While most personal injury cases are settled out of court, there are times when going to trial is the only option. It’s a time-consuming and frustrating process for anyone, but it’s worth it if in the end, you receive a judgment in your favor.
Unfortunately, the awarding of a judgment by the court doesn’t guarantee that you will receive the money in a timely manner. Some defendants will drag their heels on cutting you a check, or they will appeal the court’s decision. Based on what happens at the appeal hearing, the original award may be reduced or increased, and perhaps thrown out altogether.
In the meantime, you’re still left without the funds you deserve. If you’ve found yourself in this position, you are wondering if your judgment amount accrues interest while it remains unpaid by the defendant. This is a perfectly fair question, as unpaid debts typically accrue interest.
As the victim of someone else’s negligence, it’s essential to have a seasoned personal injury lawyer by your side. This is particularly important if your case goes to trial, where a skilled lawyer is needed to sway a jury and ensure that you receive maximum payment for your injuries. However, you may need continued representation from your lawyer to enforce a judgment after it’s been issued by the court.
Normandie Law Firm is here to guide you through the legal process and ensure that you receive a fair settlement, based on your level of harm and suffering. Call us today and schedule a time to speak with a California personal injury lawyer.
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Do I Earn Interest on the Loss of Income Portion of an Accident Case?
Yes, you can gain interest on the lost income portion of a personal injury award if you receive a jury verdict. Essentially, the interest starts to accrue from the date of the jury verdict, or from the time your lawyer enters a judgment.
The rate of interest is decided by laws that are specific to civil lawsuits within each state. Thus, the interest rates for personal injury lawsuits are different than the rates in federal courts. This is due to the fact that federal courts base their interest rates on the average yield by U.S. Treasury notes.
Currently, the post-judgment statutory interest rate in California is 10% on an annual basis. However, if the defendant is a government entity (local or state), the rate of interest is 7%. The California Courts provide specific guidelines on how the interest is calculated. Essentially, the formula takes the total judgment amount and multiplies it by the yearly rate of 10%. Then, it’s divided by the number of days in one year. As an example:
$50,000 x .10 = $5,000
$5,000/365 = $13.70 daily interest
Does the Amount of Earned Interest Stay the Same?
Since there is an absolute formula for the calculation of interest on a personal injury award, you may assume that the daily accrual rate will always remain the same. However, this is not necessarily the case, considering that the defendant has a right to appeal the jury’s verdict. Sometimes, the award is reduced on appeal, but it can also be increased. This is important, as it will also increase the amount of interest that’s earned on the judgment until you receive payment.
It’s worth noting that California has the highest statutory interest rate in the U.S, followed by New York, which has a 9% rate of interest on personal injury judgments. With that in mind, you want to fight for every penny you are due from an accident injury claim. The attorneys of Normandie have decades of experience in car accidents, slip and falls, defective products injuries, and other cases of negligence by an individual or entity. For any questions regarding your rights and legal options, contact us 24 hours a day, 7 days a week.
What Happens if the Defendant Doesn’t Pay the Judgment?
If payment is not issued promptly by the party that injured you, a judgment can be entered by your attorney, which is signed by a judge and entered by the court clerk.
A judgment basically outlines the jury’s verdict and the amount that is owed to you by the defendant. Once it’s filed with the court, verdict enforcement can begin in order to collect the funds that were awarded to you. Interest will start to accrue on the date of entry by the county clerk, and the judgment will continue to earn interest until it’s fully paid, along with the accrued interest.
One thing to note is the timing of when your lawyer enters a judgment with the court. This is usually done right after a verdict, as there is a good chance that the other side will file an appeal in order to avoid paying you. By filing a judgement immediately, your attorney will lock in the interest rate of 10% right from the start on your loss of income and other applicable damages. Additionally, it allows for enforcement actions by the court if the defendant continues to avoid making the payment.
Help from an Experienced Personal Injury Lawyer
An accident claim is usually the first experience people have with the legal system, and it’s easy to be confused and overwhelmed by all the requirements. A lawyer is your best ally during this time, especially if you have a complex situation with severe injuries or liability by multiple parties. No matter what, there’s always the possibility that a settlement cannot be negotiated with the other side. In that case, you will need to argue your case in front of a judge and jury.
Our legal team has decades of experience in personal injury lawsuits, and we know what it takes to secure the highest possible settlement on behalf of an accident victim. We are prepared for every stage in your case, from negotiating a settlement to representing you in a jury verdict appeal, if necessary.
Though many of our clients are just starting out on the journey to recovery, some of them have come to us from other law firms. If you are worried about the fate of your case and need advice from another attorney, please reach out to us for a free second opinion.
Zero Fee Guarantee
Wherever you are in the legal process, you will receive free legal services under the Zero Fee Guarantee. We work on a contingency basis, meaning there is no out of pocket cost to you as the client. Instead, legal fees are charged to the defendant, which is paid to us as a part of your settlement check. In essence, we don’t make a penny unless you receive compensation from a successful lawsuit.
To arrange for a free consultation at your earliest convenience, contact the offices of Normandie Law Firm.
