Interest As Damages - Damages In General - CA Civil Law

Section § 3287

If someone is owed money that can be calculated and they have the right to get it on a specific date, they can also claim interest from that date unless the debtor can't pay due to legal reasons or creditor's actions. This applies to all types of debtors, including government entities. If damages are awarded in a contract case where the amount wasn't clear, the court may decide on interest from a date before the judgment, but not before the lawsuit started. For tax or fee claims against a public entity, interest rate follows the U.S. Treasury yield, capped at 7% per year, until the judgment is enforceable.

(a) A person who is entitled to recover damages certain, or capable of being made certain by calculation, and the right to recover which is vested in the person upon a particular day, is entitled also to recover interest thereon from that day, except when the debtor is prevented by law, or by the act of the creditor from paying the debt. This section is applicable to recovery of damages and interest from any debtor, including the state or any county, city, city and county, municipal corporation, public district, public agency, or any political subdivision of the state.

(b) Every person who is entitled under any judgment to receive damages based upon a cause of action in contract where the claim was unliquidated, may also recover interest thereon from a date prior to the entry of judgment as the court may, in its discretion, fix, but in no event earlier than the date the action was filed.

(c) Unless another statute provides a different interest rate, in a tax or fee claim against a public entity that results in a judgment against the public entity, interest shall accrue at a rate equal to the weekly average one year constant maturity United States Treasury yield, but shall not exceed 7 percent per annum. That rate shall control until the judgment becomes enforceable under Section 965.5 or 970.1 of the Government Code, at which time interest shall accrue at an annual rate equal to the weekly average one year constant maturity United States Treasury yield at the time of the judgment plus 2 percent, but shall not exceed 7 percent per annum.

damages recovery interest on damages debtor creditor calculation of interest government debt contract claim damages unliquidated claim judgment interest rate public entity tax claim U.S. Treasury yield interest rate cap Section 965.5 Section 970.1 court discretion on interest

(Amended by Stats. 2013, Ch. 424, Sec. 1. (AB 748) Effective January 1, 2014.)

Section § 3288

This law says that when someone breaks a duty that isn't related to a contract, or in cases involving severe wrongdoing like oppression, fraud, or malice, a jury can choose to award interest on any damages given.

In an action for the breach of an obligation not arising from contract, and in every case of oppression, fraud, or malice, interest may be given, in the discretion of the jury.

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(Enacted 1872.)

Section § 3289

This law explains what happens to interest rates on contracts when there's a breach, or breaking, of that contract. If a contract specifies an interest rate, that rate continues to apply even after the breach, until the contract is replaced or fulfilled by something like a court judgment. If no interest rate is mentioned in a contract made after January 1, 1986, then an interest rate of 10 percent per year applies once there's a breach. However, this rule does not apply to notes that are backed by a deed of trust on real estate.

(a) Any legal rate of interest stipulated by a contract remains chargeable after a breach thereof, as before, until the contract is superseded by a verdict or other new obligation.

(b) If a contract entered into after January 1, 1986, does not stipulate a legal rate of interest, the obligation shall bear interest at a rate of 10 percent per annum after a breach.

For the purposes of this subdivision, the term contract shall not include a note secured by a deed of trust on real property.

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(Amended by Stats. 1986, Ch. 176, Sec. 1. Effective June 23, 1986.)

Section § 3289.5

This law states that the interest rate for a finance charge on a retail installment contract will be the legal interest rate specified in that contract, as regulated under specific laws about retail installment sales.

For purposes of Section 3289, the rate of the contracted finance charge shall be the legal rate of interest stipulated by a retail installment contract subject to Chapter 1 (commencing with Section 1801) of Title 2 of Part 4 of Division 3.

retail installment contract contracted finance charge legal rate of interest interest rate finance charge retail installment sales Chapter 1 Title 2 Part 4 Division 3 Section 1801 stipulated interest rate consumer finance contractual interest Chapter 1 laws

(Added by Stats. 1985, Ch. 224, Sec. 1.)

Section § 3290

If you accept full payment of the original amount owed to you, you lose the right to claim any interest that was supposed to be paid on that amount.

Accepting payment of the whole principal, as such, waives all claim to interest.

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(Enacted 1872.)

Section § 3291

This law allows someone who sues for personal injury in California to request interest on the damages they’re seeking. If the person suing makes a settlement offer that the other side rejects and then they win a better amount in court, they can earn 10% interest per year on that amount starting from the date of the settlement offer. However, this does not apply to public organizations or government employees doing their jobs, who won't be responsible for paying this interest.

In any action brought to recover damages for personal injury sustained by any person resulting from or occasioned by the tort of any other person, corporation, association, or partnership, whether by negligence or by willful intent of the other person, corporation, association, or partnership, and whether the injury was fatal or otherwise, it is lawful for the plaintiff in the complaint to claim interest on the damages alleged as provided in this section.

If the plaintiff makes an offer pursuant to Section 998 of the Code of Civil Procedure which the defendant does not accept prior to trial or within 30 days, whichever occurs first, and the plaintiff obtains a more favorable judgment, the judgment shall bear interest at the legal rate of 10 percent per annum calculated from the date of the plaintiff’s first offer pursuant to Section 998 of the Code of Civil Procedure which is exceeded by the judgment, and interest shall accrue until the satisfaction of judgment.

This section shall not apply to a public entity, or to a public employee for an act or omission within the scope of employment, and neither the public entity nor the public employee shall be liable, directly or indirectly, to any person for any interest imposed by this section.

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(Added by Stats. 1982, Ch. 150, Sec. 1.)