One of the lesser-known but valuable aspects of a Delaware personal injury verdict is prejudgment interest. This award, often overlooked in case discussions, can add significant value to a judgment, especially in cases that take years to resolve.
The Detailed Answer
Prejudgment interest in Delaware is governed primarily by 6 Del. C. § 2301 and Delaware case law.
The Statutory Rate
6 Del. C. § 2301(a) sets the legal rate of interest at 5% above the Federal Reserve discount rate, calculated as of the relevant date. As discount rates change, so does the prejudgment interest rate. The rate is significantly higher than typical money market returns.
When Prejudgment Interest Begins
For personal injury claims, Delaware courts generally award prejudgment interest from the date the cause of action accrued (the date of injury) — though precedent varies. The Delaware Supreme Court in cases such as Brandywine Smyrna, Inc. v. Millennium Builders, LLC has provided guidance on accrual.
Calculation
Prejudgment interest is typically calculated as simple (not compounded) interest at the statutory rate from the accrual date to the date of judgment. Over a 2-3 year case, this can add 15-25% to the underlying damages.
Settlement Offer Effect
Delaware Superior Court Civil Rule 68 governs offers of judgment. If a defendant makes an offer that the plaintiff rejects, and the final judgment is not more favorable to the plaintiff, certain cost consequences may follow. The offer of judgment rule does not directly control prejudgment interest, but related precedent does.
Postjudgment Interest
After judgment is entered, postjudgment interest continues to accrue under § 2301 until the judgment is paid. Defendants who appeal pay this interest while the appeal is pending.
What This Means for Your Case
Prejudgment interest gives plaintiffs additional leverage and rewards patience. A defendant who refuses fair settlement faces a growing interest burden. Your attorney should calculate likely prejudgment interest when evaluating settlement offers. Related: post-verdict process, collateral source rule.
Related Questions
Q: Does prejudgment interest apply to settlements?
Settlements typically incorporate any prejudgment interest in the lump sum amount, since post-settlement no judgment is entered.
Q: Is the rate the same for all Delaware cases?
The statutory formula is the same, but the underlying Federal Reserve rate fluctuates. Calculation depends on the relevant period.
Q: Does prejudgment interest apply to non-economic damages?
Delaware case law has addressed this question; in many situations, prejudgment interest applies to the full judgment.
When to Talk to a Delaware Personal Injury Lawyer
Maximizing recovery requires accounting for prejudgment interest in settlement negotiations and trial strategy. Joseph M. Jachetti has experience handling Delaware personal injury damages calculations. Free consultations: (302) 984-1000.
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This page provides general legal information only. It is not legal advice and does not create an attorney-client relationship. For advice on your specific situation, contact Schuster Jachetti LLP.
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This page provides general legal information only. It is not legal advice and does not create an attorney-client relationship. For advice on your specific situation, contact Schuster Jachetti LLP.