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HD 1400

An Act relative to prejudgment interest rates

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

HD 1400: An Act relative to prejudgment interest rates OverviewBill Number: HD 1400 Title: An Act relative to prejudgment interest ratesStatus: Proposed billIntroduced: November 2

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Bill Summary · HD 1400

HD 1400: An Act relative to prejudgment interest rates

Overview

Bill Number: HD 1400
Title: An Act relative to prejudgment interest rates
Status: Proposed bill
Introduced: November 29, 2025

Purpose and Intent

This bill aims to update the state's laws regarding prejudgment interest rates in civil court cases. The current prejudgment interest rate of 12% per annum has remained unchanged for over 30 years, and proponents argue it no longer reflects modern economic conditions. The goal is to establish a more flexible, market-based approach to setting prejudgment interest rates that better aligns with current interest rate environments.

Key Provisions

  • Repeals the current fixed 12% prejudgment interest rate
  • Requires courts to set prejudgment interest rates based on the one-year constant maturity Treasury yield at the time of the judgment
  • Allows the prejudgment interest rate to be adjusted annually to track changes in the one-year Treasury yield
  • Applies the new interest rate calculation to all civil cases filed after the effective date of the legislation

Affected Parties and Impacts

This bill would impact all parties involved in civil lawsuits in the state, including:

  • Plaintiffs: Receive prejudgment interest at a rate more closely aligned with current market conditions
  • Defendants: Pay prejudgment interest at a rate that fluctuates with economic factors rather than a fixed 12%
  • Courts: Must calculate and apply the appropriate prejudgment interest rate for each case based on the Treasury yield

The changes are expected to result in prejudgment interest awards that more accurately reflect the time value of money, providing fairer compensation to prevailing plaintiffs while also potentially reducing the financial burden on defendants.

Procedural and Timeline Considerations

HD 1400 was introduced in the state legislature on November 29, 2025 and has been referred to the Joint Committee on the Judiciary for initial review and public hearings. If reported favorably by the committee, the bill will then proceed to a full vote in both the House and Senate. Given the relatively non-controversial nature of the proposed changes, the bill is expected to advance through the legislative process over the next few months, with the goal of enactment by the summer of 2026 prior to the start of the next fiscal year.

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

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