The Hiday Hotline ©

Accrual of Judgment Interest in Florida

By Robert D. Hiday

Pursuant to Florida Statute 55.03(1), the judgment interest rate remains the same on all judgments  until they are paid in full. See the historical interest rate chart to see how the rate has changed over the years.

Another related topic concerns whether the Courts will allow a creditor to use it's contractual rate in place of the statutory rate that is set as indicated above. In other words, if the statute for this year is at X% but you have a contract with the debtor that calls for 18% interest, can you have the Court enter a judgment that accrues interest at the higher rate? This controversy was settled. In the case of Whitehurst vs. Camp, 699 So. 2d 679; 1997 Fla. LEXIS 1355; 22 Fla. L. Weekly S 527 (Fla 1997). In that case the Florida Supreme Court held that the note held by the creditor merges with the judgment and therefore cannot be the controlling instrument. In other words, the interest rate to be used on the judgment is that set by Chapter 55, not the promissory note. The only exception to this rule is where the note has a specific rate of interest that is to be applied in the event a judgment is entered. In that case, where the parties agreed in advance to the judgment interest rate, the Court would allow the higher rate.

If you wish more information about the issues above, feel free to contact us.

Historical Judgment Interest Rates

YEAR	PER ANNUM
2009	8%
2008	11%
2007	11%
2006	9%
2005	7%
2004	7%
2003	6%
2002	9%
2001	11%
2000	10%
1999	10%
1998	10%
1997	10%
1996	10%
1995	8%

BACK TO THE HOT LINE