1. What is Pre Judgment Interest?

Pre judgment interest is the interest that accrues on a monetary award from the time the cause of action arises until the date of judgment. In British Columbia, it compensates plaintiffs for the time value of money lost during litigation.

2. How Does the Calculator Work?

The calculator uses the pre judgment interest formula:

Where:

• \( Principal \) — The original amount of money ($)
• \( Rate \) — The interest rate (expressed as a decimal)
• \( Days \) — The number of days interest accrues

Explanation: This formula calculates simple interest based on the principal amount, interest rate, and time period in days, converting days to a fraction of a year (365 days).

3. Importance of Pre Judgment Interest Calculation

Details: Accurate pre judgment interest calculation is crucial for fair compensation in legal proceedings, ensuring plaintiffs receive the full value of their award by accounting for the time value of money during the litigation period.

4. Using the Calculator

Tips: Enter the principal amount in dollars, interest rate as a decimal (e.g., 0.05 for 5%), and the number of days. All values must be valid positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the legal basis for pre judgment interest in BC?
A: Pre judgment interest in British Columbia is governed by the Court Order Interest Act, which provides for interest on pecuniary judgments from the date the cause of action arose to the date of judgment.

Q2: How is the interest rate determined?
A: The interest rate is set by regulation and may vary over time. It's important to use the applicable rate for the specific time period being calculated.

Q3: Are there any exceptions to pre judgment interest?
A: Yes, the court has discretion to disallow interest or award a different rate in certain circumstances, such as when the plaintiff has delayed the proceedings.

Q4: How are partial payments handled?
A: Partial payments typically reduce the principal amount from the date of payment onward, which may require分段计算 of interest.

Q5: Does this calculator account for compounding interest?
A: No, this calculator uses simple interest calculation as typically applied to pre judgment interest calculations in BC legal proceedings.