Connecticut Law Revision Commission

 

 

Proposed revision concerning postjudgment interest

 

 

January 6, 2003

 

 

Prepared by David L. Hemond

 

 

 

Section 1.

 

Sec. 37-3a. Rate of prejudgment interest recoverable as damages.  Taxes assessed as damages.  Interest due to resident obligee where maker or mortgage security located out of state.

 

(a)  Subsection (b) of this section governs the award of prejudgment interest in civil actions and arbitrations proceedings, section 37-3b of the general statutes, as amended by section 2 of this act, governs the award of postjudgment interest on money judgments, section 37-3c governs the interest to be included on a judgment of compensation for the taking of property by eminent domain, and section 52-192a governs prejudgment interest, which may be in addition to interest awarded under this section, that may be awarded in the case of a failure to accept an offer of judgment.

 

(b)  [Except as provided in sections 37-3b, 37-3c and 52-192a, interest]  Prejudgment interest at the rate of ten per cent a year, and no more, may be recovered and allowed in civil actions or arbitration proceedings under chapter 909, including actions to recover money loaned at a greater rate, as damages for the detention of money after it becomes payable.

 

(c)  Judgment may be given for the recovery of taxes assessed and paid upon the loan, and the insurance upon the estate mortgaged to secure the loan, whenever the borrower has agreed in writing to pay such taxes or insurance or both.

 

(d)  Whenever the maker of any contract is a resident of another state or the mortgage security is located in another state, any obligee or holder of such contract, residing in this state, may lawfully recover any agreed rate of interest or damages on such contract until it is fully performed, not exceeding the legal rate of interest in the state where such contract purports to have been made or such mortgage security is located.

 

 

 

 

 

Sec. 2.

 

Sec. 37-3b. Rate of postjudgment interest recoverable [in negligence actions].

 

(a) Except as provided in subsections (b) and (c) of this section, a money judgment in any action includes postjudgment interest at the rate of ten percent a year on the amount of the judgment due, commencing on the date that the judgment is rendered, until satisfaction of that judgment.

 

(b)  If a money judgment is rendered in an action arising from a contract that included a contractual rate of interest less than the rate of interest due under subsection (a) of this section, the money judgment includes postjudgment interest in accordance with the interest due under the contractual obligation, rather than in accordance with the rate due under subsection (a) of this section, until satisfaction of that judgment.

 

(c)    For a cause of action to recover damages for injury to the person, or to real or personal property, caused by negligence and arising on or after May 27, 1997, a money judgment includes  postjudgment interest at the rate of ten per cent a year [, and no more, shall be recovered and allowed in any action to recover damages for injury to the person, or to real or personal property, caused by negligence,] on the amount of the judgment due, computed from the date that is twenty days after the date [of] the judgment is rendered or the date that is ninety days after the date of verdict, whichever is earlier [, upon the amount of the judgment], until satisfaction of that judgment.

[(b)] (d)  If any plaintiff [in such action] after the verdict is entered or the judgment rendered files a postverdict or postjudgment motion or an appeal, the recovery of interest by such plaintiff shall be tolled and interest shall not be added to the judgment for the period that such postverdict or postjudgment motion or appeal is pending before the court unless so ordered by the court. The provisions of this subsection shall not apply if the reason for the filing of a postverdict or postjudgment motion or appeal by the plaintiff is to reply to or answer a motion or appeal filed by a defendant.

 

(e)  The rules and forms for postjudgment procedures adopted by the judges of the Superior Court in accordance with section 52-350c of the general statutes shall provide for the inclusion and enforcement of postjudgment interest on money judgments.