then
as set forth in contract or note. May not be added to
judgment amount in determining sum upon which
post judgment interest accrues.

Maryland Contract, Contract – Date due. Contract – 6%, or rate provided in the contract, if
higher than 6%.
Auto B.I. – if unnecessary
Auto B.I. – rate determined by the court, but in no
delay of trial by Auto B.I. – Date of action. event at a rate exceeding 10%.

defendants.

Not permitted against the state.

Massachusetts Contract, Tort Contract – Date of breach 12%, or rate provided in the contract.
or demand if established,
otherwise date of action. Before 9/17/04: If action against Commonwealth
and no rate specified in contract, then rate equals
Tort – Date of coupon yield equivalent of last average auction price
commencement of action. of 52-week U.S. Treasury Bills not to exceed 10%.

After 9/17/04: Interest required to be paid by
Commonwealth shall be calculated at a weekly
average one-year constant maturity Treasury yield
as published by Board of Governors of the Federal
Reserve System for the calendar week preceding the
date of judgment, not to exceed 10%.

14 MUNICH RE Post Judgment Interest, Prejudgment Interest, Punitive Damages 2010

Prejudgment Interest

State Type of Action Payable Date Accrues Rate of Interest
Michigan All Contract – Date of action. See rates of interest under Post Judgment section.

Tort – Date of action. If offer Note: Shared pro rata by Primary and Excess
of judgment by defendant carriers.
is not less than 90% of
the judgment to plaintiff,
interest ceases as of date
offer filed with the court.

Minnesota Contract, Contract – Date due. Contract – Rate specified.
All pecuniary damages.

Pecuniary damages – Interest Pecuniary damages – Interest is based on secondary

accrues from the earlier market yield of one-year U.S. Treasury Bills.

of the date the action is

commenced or written No prejudgment interest is allowed on the part of

notice of claim or demand the judgment representing future damages unless

for arbitration, if action is written settlement offer. If prevailing party’s written

commenced within two years settlement offer is closer than other party’s to

from date of the demand or judgment, then interest accrues from date of claim,

notice of claim. demand, or commencement of action and interest

on special damages from date incurred. However,

to take advantage of this rule, settlement offers

must be allocated between past damages and future

damages in the same proportion as that determined

by the trier of fact. If non-prevailing party’s offer is

closer to judgment, then interest is calculated on the

lesser of the judgment or offer.

Mississippi Liquidated Damages or Contract – Date of breach. Contract – Rate provided in the contract, or 8%.
bad faith denial of claim. Other actions – Rate set by judge.
Other actions – Determined
by judge but not prior to
filing of complaint.

Missouri Contract, Tort Contract – date due or date Contract – 9%, or rate provided in the contract if

of breach. higher than 9%.

Tort – the earlier of a date 90 Tort – Intended Federal Funds Rate, as established
days after written demand by Federal Reserve Board, plus 3%, but only allowed
or from the date the demand when a claimant has made a demand for payment
was rejected without of a claim or an offer of settlement of a claim, the
counteroffer. demand was rejected, and the claimant subsequently
received a judgment exceeding the demand.

Montana Contract – Liquidated Contract – Breach. 10%, or rate provided in the contract.

Damages or

Ascertainable Amounts. Tort Injury – 30 days

Tort – Liquidated after submitting a written

damages or statement of the claim and

ascertainable amounts or how the specific sum was

at court’s discretion. calculated.

MUNICH RE Post Judgment Interest, Prejudgment Interest, Punitive Damages 2010 15

Prejudgment Interest

State Type of Action Payable Date Accrues Rate of Interest
Nebraska All
Contract/Liquidated Liquidated damages – 12%, or rate provided in the
Damages – Date due. contract.

Unliquidated Damages Unpaid balance of unliquidated damages – rate as
– Offer date if offer of provided in post judgmnet interest (see above).
settlement complies with
conditions and is exceeded Prejudgment interest not permitted against the state
by the judgment. or its political subdivisions.

Nevada All Date of service of summons Prime rate at largest bank in Nevada as ascertained
and complaint. If defendant by the Commissions of Financial Institutions on 1/1
makes a written offer that or 7/1 immediately preceding date of judgment, plus
is refused by the plaintiff 2%; or rate in written contract. Not applicable to
and plaintiff fails to obtain future damages.
a more favorable judgment,
no interest is payable from
the time of service of the
summons and complaint
and the time of entry of the
judgment.

New All Contract/Liquidated Simple interest rate determined on or before 12/1
Hampshire Damages – Interest runs by state treasurer based on prevailing discount rate
from filing of suit. on 26-week U.S. Treasury Bills, plus 2 percentage
points, effective the first day of following year.
Unliquidated Damages –
Interest runs from date of
writ or filing of petition to
date of judgment.

