Prejudgment Interest for Economic Damages is Predicated on the Loss Theory

The purpose of prejudgment interest is to make the plaintiff whole from the date of the loss. Arizona Chemical Co., LLC v. Mohawk Industries, Inc., 197 So.3d 99, 102 (Fla. 1st DCA 2016) (explaining that Florida applies the loss theory as it pertains to prejudgment interest which is simply to make the plaintiff whole and not to penalize the defendant or give the plaintiff a windfall). A prevailing party is entitled to prejudgment interest on damages that have been liquidated. Albanese Popkin Hughes Cove, Inc. v. Scharlin, 141 So.3d 743, 746 (Fla. 3d DCA 2014). Stated differently, “[o]nce liquidated damages have...

26 October

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Prejudgment Interest and Post-judgment Interest

Posted by David Adelstein

in Trial Perspectives

Prejudgment interest is routinely a component of a claimant’s monetary damages. The claimant wants prejudgment interest on the principal amount due and owing. If no interest rate is set forth in the claimant’s contract, then the interest will accrue at the statutory rate. Then, once a judgment is entered, post-judgment interest will accrue on the judgment until it is paid. See Florida Statute s. 55.03. Florida’s statutory interest rate is set by the Chief Financial Officer and published here. For instance, the current statutory interest rate is 4.75% per annum (and it has been 4.75% for numerous years). This translates to a...