Pre-Judgment and Post-Judgment Interest in Georgia Personal Injury Cases

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A personal injury case that takes years to resolve raises two separate interest questions: whether interest runs on a judgment after it is entered, and whether it can run on the claim before then. Georgia answers the first automatically and the second only if the claimant takes a specific step. Both rates are tied to the prime rate the Federal Reserve publishes, so the figure depends on the date the statute names.

Interest After Judgment

“All judgments in this state shall bear annual interest upon the principal amount recovered at a rate equal to the prime rate as published by the Board of Governors of the Federal Reserve System, as published in statistical release H. 15 or any publication that may supersede it, on the day the judgment is entered plus 3 percent” (OCGA 7-4-12(a)). The interest “shall apply automatically to all judgments in this state and the interest shall be collectable as a part of each judgment whether or not the judgment specifically reflects the entitlement to postjudgment interest” (OCGA 7-4-12(c)). The section applies “to all civil actions filed on or after July 1, 2003” (OCGA 7-4-12(d)). The rate for a particular judgment is therefore fixed by the prime rate published on the day of entry, plus 3 percentage points.

For example, imagine a judgment of $500,000 entered on a day when the published prime rate is 7 percent. The annual rate is 10 percent, and interest on the principal amount recovered is $50,000 for a year.

Interest Before Judgment on Unliquidated Damages

For a tort claim, the statute known as the “Unliquidated Damages Interest Act” (OCGA 51-12-14(e)) provides a path to interest before judgment. A claimant must give “written notice by registered or certified mail or statutory overnight delivery” of a demand for an amount of unliquidated damages, and the notice must “specify that it is being given pursuant to this Code section” (OCGA 51-12-14(a), (b)). If the person against whom the claim is made “fails to pay such amount within 30 days from the mailing or delivering of the notice,” the claimant “shall be entitled to receive interest on the amount demanded if, upon trial of the case in which the claim is made, the judgment is for an amount not less than the amount demanded” (OCGA 51-12-14(a)).

The defendant can cut the interest off. If, after the 30 days and before the claimant withdraws the demand, the defendant gives written notice of an offer to pay the demand plus interest through that date, and the claimant does not accept within 30 days, the claimant “shall not be entitled to receive interest on the amount of the demand after the thirtieth day following the date on which the notice of the offer is mailed or delivered” (OCGA 51-12-14(a)).

The rate is “the prime rate as published by the Board of Governors of the Federal Reserve System, as published in statistical release H. 15 or any publication that may supersede it, on the thirtieth day following the date of the mailing of the last written notice plus 3 percent,” running “from the thirtieth day following the date of the mailing or delivering of the written notice until the date of judgment” (OCGA 51-12-14(c)). That subsection applies to civil actions filed on or after July 1, 2003. The jury does not hear about it: “Evidence or discussion of interest on liquidated damages, as well as evidence of the offer, shall not be submitted to the jury,” and interest is made part of the judgment on proof, satisfactory to the court, that the statute was complied with and that the verdict “is equal to or exceeds the amount claimed in the notice” (OCGA 51-12-14(d)).

For example, imagine a claimant who mails a compliant demand for $200,000 on March 1, 2027. The thirtieth day after mailing is March 31, 2027. If the demand is not paid and the judgment at trial is for $200,000 or more, interest runs on the amount demanded from March 31, 2027 until the date of judgment at the rate the statute sets. The entitlement in subsection (a) depends on a judgment of at least the amount demanded.

Interest on Liquidated Demands

Liquidated demands are treated separately. “All liquidated demands, where by agreement or otherwise the sum to be paid is fixed or certain, bear interest from the time the party shall become liable and bound to pay them” (OCGA 7-4-15). Where no rate is set by written contract, “[t]he legal rate of interest shall be 7 percent per annum simple interest” (OCGA 7-4-2(a)(1)(A)).

Frequently Asked Questions

What rate applies to a judgment on a contract that sets its own interest rate?
“If the judgment is rendered on a written contract or obligation providing for interest at a specified rate, the judgment shall bear interest at the rate specified in the contract or obligation” (OCGA 7-4-12(b)).

Does pre-judgment interest apply when a judge, not a jury, decides the case?
Yes. Interest is made part of the judgment on proof that the statute was complied with and that “the verdict of the jury or the award by the judge trying the case without a jury is equal to or exceeds the amount claimed in the notice” (OCGA 51-12-14(d)).

Does the defendant’s offer stop interest even if the verdict is larger?
Yes. Once an unaccepted offer cuts interest off, the claimant receives no interest after the thirtieth day following the offer “even if, upon trial of the case in which the claim is made, the judgment is for an amount not less than the sum demanded pursuant to this Code section” (OCGA 51-12-14(a)).

When does interest start on a liquidated amount payable on demand?
From the time of the demand. A liquidated demand, “if payable on demand,” bears interest “from the time of the demand” (OCGA 7-4-15).

  • OCGA 7-4-12(a), (b), (c), (d)
  • OCGA 51-12-14(a), (b), (c), (d), (e)
  • OCGA 7-4-15; OCGA 7-4-2(a)(1)(A)

Disclaimer

This article provides general information about interest on personal injury judgments and claims under Georgia law. It is not legal advice and does not create an attorney-client relationship. Whether and how interest applies depends on the notices sent, the judgment entered, and the specific facts. A person with a pending claim should consult a licensed Georgia attorney promptly about the particular situation.

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