New Jersey Tort, Tort – Six months after action Simple interest shall run at the rate of 12% per
Contract (unless notice
of claim has been filed accrues or date of complaint, annum prior to 1/1/88 and thereafter the annual
under the New Jersey
Contractual Liability whichever is later. rate of interest shall equal the average rate of
Act).
return for the corresponding preceding fiscal year

Offer of Judgment – from terminating on 6/30 of the State of New Jersey

date of offer or date of Cash Management Fund as reported by the Division

completion of discovery, of Investment in the Department of Treasury. For

whichever is later. judgments in excess of $10,000, the rate is set forth

below, plus an additional 2%. The annual rate of

Non-Tort – discretionary. interest was 5.5% in 1996, 1997, 1998 and 1999, 5%

in 2000, 5.5% in 2001, 6% in 2002, 3% in 2003, 2%

in 2004, 1% in 2005, 2% in 2006, 4% in 2007, 5.5%

in 2008, 4.0% for 2009 and 1.5% in 2010.

Prejudgment interest is not allowed on any recovery
for future economic losses.

Offer of Judgment – If claimant’s offer is not
accepted, and verdict is as least as favorable as
rejected offer, claimant is allowed 8% interest
on the amount of any recovery – but only to the
extent it exceeds the amount of the annual rate of
interest. No prejudgment interest on recovery of
future economic losses. Prejudgment interest may
be awarded for claims arising out of or relating to
construction, installation or improvements to real
property.

16 MUNICH RE Post Judgment Interest, Prejudgment Interest, Punitive Damages 2010

Prejudgment Interest

State Type of Action Payable Date Accrues Rate of Interest
New Mexico All
Contract – Date claim Court has discretion to allow interest up to 10%
accrues. or, if contract action, 15%. State and its political
subdivisions are exempt under post judgment
Others – Date complaint is interest statute (see above), but not under statute
served on defendant. codifying interest rate when no written contract
exists.

New York Contract, Death Actions, Contract and Interference 9%, except otherwise provided by statute or rate
Interference with with Possession of Property provided in the contract. In equitable actions,
Possession of Property. – Date damage incurred interest, rate and date it accrues from are left to the
to date of verdict (court’s court’s discretion.
discretion).

Wrongful Death – Date of
death.

North Carolina All Contract – Date of breach. 8%, or rate provided in the contract.
(in noncontractual
actions only applicable to All other – Date action is
compensatory damages). commenced.

North Dakota Contract, Liquidated Contract – Date due. 6%, or rate provided in the contract, not to exceed
Damages, Non- the legal maximum (defined as 5.5% over the
contractual Obligations, Other – Discretion of court average rate of interest payable on U.S. Treasury Bills
Fraud, Oppression and or jury. but not less than 7%).
Malice.

Ohio Contract, Tort – Contract – Date due. Interest rate calculated at federal short term rate,
such that on 10/15, tax commissioner determines
if court determines federal short-term rate, plus 3%. The rate for 2009
is 5%.
plaintiff did not make a Other – Date the action had
good faith effort to settle, accrued.
no interest is due.

If lack of good faith effort to

settle by party required to

pay, date accrues from date

of cause of action.

MUNICH RE Post Judgment Interest, Prejudgment Interest, Punitive Damages 2010 17

Prejudgment Interest

State Type of Action Payable Date Accrues Rate of Interest
Oklahoma Contract – Rate specified.
Contract, Tort Contract – Date due.

Tort – Prior to 11/1/09, date On judgments rendered between 1/1/00 and 1/1/05,
suit filed. judgments bear interest at annual rate equal to
average U.S. Treasury Bill rate of preceding calendar
After 11/1/09, no year as certified by State Treasurer each January,
prejudgment interest shall plus 4%. Judgments against state and political
begin to accrue on tort subdivisions shall bear interest at same rate, but not
actions until 24 months to exceed 10% per year.
after suit commenced.
This 24-month limitation After 1/1/05 but prior to 11/1/09, prejudgment
does not apply to any tort interest shall be computed at an annual rate equal to
actions against the State the prime rate (3.25%), as listed in the first edition of
of Oklahoma or its political the Wall Street Journal published for each calendar
subdivisions. year and as certified to the Administrative Director of
the Courts by the State Treasurer on the first regular
business day following publication in January of each
year, plus 2%. The interest rate in 2009 is therefore
5.25%.

Effective 11/1/09, prejudgment interest shall be
determined using a rate equal to the average United
State Treasury Bill rate of the preceding calendar
year as certified to the Administrative Director of
the Courts by the State Treasurer on the first regular
business day in January of each year.

Oregon Contract, Ascertainable Date due. 9%, or rate agreed on by parties.
Damages

Pennsylvania Contract Contract – Date due. Contract – 6% or rate provided in the contract.
Tort – (Delay Damages)
B.I., Death, and P.D. Tort – One year after the date Tort – Damages for delay shall be calculated at the

original process was first rate equal to the prime rate (3.25%) as listed in the

served. first edition of the Wall Street Journal published for

each calendar year for which damages are awarded,

plus 1%, not compounded. The 2009 rate is therefore

4.25%

No interest will be awarded after the defendant has
made a written offer of settlement and continued
that offer in effect for at least 90 days or until
commencement of trial, which offer was refused and
the plaintiff did not recover more than 125% of the
offer.

