This week, to continue the LRANY video series, we bring to you a video interest on judgments. Currently, defendants must pay interest on judgments at a fixed rate of 9%, which is significantly higher than the market rate. This rate forces defendants to settle meritless lawsuits rather than risk paying the exorbitant interest rate. The current practice inflates the value of judgments beyond the real value intended by the jury, and drives up costs to local governments and taxpayers.
LRANY supports commonsense legislation (S.3114 (Griffo))which ties the rate of interest on judgments to the prevailing market interest rate. This legislation would improve fairness in litigation, ensure a defendants’ right to due process and reduce costs to taxpayers.