Judge Sue L. Robinson: Post-Judgment Interest Applies to Prejudgment Interest Component of Judgment

Should a defendant have to pay interest on interest? Judge Robinson, in Trueposition Inc. v Andrew Corporation, answered yes. C.A. No. 05-747-SLR, Memo. Order (D. Del. Jan. 28, 2009). The Court ordered that under Third Circuit case law and 28 U.S.C. 1961, post-judgment interest should be calculated on the judgment plus prejudgment interest. Id. at 2. The imposition of this additional interest from a policy standpoint, helps to avoid rewarding defendants for delaying litigation. Id. The post-judgment interest award, however, does not begin to accrue until the date of the Court’s order setting damages, not the entry of judgment following the jury verdict. Id. at 3. Finally, the Court declined to award post-judgment interest on the enhanced damages award. Id. at 3-4. Unlike prejudgment interest which is compounded quarterly and at the prime rate, post-judgment interest is calculated at a rate equal to the “weekly average 1-year constant maturity Treasury yield, as published by the Board of Governors of the Federal Reserve System for the calendar week preceding.” Id. at 4.

Trueposition Inc. v Andrew Corporation, C.A. No. 05-747-SLR, Memo. Order (D. Del. Jan. 28, 2009).

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