Puerto Rico Where court concludes Debts – Date action accrues. Rate fixed by Finance Board of Office of
that a party has acted Commissioner of Financial Institutions.
rashly, the court may Damages – Date of Not permitted against Puerto Rico and political
impose on claims for complaint. subdivisions.
debts and actions for
damages.

18 MUNICH RE Post Judgment Interest, Prejudgment Interest, Punitive Damages 2010

Prejudgment Interest

State Type of Action Payable Date Accrues Rate of Interest
Rhode Island All
Personal Injury or Wrongful Contract – Rate provided in the contract.
Death based on professional
negligence: Date of written Tort – 12%. In civil actions where defendant is
notice of claim. covered by liability insurance, if plaintiff makes an
offer to defendant’s insurer to settle for less than or
All other actions – Date equal to the maximum amount of coverage under the
action accrues. policy and defendant’s insurer refuses offer, insurer is
liable for all interest due on judgment entered by the
court.

Written offer presumed rejected if insurer does not
respond within 30 days.

South Carolina Contract, Date action accrues. 8.75%, or rate provided in the contract.
Ascertainable Sums.

South Dakota Liquidated Damages or Date of damage (applicable 10%, or rate provided in the contract. Not
Ascertainable Amounts. only to those actions recoverable for punitive, future or intangible
commencing on or after damages.
7/1/90).
Prejudgment interest on damages arising from
inverse condemnation actions shall be 4.5%
and applies retroactively to the day the loss or
damage occurred in any pending action for inverse
condemnation.

Tennessee Awarded based upon Date due or the date the Contract – rate provided in the contract or by statute
equitable principles as action accrues. not to exceed maximum rate of 10%.
an element of damage at
the discretion of court or Other – any rate not in excess of 10%.
juries.

Texas All Contract – Date due and Contract – 6%, or rate provided in the contract.
ascertainable.
Tort – prime rate published by Board of Governors
Personal Injury, Wrongful of the Federal Reserve System; at least 5% (if prime
Death and Property Damage rate below 5%) and not more than 15% (if prime rate
– 180 days after defendant over 15%).
receives written notice of
claim or on day suit is filed, Prejudgment interest does not compound.
whichever occurs first.
Not applicable to exemplary damages.

Personal Injury, Wrongful Death and Property
Damage – not awarded on future damages.

MUNICH RE Post Judgment Interest, Prejudgment Interest, Punitive Damages 2010 19

Prejudgment Interest

State Type of Action Payable Date Accrues Rate of Interest
Utah 10%, or rate provided in the contract.
Contract – Ascertainable Contract – Date damages

Amounts. ascertainable.

Tort – Special Damages Tort – Date of occurrence of
actually incurred. act giving rise to the cause of
action.

Vermont All Date action accrues. 12%, or rate provided in the contract.

Virginia All at discretion of court Discretion of court or jury. 6%, or rate provided in the contract, up to 6%,
or jury. whichever is higher.

Virgin Islands Identifiable sums of Date due. 9%, prejudgment interest not charged against
money. government of Virgin Islands.

Washington Contract, Liquidated Date claim arises. 12%, or rate specified in contract. Not permitted
Damages. against state and its political subdivisions.

Tortious conduct. Tortious conduct: interest from date of entry at 2
percentage points above equivalent coupon yield, as
published by Board of Governors of Federal Reserve
System, of average bill rate for 26-week treasury bills
as determined at first bill market auction conducted
during calendar month preceding date of entry.

West Virginia Liquidated Damages, Date action accrues. 5%. After 6/7/06, the rate of prejudgment interest
Special Damages or is three percentage points above the Fifth Federal
Readily Determinable Reserve District secondary discount rate in effect on
Damages. the second day of January of the year in which the
judgment or decree is entered, not to exceed 11%, or
be less than 7%.

Wisconsin Contract, Liquidated Contract – Date of breach. Contract – Rate specified.
Damages, Other Tort.

Liquidated Damages – Liquidated Damages – 12%.
Date due. Offer of Judgment – 12%.

Other Tort – If plaintiff
makes offer to settle and is
refused, and plaintiff obtains
judgment equal to or greater
than offer, then plaintiff is
entitled to interest from date
of offer. If defendant’s offer
is refused, plaintiff is not
entitled to interest unless
plaintiff obtains judgment
equal to or greater than offer.

Wyoming Contract, Liquidated Date debtor receives notice 7%, or rate provided in the contract.
Damages. of amount due.

Conversion – at
discretion of court.

20 MUNICH RE Post Judgment Interest, Prejudgment Interest, Punitive Damages 2010

Punitive Damages

State Insurable Insurable if Vicarious Duty to Defend Tort Reform
Alabama Yes Yes Yes Yes

Alaska Yes Yes Yes Yes
(For gross negligence, but not for
willful misconduct).

