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SD 537

An Act relative to prejudgment interest rates

194th Legislature (2025-2026) Introduced by Jason Lewis

Massachusetts bill adjusts prejudgment interest rates on civil damages, affecting settlement incentives and total compensation amounts for injury and contract dispute cases.

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WeVote Research Nonpartisan
Bill Summary · SD 537

Legislative bill overview

SD 537 modifies the prejudgment interest rate applied to civil lawsuits in Massachusetts. The bill adjusts how much interest accrues on awarded damages from the time of injury or loss until the judgment is actually rendered. This affects compensation calculations across personal injury, contract disputes, and other civil cases.

Why is this important

Prejudgment interest rates directly impact the total amount plaintiffs receive and influence settlement negotiations and litigation strategy. Changes to these rates affect access to justice by altering the financial incentives for defendants to settle quickly versus proceed to trial, and impact insurance costs and business liability exposure.

Potential points of contention

  • Defendant vs. plaintiff impact: Higher rates favor plaintiffs by increasing pressure to settle; lower rates benefit defendants and may discourage litigation
  • Economic effects: Increased prejudgment interest may raise insurance premiums and business costs, while decreased rates reduce compensation for injury victims during litigation delays
  • Rate-setting mechanism: Whether rates should be fixed by statute, tied to market indices (like prime rate or Treasury rates), or adjusted periodically creates ongoing policy questions

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

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