PERU Law and Practice Contributed by: Renzo Salvatore Monroy Pino, Roberto Shimabukuro Miyasato, Anibal Jong Urtecho Gómez and Alexander Montenegro, Monroy & Shima Abogados
9.3 Pre-Judgment and Post-Judgment Interest In Peru, pre-judgment interest is available to success- ful litigants and begins accruing from the date of harm or breach (for tort or contract claims) or from formal payment demand (for other obligations). For monetary obligations, interest is calculated using the legal rate established by the Central Reserve Bank, unless par- ties have contractually agreed to a different rate. This compensatory interest accounts for the time value of money during the period the plaintiff was deprived of rightfully owed funds. Post-judgment interest automatically begins accru- ing from the date the judgment becomes final until full payment occurs. For judgments in soles, interest uses the legal rate for judicial obligations, while foreign currency judgments accrue interest at the applicable currency rate. Interest cannot exceed legal limits, with usurious rates being reduced to the maximum legal rate. Calculation typically applies to the principal sum only, avoiding compound interest except in specific commercial cases. Courts have discretion to adjust interest for extreme delay or process abuse, and judg- ments specify the applicable interest method by ref- erencing the Central Reserve Bank’s published rate. 9.4 Enforcement Mechanisms of a Domestic Judgment In Peru, once a judgment becomes final, the success- ful party can initiate enforcement if the losing party fails to comply voluntarily. The process begins with a formal compliance demand, giving the judgment debtor three to five days to fulfil the obligation or raise limited defences. If compliance does not occur, the court orders specific enforcement measures based on the obligation type. For monetary judgments, enforcement includes: attachment and auction of the debtor’s assets; gar- nishment of bank accounts or wages; and recording liens on real property. For judgments requiring spe- cific actions, courts can authorise direct enforce- ment by judicial officers, impose progressive coer- cive fines, or order substitute performance by third parties at the debtor’s expense. In extreme cases of defiance, imprisonment for up to 30 days may be ordered, though this is applied restrictively. Through-
damages for non-economic harms such as emotional distress, pain and suffering, or reputational damage. Beyond monetary awards, Peruvian courts can grant specific performance, compelling fulfilment of con- tractual or legal obligations; declaratory judgments establishing legal rights without ordering specific actions; permanent injunctions prohibiting behaviours or requiring actions to prevent future harm; restitution of property in property disputes; public rectification or apologies for personal rights violations; and nullifica- tion of government decisions with corrective action orders in administrative cases. This diverse array of remedies allows courts to tailor relief to specific cir- cumstances, ensuring effective protection of prevail- ing parties’ rights. 9.2 Rules Regarding Damages In Peru, damages are primarily compensatory rather than punitive in nature. The civil liability system aims to restore injured parties to the position they would have occupied in the absence of the wrongful act. Compensatory damages include both material dam- ages (actual losses and lost profits) and moral dam- ages (emotional suffering and non-economic harms). Unlike some common law jurisdictions, punitive dam- ages are generally unavailable, as the focus remains on compensation rather than punishment or deter- rence. Peruvian law establishes no fixed statutory limits on damages, with courts determining appropriate com- pensation based on evidence of actual harm. Howev- er, several factors may limit awards: courts can reduce compensation for contributory negligence; the Civil Code allows judges to moderate excessive awards considering circumstances, including the defendant’s economic situation and degree of fault; and in con- tractual disputes, liquidated damages clauses may set predetermined compensation, though courts can adjust if manifestly excessive. This flexible approach allows the tailoring of damages to specific circum- stances while ensuring compensation remains rea- sonable and proportional.
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