Arizona Yes Yes Yes Yes

Arkansas Yes Yes Yes Yes
(Not arising from intentional torts).

California No Yes Yes Yes
(Except possibly for punitive
damages imposed in other states for
grossly negligent conduct).

Colorado No Undecided Yes

Connecticut Yes, if statutorily imposed. Yes Yes Yes

No, if directly assessed against the
insured, or if the insured’s actions
are intentional.

Delaware Yes Yes Yes Y­ es
(Unless specifically excluded by the
policy).

District of Yes, for negligent acts. Yes Yes
Columbia (No, for intentional acts.)

Florida No Yes Yes Yes

Georgia Yes Yes Yes Yes
(Unless explicitly excluded by the
policy).

Hawaii Yes Yes Yes Yes
(If specifically included in policy). (If specifically included in
policy).

Idaho Yes Yes Yes Yes
(Unless specifically excluded).

Illinois No Yes Yes Yes
(If any claim arguably
within the scope of
coverage).

Indiana No Yes No Yes
(As to claims for
punitive damages).

Iowa Yes Yes Yes Yes
(Unless specifically excluded).

MUNICH RE Post Judgment Interest, Prejudgment Interest, Punitive Damages 2010 21

Punitive Damages

State Insurable Insurable if Vicarious Duty to Defend Tort Reform
Kansas Yes Yes Yes
No, if directly assessed against the
insured. Yes

Kentucky Yes Yes
(For grossly negligent, not (Not for intentional
intentional, conduct). conduct).

Louisiana Yes Yes Yes Yes
(Unless specifically excluded). Yes

Maine No Yes
(Based on federal court
decision).

Maryland Yes Yes Yes Yes
Yes
Massachusetts No Undecided
Yes Yes
Michigan Yes Yes
(Based on federal court decision). (Based on federal court
decision).

Minnesota No Yes Yes Yes
(Under common law (If any claim arguably
and allowed by statute). within the scope of
coverage).

Mississippi Yes Yes Yes Yes
(Except for auto cases; may be
excluded by endorsement).

Missouri Yes Yes Yes Yes
(Where insured is government
entity).

Montana Yes Yes Yes Yes
(Must be expressly included in (Must be expressly
contract). included in contract).

Nebraska Not recognized at common law. Undecided Yes
Yes
Nevada No Undecided Yes Yes

New Hampshire Yes, unless expressly excluded by Yes Yes
policy.

New Jersey Probably no Yes
(The New Jersey Supreme Court
has recognized that there is no
declaration by the Court or the Leg-
islature that punitive damages are
uninsurable).

22 MUNICH RE Post Judgment Interest, Prejudgment Interest, Punitive Damages 2010

Punitive Damages

State Insurable Insurable if Vicarious Duty to Defend Tort Reform
New Mexico Yes Yes Yes Yes

New York No Undecided Yes Yes

North Carolina Yes, unless specifically excluded. Yes, but may be Yes Yes
(Not for intentional acts.) specifically excluded.

North Dakota Yes if expressly included in a policy Undecided Yes
(except for intentional or criminal
acts).

Ohio No No Yes

Oklahoma No Yes Yes Yes

Oregon Yes Yes, but only for negligent Yes Yes
(Not for intentional acts). acts.

Pennsylvania No Yes Limited to claims Yes

covered by the policy.

Puerto Rico Not recognized.

Rhode Island No Undecided Yes

South Carolina Yes Yes Yes Yes

South Dakota No Undecided Yes Yes
(If any claim arguably
falls within the policy’s
coverages).

Tennessee Yes Yes Yes Abolished joint
(Not for intentional acts). and several
liability by case
law.

Texas Yes, but only if covered by insurance Yes Yes Yes
policy and not outweighed by public (If any claim arguably
policy interest in requiring insured falls within the policy’s
to bear the cost. coverages).

Utah No No Yes

Vermont Yes Yes Yes Yes

Virgin Islands No No Yes

(Insurable if policy contains (Insurable if policy

language specifically required by VI. contains language

ST. T. 22 § 815). specifically required by VI.

ST. T. 22 § 815).

MUNICH RE Post Judgment Interest, Prejudgment Interest, Punitive Damages 2010 23

Punitive Damages

State Insurable Insurable if Vicarious Duty to Defend Tort Reform
Virginia No Yes Yes
Yes
(Not for intentional acts). Yes Yes
Yes Yes
Washington Yes Undecided Yes Yes

West Virginia Yes (Not for intentional acts). Yes Yes

Wisconsin Yes (But not for uninsured motorist Yes
policies).

