1. What is Pre Judgment Interest in Florida?

Pre-judgment interest in Florida is the interest that accrues on a monetary judgment from the date the cause of action accrued until the date of the final judgment. It compensates the plaintiff for the loss of use of the money during the litigation period.

2. How Does the Calculator Work?

The calculator uses the Florida pre-judgment interest formula:

Where:

• \( Principal \) — The original amount of money ($)
• \( Rate \) — The annual interest rate (in decimal form)
• \( Days \) — The number of days interest accrues

Explanation: This formula calculates simple interest based on the principal amount, annual rate, and the specific number of days the interest applies.

3. Importance of Pre Judgment Interest Calculation

Details: Accurate calculation of pre-judgment interest is crucial in legal proceedings to ensure proper compensation for the time value of money. Florida statutes specify how and when pre-judgment interest applies to various types of cases.

4. Using the Calculator

Tips: Enter the principal amount in dollars, the 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 Florida?
A: Florida Statute § 55.03 governs pre-judgment interest, allowing it to accrue from the date the payment was due or the cause of action accrued.

Q2: How is the interest rate determined?
A: The rate is set by the Florida Chief Financial Officer and is adjusted annually. It's typically based on the average rate of interest on judgments.

Q3: Does pre-judgment interest apply to all cases?
A: No, it generally applies to cases involving liquidated damages (amounts certain or determinable) but not to unliquidated claims.

Q4: Are there any caps on pre-judgment interest in Florida?
A: There are no statutory caps, but the rate is set by the state and changes annually. Courts have discretion in certain circumstances.

Q5: How are partial payments handled?
A: Partial payments typically reduce the principal balance, and interest continues to accrue on the remaining balance.