Prejudgment Interest in Contract Disputes
Douglas J. Pepe, a partner with Joseph Hage Aaronson, writes that in the post-crisis era of near zero interest rates, New York's 9 percent prejudgment interest rate can actually prove to be a plaintiff's best investment strategy. Are there options available to defendants to stop the clock on statutory prejudgment interest in contract disputes? In New York state court, the clear answer is "yes." In federal court, the answer is a bit more complicated.