More Interest Payments on Awards Are Urged to Speed Up Court Cases
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Seeking to crack down on defense lawyers who stall personal injury cases in the courts, New York’s Chief Judge proposed today that their clients pay retroactive interest on lawsuit awards in cases that drag on for more than a year. Chief Judge Judith S. Kaye, in another proposal aimed at speeding cases through the courts, also recommended reducing the number of jurors a lawyer can bar from a criminal case. Both changes would require action by the Legislature and the Governor, and the idea of retroactive interest payments has some powerful enemies, particularly in the business world. But Judge Kaye said the interest proposal would force defendants’ lawyers to settle cases or allow them to come to trial more quickly, saving the courts time and money. Her plan would force defendants to pay interest on judgments and settlements dating from one year after the suit is filed. Many personal injury cases often last several years before they are concluded. Under current law, a defendant is liable for interest payments dating only from the time of the settlement or a court judgment, usually at 9 percent a year. Under Judge Kaye’s proposal and at 9 percent interest compounded annually, a judgment would double if a case dragged on for nine years. ”Right now, it pays to drag a personal injury case slowly through the courts,” she said in her annual remarks on the state of the judiciary. ”Even if the ultimate intention is to settle, no interest accrues until the date of judgment.” More : query.nytimes.com |