Wyoming Yes Yes

24 MUNICH RE Post Judgment Interest, Prejudgment Interest, Punitive Damages 2010

Post Judgment Interest
Prejudgment Interest
Punitive Damages

Canada 2010

MUNICH RE Post Judgment Interest, Prejudgment Interest, Punitive Damages 2010 25

Post Judgment Interest – Canada

Province Type of Action Date Accrues Rate of Interest
Alberta Payable
Date from which judgment is Rate fixed by Lieutenant Governor in
All payable to date judgment first Council by regulation before beginning
satisfied. of year.

British Columbia All Date of Judgment or date money Rate fixed by Registrar bi-yearly (1/1 and
is payable under the judgment, 7/1). Equal to prime lending rate. Court
whichever is later. Court has may vary rate. Annual simple interest
discretion to fix date from which rate equal to the prime lending rate of
interest is to run. the banker to the government, calculated
for first six months of year at interest
rate as of 1/1 and for second six months
of year at interest rate as of 7/1.

Manitoba All actions unless the Court Date of Pronouncement of the Bank rate at end of first day of quarter,
orders otherwise, or parties Order, notwithstanding stay or for the quarter in which the order is
agree that no rate of post appeal of Order. pronounced. Court may vary rate
judgment interest applies or if parties agree as to special rate of
that no post judgment interest interest.
is payable.

New Brunswick All, including costs, subject to Date of Verdict or Judgment. Rate fixed by Rules of the Court. After
the discretion of the Court. 3/15/94 – 7% per year, or rate as parties
agree as to special rates of interest.

Newfoundland Judgments in all actions, Date Judgment is payable until Rate in effect on the last day of each
except on interest. satisfied. three-month period beginning on the day
on which the judgment debt is payable
under the judgment. Effective 1/1/09,
interest rate is 2%.

Northwest All; subject to the discretion of Date trial judgment pronounced By Order of the Commissioner, the rate
Territories
the court. and date money payable will be the prime business rate at 1/1 for

thereunder, whichever is the later. the first six months of the year and 7/1

Court has discretion to fix date for the last six months of the year. Court

from which interest is to run. has discretion to increase or decrease

rate of interest.

Nova Scotia Every Judgment Debt. Time of rendering verdict or 5%, or by regulation within meaning of
giving judgment notwithstanding Regulations Act.
suspension of verdict/giving of
judgment or an appeal.

Nunavut All, subject to the discretion of The latter of the date the The prime business rate as of 1/1 for
the first six months of the year, and the
the Court. judgment is pronounced and prime business rate as of 7/1 for the
last six months of the year. Court has
the day money is payable under the discretion to disallow, to increase or
decrease the rate of interest, or to fix day
the judgment, notwithstanding from which interest should run.

postponement of judgment, an

appeal or other proceedings.

Court has discretion to fix day

from which interest should run.

26 MUNICH RE Post Judgment Interest, Prejudgment Interest, Punitive Damages 2010

Post Judgment Interest – Canada

Province Type of Action Date Accrues Rate of Interest
Ontario Payable
From date order was made; Bank rate at end of first day of the
All money owing under an subject to the discretion of last month of the quarter preceding
order including costs fixed the Court to set interest for a the quarter in which the date of the
or to be assessed; subject to different period. order falls, rounded to the next higher
the discretion of the Court. whole number where the rate includes
Interest shall not be awarded a fraction + 1%. The interest rate for
where interest is payable the first quarter of 2010 is 2.0%. The
by a right other than under current rate is available at: http://www.
the post judgment interest attorneygeneral.jus.gov.on.ca/english/
statute. Court has discretion courts/interestrates.asp.
to disallow interest.

Prince Edward Any judgment debt rendered From date of court order. Court Rate established by the Bank of Canada
Island pursuant to any civil has discretion to allow interest as the minimum rate the Bank of Canada
proceeding including costs for a different period. makes short-term advances to banks at
assessed or fixed by Court, the end of the first day of the last month
but excluding where interest of the quarter in which the date of the
payable by right other than order falls, rounded to next highest
under the post judgment whole number where the bank includes a
interest statute. Court has fraction plus 1% and published quarterly
discretion to disallow interest. in the Gazette. Court has discretion to
allow interest at a different rate.

Québec Contract and Tort Date of Judgment. Legal rate or contract rate.
Plus: variable indemnity based on rates
published quarterly by Minister of
Revenue.

Saskatchewan All Judgments debts. Date of Verdict or Judgment is 5% per annum.
given, notwithstanding an appeal,
unless otherwise ordered by the
court,.

Yukon All, except by consent Day judgment pronounced Prime rate (lower rate of interest quoted

judgment (unless debtor or date money is payable by chartered banks to borrowers for

consents) or if interest payable thereunder. prime business loans, as published

by right other than under the Court has discretion to fix a by Bank of Canada in Bank of Canada

post judgment interest statute. different date from which interest Review) for the first six months of the

is to run. year calculated at prime rate as of 1/1

and for the last six months of the year

calculated at prime rate as of 7/1.

Court has discretion to vary rate of

interest.

