An Act relative to prejudgment interest rates

HD 1400 changes Massachusetts law to replace the fixed 12% prejudgment interest rate with a variable rate based on the weekly average one-year Treasury yield published by the Federal Reserve. This affects plaintiffs and defendants in civil lawsuits where prejudgment interest is awarded before a court judgment is issued. The bill modifies sections of Chapter 231 of the General Laws to calculate interest using the Treasury yield for the week before the judgment date, rather than the current fixed rate. The change directly impacts the amount of interest accrued in eligible cases, aligning it with current federal interest rates. The bill does not alter the scope of cases eligible for prejudgment interest, only the method for calculating the rate.