Tennessee law changed several years ago to provide that a new post-judgment interest rate is computed every six months. Tenn. Code Ann. § 47-14-121. The rate is two percent below the formula rate published by the Tennessee Department of Financial Institutions and is officially published on the website of the Tennessee Administrative Office of the Courts.
A 2022 decision of the Tennessee Court of Appeals cleared up controversy about whether the interest rate changed every six months or whether the interest rate in effect at the time the judgment was entered remained in effect until the judgment was paid in full. The Court said:
We hold that Tennessee Code Annotated § 47-14-121 (a) requires a trial court to calculate post-judgment interest using only the statutory interest rate in effect when the judgment is entered. The applicable post-judgment interest rate does not fluctuate when applied to a particular judgment; instead, it remains the same for the entire period of time following entry of the judgment awarding damages until the judgment amount is paid.
Coffey v. Coffey, No. E2021-00433-COA-R3-CV, 2022 WL 1085039, at *4 (Tenn. Ct. App. April 11, 2022).
The new rate is effective January 1, 2024.
This blog is sponsored by John A. Day and the Law Offices of John Day, P.C. It is written for lawyers and assumes a level of prior knowledge about the topic discussed. The contents of this post should not be construed as legal advice and are not intended be a substitute for legal research on any issue. Indeed, this blog should be viewed as a starting point, not a destination, for legal research. Nonlawyers are cautioned that the law of civil procedure and evidence are complex subjects and it is almost always a mistake to represent one’s self in the circuit, chancery, or appellate courts of Tennessee and in Tennessee’s federal courts. No layperson should act or refrain from acting on the basis of any information included in, or accessible through, this blog without first seeking the appropriate legal advice on the particular facts and circumstances at issue from a Tennessee lawyer.
John may be reached at 615.742.4880 or jday@johndaylegal.com. The Law Offices of John Day, P.C. have office in Brentwood, Nashville, and Murfreesboro. Mail should be directed to 5141 Virginia Way, Suite 270, Brentwood, TN 37027.
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