MUNICH RE Post Judgment Interest, Prejudgment Interest, Punitive Damages 2010 27

Prejudgment Interest – Canada

Province Type of Action Date Accrues Rate of Interest
Alberta Payable

All, subject to the discretion of the Date cause of action arose to Rate of pecuniary damages fixed
Court to disallow. Interest shall date of judgment. Court has by Lieutenant Governor in Council
not be awarded on pecuniary loss discretion to set interest for a before beginning of year; if no rate
identified after day of judgment different period. prescribed, rate from previous year will
and identified by Court, interest, stay in effect. Non-compounding. 4%
exemplary or punitive damages, per year on non-pecuniary damages
costs, on borrowed money or fixed by law. Court has discretion to
interest on borrowed money, increase or decrease rate.
money paid into the court and
accepted or contained in an offer
of judgment or an offer to settle
made and accepted, judgment
on consent (unless agreed to by
parties), if agreement between the
parties as to interest or if payment
of interest is otherwise provided
by law.

British Columbia All pecuniary judgments, except Special Damages – Calculated Rate set by court.
pecuniary loss arising after from end of six months in
the date of order, if agreement which incurred to the date of
between parties, interest, costs, the order on the total of the
if waiver by creditor, or non- special damages incurred.
pecuniary damages arising from General Damages – date on
personal injury or death. which action arose to date of
order.

Manitoba All, subject to discretion of the Liquidated Amounts – date Minimum rate at which Bank of
Canada makes short term advances to
Court. Interest shall not be cause of action arose to date the banks at end of the day of the first
quarter for the quarter in which the
awarded on consent judgments order is made. relevant proceeding is commenced,
rounded off to the nearest .5% and
(unless agreed to by the parties), if published quarterly in the Gazette
unless there is agreement between
agreement between the parties as Unliquidated Amounts – parties. 3% discount for future
damages until altered by regulation.
to interest or if payment of interest date written notice of claim
Quarterly interest rate for the quarter
is otherwise provided by law, given to liable party to date beginning 7/1/1986 and for all previous
quarters is 9% per annum.
non-pecuniary damages, punitive order is made. Special
Court has discretion to increase or
or exemplary damages or by Damages: amount of special decrease interest.

agreement between the parties. damages incurred in each

six month period following

date of notice less amount of

liability of unsuccessful party

reduced pursuant to statutes,

calculated from first day of

each six month period to date

order is made. Court has

discretion to set interest for a

different period.

New Brunswick Within Court’s discretion for all Whole or any part of period Rate fixed by Rules of the Court.
proceedings for recovery of debt between the date the cause of
or damages, except non-pecuniary action arose and the date of
loss of automobile accident judgment.
plaintiff.

28 MUNICH RE Post Judgment Interest, Prejudgment Interest, Punitive Damages 2010

Prejudgment Interest – Canada

Province Type of Action Date Accrues Rate of Interest
Newfoundland Payable

Judgments for the payment of Date cause of action arose Rate determined by averaging interest
money or where money is owing, to the date of judgment. No rates in effect during the period.
except monetary loss arising after interest payable for actions
the day of judgment and that is arising before 4/2/84. Rate for damages for expenses or lost
identified by the Court, interest, income determined by the total of
exemplary or punitive damages, Court has discretion to award those damages sustained within the
costs, borrowed money or interest interest for a different period. 3-month period beginning on the day
on borrowed money, money the cause of action arose and whithin
paid into court and accepted in each subsequent 3-month period, and
satisfaction of claim, consent calculating intrerest from the last day
judgment (unless agreed to by of each 3-month period to the day of
the parties), between the parties judgment, on the total of the damages
regarding interest, or interest sustained within the 3-month period,
payable by another rule of law. at the interest rate in effect or the last
Within discretion of Court to day of the 3-month period.
disallow interest.
Effective 1/1/09, interest rate is 2%.

Court has discretion to award interest
at another rate.

Northwest Judgments in all actions, except Liquidated amounts – date the Prime business rate (Bank of Canada
Territories Review) at 1/1 for the first six months
exemplary or punitive damages, cause of action arises to date of the year and 7/1 for the last six
months of the year.
interest, costs, pecuniary loss of judgment.
Rate of interest for capitalized value of
arising after day of the judgment Unliquidated amounts – date award for the pecuniary damages, to
extent it reflects difference between
and that is identified by a finding written notice of claim given estimated investment and price
inflation rates, is 2.5% per year.
of the court, where a consent to person liable to date of

judgment is entered (unless debtor judgment.

consents), or where interest is

payable by right other than the For Special Damages –

prejudgment interest statute. interest calculated on total

Within discretion of Court to of such damages incurred at

disallow interest. end of period commencing

with notice and ending with

whichever 1/1 or 7/1 first

follows, then at end of each

subsequent 6‑month period,

and at the day of judgment.

Within discretion of Court to

award interest for a different

period.

