Amends calculations of interest in civil actions a rate determined by average accepted auction price for last auction of 52 week U.S. treasury bills.
This bill impacts the legal framework surrounding civil judgments and modifications in the calculation of damages awarded to plaintiffs. By indexing interest rates to the U.S. treasury bills, it aims to provide a more predictable and possibly lower interest rate than the previously established flat rate. This change could influence the behavior of both claimants and defendants, as it may alter the financial calculations involved in settling civil claims.
S2196 amends the calculation of interest in civil actions within the state of Rhode Island, specifically addressing how interest is calculated on pecuniary damages. It mandates that for any civil judgment rendered, interest will be added at a rate of twelve percent (12%) per annum from the date the cause of action arose or the filing date of the civil action, based on the yield of the latest fifty-two-week U.S. treasury bills. This change is intended to ensure that the interest rates in court judgments align more closely with current financial benchmarks.
Notable points of contention surrounding S2196 could arise from concerns that setting interest rates based on treasury bill yields may not sufficiently compensate plaintiffs for the time value of their money, especially in cases where significant delays in resolution occur. Critics could argue that this may disadvantage claimants depending on the economic environment, as interest from treasury bills can fluctuate based on broader economic conditions. Additionally, stakeholders may debate the fairness of applying a uniform interest rate across varied types of civil actions.