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H 1795

An Act relative to prejudgment interest rates

194th Legislature (2025-2026) Introduced by Kim Ferguson and 3 co-sponsors

H 1795 adjusts Massachusetts prejudgment interest rates in civil lawsuits, affecting how much interest accrues on judgments between filing and final verdict.

Accompanied a study order, see H5281 (under House Rule 27)
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Bill Summary · H 1795

Legislative bill overview

H 1795 modifies the statutory rate of prejudgment interest in Massachusetts civil lawsuits. The bill adjusts how much interest accumulates on court judgments from the time a lawsuit is filed until final judgment is awarded. This affects both plaintiffs seeking compensation and defendants calculating potential liability in civil disputes.

Why is this important

Prejudgment interest rates directly impact the financial outcome of lawsuits, influencing settlement negotiations, litigation costs, and access to justice. Changes to these rates affect businesses, individuals, insurance companies, and the overall competitiveness of Massachusetts courts—potentially influencing where parties choose to litigate and how much cases ultimately cost.

Potential points of contention

  • Plaintiff vs. defendant impact: Higher prejudgment interest rates benefit plaintiffs by increasing compensation for delayed justice, while lower rates reduce defendants' exposure to accumulated costs
  • Economic effects: Increased interest obligations may incentivize faster settlements or discourage litigation, potentially affecting access to courts for those seeking damages
  • Inflation adjustment: Whether the rate should be fixed or tied to economic indicators (inflation, federal rates) to remain relevant over time

Compiled from official sources — confirm details with the bill’s official record.

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