Prejudgment interest is collectible in Arizona if there is an agreement between the parties providing for the payment of interest on the debt. It is interest awarded on a claim for a period of time before the court renders judgment in a lawsuit. Arizona law permits the collection of interest on liquidated claims. A liquidated claim is a claim which can be precisely determined by operation of law or by the terms and conditions of the agreement made by the parties.
In a liquidated tort claim, prejudgment interest may be awarded as a matter of right in the case. This is true even if there is uncertainty as to liability. It is important to check your specific state’s law regarding the legal rate of interest on a judgment. In Arizona, the interest on a judgment is defined by statute (unless specifically provided for by contract).
Many times, prejudgment interest accrues from the date of demand. Thus, it is wise for creditors to make demand for payment in writing which reflects the date of demand.
If you are a creditor interested in learning more about collecting prejudgment interest, contact the offices of Windtberg & Zdancewicz, PLC.
The attorneys at Windtberg & Zdancewicz, PLC, provide clients with experienced legal representation. We handle many types of business disputes on behalf of both creditors and debtors. Our attorneys handle cases from pre-litigation negotiations through litigation, obtaining and enforcing judgments to collect what our clients are owed. We are experienced in creditor’s rights including garnishments, charging orders, attachment, property execution, trustee’s sales, foreclosures, judgments, judgment collection, domestication of foreign judgments, and creditor’s issues in bankruptcy cases. If you need assistance, or are interested in learning more, please contact us at (480) 584-5660.