Key Takeaway
Learn whether post-judgment interest in New York no-fault cases is calculated at 24% annually (CPLR 5004) or 9% annually, based on recent appellate decisions.
B.Z. Chiropractic, P.C. v Allstate Ins. Co., 2017 NY Slip Op 51091(U)(App. Term 2d Dept. 2017)
“A money judgment bears interest from the date of its entry (see CPLR 5003), and, generally, the interest accrues until the judgment is paid (see Matter of Matra Bldg. Corp. v [*2]Kucker, 19 AD3d 496 ; Martin v Tafflock, 166 AD2d 635 ). “Postjudgment interest is awarded as a penalty for the delayed payment of a judgment” (ERHAL Holding Corp. v Rusin, 252 AD2d 473, 474 ). Contrary to defendant’s assertion, there is no evidence of actions or conduct by plaintiff which prevented defendant from paying the judgment (see ERHAL Holding Corp., 252 AD2d at 474_; cf. Danielowich v PBL Dev._, 292 AD2d 414 ). Since plaintiff, as the prevailing party, was not required to make a demand for the money (see e.g. Feldman v Brodsky, 12 AD2d 347, 351 ; Weinstein-Korn-Miller, NY Civ Prac ¶ 5003.01 ) and did not cause the delay in paying the judgment, the Civil Court erred in tolling the accrual of interest on the judgment. However, defendant demonstrated, through the submission of checks to plaintiff, which plaintiff had endorsed “without prejudice,” that defendant had partially paid the judgment and is, therefore, entitled to the entry of a partial satisfaction of judgment in the amount of $22,999.70 (see CPLR 5021 ). We note that, contrary to plaintiff’s position, postjudgment interest should be calculated pursuant to CPLR 5004 and not at the two percent per month rate provided for in 11 NYCRR 65-3.9 (a)”
This case appears to conflict with: Corona Hgts. Med., P.C. v Liberty Mut. Ins. Co., 32 Misc. 3d 8, 10 (App. Term 2d Dept. 2011)(“It is noted that plaintiff is not entitled to interest pursuant to the Civil Practice Law and Rules, since Insurance Law § 5106 (a) and the regulations promulgated thereunder supersede the provisions for interest contained in the CPLR”
Also, this case clashed with an older Second Department case (FYI: someone brought this one to my attention): Matter of McMillan v. UnionAmerican Reinsurance Company, 70 AD2d 659 (2d Dept. 1979)(“Furthermore, the judgment properly provided that interest on the award continue to accrue at the rate of 2% per month “pursuant to statute”, rather than the legal rate of 6% Per annum specified in CPLR 5004. CPLR 5004 expressly provides for the application of interest rates other than the legal rate of 6% per annum where otherwise provided by statute. In the instance case, the interest rate of 2% per month applied by Special Term is prescribed by subdivision 1 of section 675 of the Insurance Law (see, also, 11 NYCRR 65.6))”
I can understand the frustration that the court had about allowing old judgments to collect a large interest percentage (then compounded). Clearly, the judgment clerk’s office should not be giving a better rate of return than what is obtained through the best investor out there. Yet, the statute seems pretty clear and the Appellate Division, I think, hit this one on the head 38 years ago.
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Legal Update (February 2026): Since this 2017 post, Insurance Law § 5106 and related no-fault regulations under 11 NYCRR Parts 65-3 and 65.6 may have been amended, potentially affecting post-judgment interest calculations in no-fault cases. Additionally, CPLR provisions governing judgment interest rates and procedures may have been modified. Practitioners should verify current statutory interest rates and regulatory provisions before calculating post-judgment interest in no-fault matters.
