Bill > S1988

This bill amends existing Massachusetts law regarding prejudgment interest, which is interest added to a court award from the time a lawsuit begins or a debt is incurred. Specifically, it updates Section 6B of Chapter 231 to change how the interest rate is calculated for personal injury and property damage cases, tying it to a formula involving 4 percent plus the average 1-year constant maturity Treasury yield from the previous December, as published by the Federal Reserve Board. It also modifies Section 6C to clarify that for contract disputes, interest is generally added from the date of breach or demand, or from the start of the lawsuit if that date is unknown, and that if a contract specifies an interest rate, that rate will be used; otherwise, the rate from Section 6B will apply, with a special provision for cases against the Commonwealth where interest will be calculated at the contract rate or a rate determined by Section 6I. Finally, it amends Section 60K to ensure that in malpractice and other professional negligence cases, prejudgment interest at the rate specified in Section 6B will be added from the commencement of the action, even if it increases the total award beyond any statutory liability limits.