Nova Scotia Judgments awarded in actions When cause of action arises to Rate is set by the court. Rate of interest
for recovery of debt or damages,
except Court has discretion to date of judgment after trial or to determine capitalized value of award
disallow interest if the interest
is payable by agreement or after any subsequent appeal. of future pecuniary damages, to the
otherwise by law, the claimant has
not been deprived of the use of extent it reflects difference between
money awarded, or the claimant
is responsible for undue delay in Court has discretion to reduce estimated investment and price
litigation.
period if the interest is payable inflation, is 2.5% per year. Court has

by agreement or otherwise by discretion to reduce rate if the interest

law, the claimant has not been is payable by agreement or otherwise

deprived of the use of money by law, the claimant has not been

awardedd, or the claimant is deprived of the use of money awarded,

responsible for undue delay in or the claimant is responsible for

litigation. undue delay in litigation.

MUNICH RE Post Judgment Interest, Prejudgment Interest, Punitive Damages 2010 29

Prejudgment Interest – Canada

Province Type of Action Date Accrues Rate of Interest
Nunavut Payable

Judgments in all actions, except Liquidated Claim: from the day The prime business rate as of1/ 1 for
exemplary or punitive damages,
interest, costs, pecuniary loss the cause of action arose to the first six months of the year, and
arising after day of judgment and
identified by finding of Court, the date of judgment. the prime business rate as of 7/1 for
where a consent judgment is
entered (unless judgment debtor the last six months of the year. Rate of
consents), or where interest is
payable by right other than under Unliquidated Claim: from the interest to determine capitalized value
prejudgment interest statute.
Court has discretion to disallow day of notice in writing of of award of future pecuniary damages,
interest.
claim to person liable to the to extent it reflects difference between

date of judgment. estimated investment and price

inflation, is 2.5% per year. Court has

Special Damages: total of discretion to increase or decrease the
such damages incurred at rate of interest.

end of period commencing

with giving of notice in writing

and ending with whichever

of 1/1 or 7/1 first allows; at

end of each subsequent six

month period; and at date of

judgment.

Court has discretion to fix
another day from which
interest is to run.

Ontario Judgments for the payment of Date cause of action arose to Bank rate at end of first day of last
money in all actions, except the date of order. Court has month of the quarter preceding the
exemplary or punitive damages, discretion to allow interest for quarter in which the proceeding was
interest, costs, pecuniary loss another period. commenced, rounded to nearest
arising after the date of the order tenth of percentage point except for
and that is identified by a finding B.I. non-pecuniary loss which rate
of the court, advance payment currently set by rules of court at 5%
made toward settlement of the per year. For past pecuniary loss, the
claim, where a consent judgment rate of interest shall be calculated on
is entered (except by consent the total past pecuniary loss at the
of debtor), or where interest is end of each six-month period and at
payable by right other than under date of order. The interest rate for
the prejudgment interest statute. the first quarter of 2010 is .5%. The
Court has discretion to disallow current rate is available at: http://www.
interest. attorneygeneral.jus.gov.on.ca/english/
courts/interestrates.asp.

Rate of interest to determine amount
of award of future pecuniary damages,
to extent it reflects difference between
estimated investment and price
inflation, is 15-year period that follows
the start of the trial, the average of
the value for the last Wednesday in
each month of the real rate of interest
on long-term Government of Canada
real return bonds, as published for
the 12 months ending on August 31 in
the year before the year in which trial
begins, less 1% and rounded to the
nearest .25%; and for any later period,
2.5% per year. Court has discretion to
allow interest at a higher or lower rate.

30 MUNICH RE Post Judgment Interest, Prejudgment Interest, Punitive Damages 2010

Prejudgment Interest – Canada

Province Type of Action Date Accrues Rate of Interest
Payable
Prince Edward
Island Any order for the payment of Date cause of action arose Bank rate established by the Bank of
Canada as the minimum rate where
money. Interest shall not be to date of order. Court has the Bank of Canada makes short-
term advances to banks at the end of
awarded on the following: Punitive discretion to allow interest for the first day of the last month of the
quarter preceding the quarter in which
and exemplary damages, interest, a different period. the date of the order falls, rounded to
the next highest whole number where
costs, pecuniary loss arising after the bank includes a fraction, plus 1%
and published quarterly in the Gazette.
date of order and that is identified Rates for non-pecuniary loss in
personal injury action equals discount
by a finding of the Court, advance rate under Rules of Court. Rates for
past pecuniary loss calculated on total
payment toward settlement, when post pecuniary loss at end of each
6-month period and at date of order.
order is made on consent (except Court has discretion to allow interest at
a highest or lower rate.
by consent of debtor), and interest

payable as of right. Court has

discretion to disallow interest.

Québec Contract and Tort, but not on Date of default for damages Legal rate, or rate of contract.
interest unless provided by
agreement, law or demand in suit. resulting from delay in Plus: variable additional indemnity

performance of an obligation based on rates published quarterly by

to pay money. For other Minister of Revenue.

damages, date of default or

any other later date considered

appropriate by Court.

