Tuesday, January 4, 2011

Is this the end of post-judgment interest in Virginia?

Post judgment interest is not just authorized but required under Va. Code § 8.01-382.  Although there are a handful of ways to calculate the rate of interest under the statute, if there is no other basis to calculate the interest, the judgment rate of interest applies.  Most civil attorneys know that the judgment rate of interest is 6%.  Many attorneys likely have not researched where that designation comes from.  Thankfully once an attorney finds their way to Va. Code § 8.01-382 the attorney finds that the judgment rate of interest is contained in another referenced statute Va. Code § 8.01-330.54.  

The generally assembly felt Va. Code § 8.01-330.54 was important enough to amend as of July 1, 2010.  Judges do not have the discretion to deviate from Va. Code § 8.01-382’s requirements for post judgment interest.

One will note that Va. Code § 8.01-330.54 was repealed as of October 1, 2010.  It was not amended, it was not reenacted in the same location.  

Apparently pursuant to Senate Bill 295 large sections of the Banking and Finance section of the Virginia Code were repealed and reenacted in different places.  What was Va. Code § 8.01-330.54 has been largely reenacted as Va. Code § 6.2-302.  Unfortunately in Senate Bill 295, Va. Code § 8.01-382 has not been updated.  Judges appear to be required to grant post judgment interest at a rate pursuant to a nonexistent statute.  

Not to worry, Va. Code § 6.2-302 appears to provide enough cover for Plaintiffs to still get the 6% judgment rate of interest.  I am sure few judges will want to peek behind the curtain to determine if they really had statutory authority to set the post judgment rate of interest.

No comments:

Post a Comment