USA Law and Practice Contributed by: Courtney Scobie and Jack Edwards, Ajamie LLP
Pre-Judgment Interest Pre-judgment interest is interest that accrues on the amount of damages from the time the cause of action arose until the date of the judgment. The availability and calculation of pre-judgment interest are typically governed by state law, and the rules can vary from one state to another. Post-Judgment Interest Post-judgment interest is interest that accrues on the amount of the judgment from the date the judgment is entered until the judgment is paid. Post-judgment interest may be governed by federal law – specifically, 28 USC Section 1961, which sets the interest rate for federal judgments. The rate is based on the weekly average one-year constant maturity Treasury yield and is updated periodically by the US Department of the Treasury. Some exclusions do apply, such as Internal Revenue Service tax cases. State law may apply to post-judgment interest in cas- es filed in state courts.. 9.4 Enforcement Mechanisms of a Domestic Judgment Enforcing a domestic judgment in the USA involves various mechanisms, primarily at the state level – given that the enforcement of judgments is primarily governed by state law. Some common mechanisms for enforcing a domestic judgment include a writ of execution, garnishment of bank accounts or wages, or liens on property. 9.5 Enforcement of a Judgment From a Foreign Country Enforcing a judgment from a foreign country in the USA involves a different process to that for enforc- ing domestic judgments. The primary mechanism for enforcing foreign judgments in the USA is based on the principles of comity and recognition of foreign judgments. The following is a general overview of the procedure. • File a lawsuit to enforce the foreign judgment – the first step is to file a lawsuit in a US court, seeking to enforce the foreign judgment. • Provide the US court with required documenta- tion – the next step is to provide the US court with
fil a specific contractual obligation as outlined in the original agreement and often involves real estate and unique items. • Rescission – rescission allows the parties to a con- tract to cancel or void the contract, returning both parties to their pre-contractual positions. • Declaratory judgment – a declaratory judgment is a court’s formal declaration of the rights, duties, or obligations of the parties involved in a legal dis- pute. It clarifies the legal relationship between the parties without awarding monetary damages. • Restitution – restitution seeks to restore any benefits or property wrongfully obtained by the defendant to the rightful owner. It is often used in cases involving unjust enrichment. • Attorney’s fees and costs – in some cases, a suc- cessful litigant may be entitled to recover attorney’s fees and litigation costs from the losing party. This is typically provided for in statutes and contracts or Punitive damages, also known as exemplary dam- ages, are intended to punish the defendant for wilful misconduct, gross negligence, or malicious behaviour. The primary purpose is to deter the defendant and others from engaging in similar behaviour. The avail- ability of punitive damages varies by state and by the nature of the case. Some states have imposed lim- its on punitive damages, whereas others allow them without specific caps. The US Supreme Court has ruled that punitive damages must be reasonable and proportional to the harm caused. In some cases, statutes provide for specific amounts of damages for particular violations. By way of exam- ple, copyright infringement cases may involve statu- tory damages under federal copyright law. Many types of cases, such as patent cases and antitrust matters, have their own statutory damages that should be reviewed by counsel prior to filing such matters. 9.3 Pre-Judgment and Post-Judgment Interest through common-law principles. 9.2 Rules Regarding Damages In the USA, parties may be entitled to collect both pre-judgment and post-judgment interest. However, the rules and parameters for each type of interest can vary based on federal or state law.
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