What is Pre-judgment Interest?
Ryan Bradley | February 20, 2014 | About the Firm
Under Missouri law, pre-judgment interest may be recovered by a Missouri personal injury attorney for his client in certain circumstances. In all Missouri cases filed after August 28, 2005, Missouri law permits the recovery of pre-judgment interest where the attorney does the following:
- Makes demand for prejudgment interest in writing and must list the medical providers of the claimant, include copies of all reasonably available medical bills, other medical information and authorize the other party to obtain employment and medical records of the claimant:
- Interest is calculated 90 days after the demand is received:
- An affidavit setting out the nature of the claim and the claimed damage is provided:
- Demand must be kept open for 90 days:
- The claim for prejudgment interest in a motor vehicle accident is calculated at an interest rate that is equal to the Federal Funds Rate plus 3% for pre-judgment interest.
The issue of securing prejudgment interest for a victim in a Missouri motor vehicle accident can be highly technical and usually requires to assistance of a skilled Missouri personal injury lawyer. The statute must be followed exactly otherwise you may forfeit your right to pre-judgment interest. If you or a loved one is the victim of any type of accident you should seek the assistance of competent counsel to evaluate and assist in handling of your claim or claims.
Our St. Louis personal injury lawyers usually prepare pre-judgment interest demands pursuant to Missouri statute. However, there are instances where presentation of a pre-judgment interest demand is not in the best interest of the client.
In addition to pre-judgment interest, Missouri law provides for post-judgment interest after the judgment becomes final. Under RSMo 408.040(2), on tort claims, interest is affixed at the rate of 5% plus the prevailing federal funds rate. This way, if the defendant or his insurance company refuses to timely pay a judgment, interest accrues on top of the original amount due to you.
For more information about how you can obtain interest on your claim, contact us.