Interest rates reflect the time value of money, and as the Court of Appeals held in Love v. State of New York, 78 N.Y.2d 540 (1991), the award of damages includes interest because it is intended to make the plaintiff whole. Until the defendant pays the damages, he or she is said to be “holding funds that belong to the plaintiff.” Id. at 544.

This rationale implies an entitlement to interest from accrual of the cause of action at market rates, but this is not the New York rule. Market interest rates currently are pretty low (the federal funds rate is only 1 percent), and the longstanding 9 percent rate provided by CPLR 5004 may reflect a policy to incentivize prompt payment of judgments. Regardless of the reason for the 9 percent rate, however, the particulars of interest calculations for civil damages in New York are matters of high consequence.

The calculation rules are provided in CPLR Article 50, see Manufacturers & Traders Trust Co. v. Reliance Ins. Co., 8 N.Y.3d 583, 588 (2007), which generally covers judgments. The basics are stated in §§5001 through 5004 and for the most part are well-settled. Professor Siegel has succinctly described the calculation points—from the time of the cause of action, through the decision, the judgment and finally up to payment. See Siegel, New York Practice (Fifth Edition), §§ 411, 412.