An Act relative to prejudgment interest rates

This bill updates the formula used to calculate prejudgment interest rates in Massachusetts civil cases. Currently set at a fixed 12% per year, the interest rate would instead fluctuate based on the weekly average yield of one-year U.S. Treasury bonds published by the Federal Reserve. These changes directly affect plaintiffs and defendants involved in civil lawsuits where courts award interest for money owed before a final judgment is reached. By replacing the static rate with a market-based index, the legislation aims to align interest calculations with current economic conditions.