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HomeCivil CodeDiv. 4Pt. 1Ch. 1Art. 2§ 3287 Prejudgment Interest Recovery

§ 3287 Prejudgment Interest Recovery

Civil Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 3287 Prejudgment Interest Recovery

Key Takeaways

  • •If someone owes you money and the amount is clear (or can be calculated), you can also get extra money (interest) from the day they were supposed to pay you.
  • •This rule applies to everyone, even the government or cities.
  • •If the amount owed isn’t clear at first (like in some contract fights), a judge can decide to add interest from an earlier date, but not before the lawsuit started.
  • •For lawsuits about taxes or fees against the government, the interest rate is based on a special number (U.S. Treasury yield), but it can’t go over 7% per year.

Example

You lent your friend $100, and they were supposed to pay you back in a year. They didn’t pay you on time, and you sued them.

The court says your friend must pay you the $100 plus extra money (interest) for every day they were late, starting from the day they were supposed to pay you.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 3287 Prejudgment Interest Recovery

(a) A person who is entitled to recover damages certain, or capable of being made certain by calculation, and the right to recover which is vested in the person upon a particular day, is entitled also to recover interest thereon from that day, except when the debtor is prevented by law, or by the act of the creditor from paying the debt. This section is applicable to recovery of damages and interest from any debtor, including the state or any county, city, city and county, municipal corporation, public district, public agency, or any political subdivision of the state. (b) Every person who is entitled under any judgment to receive damages based upon a cause of action in contract where the claim was unliquidated, may also recover interest thereon from a date prior to the entry of judgment as the court may, in its discretion, fix, but in no event earlier than the date the action was filed. (c) Unless another statute provides a different interest rate, in a tax or fee claim against a public entity that results in a judgment against the public entity, interest shall accrue at a rate equal to the weekly average one year constant maturity United States Treasury yield, but shall not exceed 7 percent per annum. That rate shall control until the judgment becomes enforceable under Section 965.5 or 970.1 of the Government Code, at which time interest shall accrue at an annual rate equal to the weekly average one year constant maturity United States Treasury yield at the time of the judgment plus 2 percent, but shall not exceed 7 percent per annum. (Amended by Stats. 2013, Ch. 424, Sec. 1. (AB 748) Effective January 1, 2014.)

Last verified: January 21, 2026

Key Terms

damages certaininterestunliquidatedjudgmentpublic entity

Related Statutes

  • § 1045 Nontransferable Mere Possibilities
  • § 3291 Prejudgment Interest In Injury Cases
  • § 1044 Transferable Property Exceptions
  • § 1046 Transferable Reentry Rights
  • § 1047 Adverse Possession Transfers

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Civil Code. Section 3287.
View Official Source