Saskatchewan Actions for damages or for Date on which loss or damage Set by Lieutenant Governor in
recovery of a debt; not on is first sustained to the day of Council and published in Gazette by
pecuniary loss arising after day of judgment. Rate determined Inspector of Legal Officers. Damages
judgment and identified by court, by averaging the interest rates for expenses incurred or income
exemplary or punitive damages, in effect during the accrual lost - rates determined by the total of
interest, costs, on borrowed period. Court has discretion to those damages sustained within the
money and interest on borrowed award interest for a different 3-month period commencing on the
money, money paid into Court and period. day on which loss or damages is first
accepted in satisfaction of claims, sustained and within each subsequent
judgment on consent (unless 3-month period and by calculating
agreed by parties) if agreement the interest from the last day of each
between parties as to interest, or 3-month period to the day of judgment,
if payment of interest is otherwise on the total of damages sustained with
provided by law. Court has the 3-month period at the interest
discretion to disallow interest. rate in effect on the last day of that
3-month period. Court has discretion
to award interest at a different rate.

Yukon Judgments for the payment of Monetary Judgments: from the Prime Rate (lowest rate of interest
money, except exemplary or date the cause of action arose quoted by chartered banks to
punitive damages, interest, costs, to date of judgment; Special borrowers for prime business loans, as
pecuniary loss arising after date damages – on balance incurred published by Bank of Canada in Bank
of judgment and identified by as totaled at end of each six- of Canada Review) as of the month
a finding of the Court, where month period following date preceding the month in which the
a consent judgment is entered cause of action arose and at action was commenced. Court has
(unless debtor consents), or where date of judgment. Court has discretion to increase or decrease rate.
interest is payable by right other discretion to allow interest for
than under the prejudgment a different period.
interest statute. Court has
discretion to disallow interest.

MUNICH RE Post Judgment Interest, Prejudgment Interest, Punitive Damages 2010 31

Punitive Damages – Canada

Province Insurable Insurable if Not Duty to Defend
Alberta Vicarious Recognized

Undetermined, although these Questionable Yes, only if obligated to
indemnify under the policy;
damages can be excluded by (Can be excluded by policy unless the policy provides for a
defense even in circumstances
policy wording, or can be “outside wording). where the insurer will not
be required to indemnify. If
the purview of the Policy.” punitive damages are excluded
but alleged in underlying claim,
(Awarded only in limited insured can elect to retain
independent counsel separate
circumstances if there has from insurer’s retained counsel
that is defending covered
been reprehensible, wanton, or portion of underlying claim.

intentional conduct which has not

otherwise been punished).

British Undetermined Yes Not if excluded in policy
Columbia (Can be excluded by policy (Can be excluded by policy wording and no other claims
wording). wording). within coverage. Extrinsic
evidence can be considered to
determine nature of allegations
in regard to whether there is a
duty to defend.

Manitoba Undetermined Yes Yes, where policy is ambiguous.
(Arguably insurable where (Can be excluded by policy
policy is ambiguous, but can be wording).
excluded by policy wording).

New Brunswick Undetermined Undetermined Yes, duty arises where there is a
(Can be excluded by policy “mere possibility” that the claim
wording). advanced against the insured is
covered by the policy.

Newfoundland Undetermined Undetermined Not if excluded in policy
(Can be excluded by policy (Can be excluded by policy wording and no other claims
wording. May also be awarded wording. No express within coverage.
at Judge’s discretion in certain provision in insurance
circumstances. Normally legislation).
requires malice in the offending
conduct).

Northwest Undetermined Probably Undetermined; as per policy
Territories wording on vicarious coverage.

Nova Scotia Undetermined Undetermined Undetermined

Nunavut Undetermined Undetermined Undetermined

Ontario Yes, although can be excluded by Undetermined Not if excluded in policy
policy wording. wording and no other claims
(Ontario law does not prohibit within coverage. If other claims
insuring claims for punitive within coverage, once claim
damages, and insurers offer for punitive damages made,
coverage for punitive damages in must notify insured of need for
certain instances). separate legal advice.

32 MUNICH RE Post Judgment Interest, Prejudgment Interest, Punitive Damages 2010

Punitive Damages – Canada

Province Insurable Insurable if Not Duty to Defend
Vicarious Recognized
Prince Edward Undetermined
Island Undetermined Yes, mere possibility that a
claim is within coverage is
sufficient to require insurer to
defend.

Québec Yes Yes Yes. Except Yes, provided there is coverage.
(But normally excluded by policy
wording). (But normally excluded by for some

policy wording). statutes.

Saskatchewan Yes Likely yes Yes, provided there is coverage.
(Unless excluded by policy Duty arises when underlying
wording). complaint alleges any facts
that may fall within coverage of
policy.

Yukon Undetermined Probably Undetermined; as per policy
wording on vicarious coverage.

MUNICH RE Post Judgment Interest, Prejudgment Interest, Punitive Damages 2010 33

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