408.040. Interest on judgments, how regulated--prejudgment interest allowed when, procedure.
Interest on judgments, how regulated--prejudgment interest allowedwhen, procedure.
408.040. 1. In all nontort actions, interest shall be allowed on allmoney due upon any judgment or order of any court from the date judgment isentered by the trial court until satisfaction be made by payment, accord orsale of property; all such judgments and orders for money upon contractsbearing more than nine percent interest shall bear the same interest borneby such contracts, and all other judgments and orders for money shall bearnine percent per annum until satisfaction made as aforesaid.
2. Notwithstanding the provisions of subsection 1 of this section, intort actions, interest shall be allowed on all money due upon any judgmentor order of any court from the date of judgment is entered by the trialcourt until full satisfaction. All such judgments and orders for moneyshall bear a per annum interest rate equal to the intended Federal FundsRate, as established by the Federal Reserve Board, plus five percent, untilfull satisfaction is made. The judgment shall state the applicableinterest rate, which shall not vary once entered. In tort actions, if aclaimant has made a demand for payment of a claim or an offer of settlementof a claim, to the party, parties or their representatives, and to suchparty's liability insurer if known to the claimant, and the amount of thejudgment or order exceeds the demand for payment or offer of settlement,then prejudgment interest shall be awarded, calculated from a date ninetydays after the demand or offer was received, as shown by the certified mailreturn receipt, or from the date the demand or offer was rejected withoutcounter offer, whichever is earlier. In order to qualify as a demand oroffer pursuant to this section, such demand must:
(1) Be in writing and sent by certified mail return receiptrequested; and
(2) Be accompanied by an affidavit of the claimant describing thenature of the claim, the nature of any injuries claimed and a generalcomputation of any category of damages sought by the claimant withsupporting documentation, if any is reasonably available; and
(3) For wrongful death, personal injury, and bodily injury claims, beaccompanied by a list of the names and addresses of medical providers whohave provided treatment to the claimant or decedent for such injuries,copies of all reasonably available medical bills, a list of employers ifthe claimant is seeking damages for loss of wages or earning, and writtenauthorizations sufficient to allow the party, its representatives, andliability insurer if known to the claimant to obtain records from allemployers and medical care providers; and
(4) Reference this section and be left open for ninety days.
Unless the parties agree in writing to a longer period of time, if theclaimant fails to file a cause of action in circuit court prior to a dateone hundred twenty days after the demand or offer was received, then thecourt shall not award prejudgment interest to the claimant. If theclaimant is a minor or incompetent or deceased, the affidavit may be signedby any person who reasonably appears to be qualified to act as next friendor conservator or personal representative. If the claim is one forwrongful death, the affidavit may be signed by any person qualifiedpursuant to section 537.080, RSMo, to make claim for the death. Nothingcontained herein shall limit the right of a claimant, in actions other thantort actions, to recover prejudgment interest as otherwise provided by lawor contract.
3. In tort actions, a judgment for prejudgment interest awardedpursuant to this subsection should bear interest at a per annum interestrate equal to the intended Federal Funds Rate, as established by theFederal Reserve Board, plus three percent. The judgment shall state theapplicable interest rate, which shall not vary once entered.
(RSMo 1939 § 3228, A.L. 1979 H.B. 85, A.L. 1987 H.B. 700, A.L. 2005 H.B. 393)Prior revisions: 1929 § 2841; 1919 § 6493; 1909 § 7181
CROSS REFERENCES:
Applicability of statute changes to cases filed after August 28, 2005, RSMo 538.305
Interest as part of damages in action for conversion of goods, RSMo 537.520
Medical and health care providers, malpractice sections, 538.205 to 538.300; section 408.040 not applicable, RSMo 538.300
(1953) Where insurance companies which disclaimed liability to mortgagor, deposited proceeds of fire insurance policies in court during pendency of litigation for sole use of mortgagee and claimed right of subrogation to recover money back from mortgagor although he had paid premiums, they were liable for interest from date of judgment of circuit court in favor of mortgagor. City of New York Ins. Co. v. Stephens (Mo.), 260 S.W.2d 558.
(1957) Where allowance of claim by probate court was affirmed by circuit court but reversed and remanded on appeal and thereafter again allowed by judgment of circuit court, interest ran from date of last judgment of circuit court only. Minor v. Lillard (Mo.), 306 S.W.2d 541.
(1960) Where city deposited amount of judgment in condemnation action in court, it could enforce possession of the condemned land even though interest on judgment was not so deposited. Mayor, etc. of Liberty v. Boggess (A.), 332 S.W.2d 305.
(1964) Where prevailing plaintiff was required to remit part of judgment and a new judgment for reduced amount was entered as of the date of the original judgment, the plaintiff was entitled to interest on the amount of the new judgment from the date of the original judgment. Walton v. United States Steel Corp. (A.), 378 S.W.2d 240.
(1966) In suit for disbursement of funds paid into court, one interpleader is not entitled to interest for the period he was denied payment due to other interpleader's unsuccessful appeal. Winterton v. Van Zandt (A.), 397 S.W.2d 693.
(1994) Where there is an offer of settlement for one dollar less than insurance coverage, offer is not ambiguous for purposes of statute and where judgment entered exceeded offer, statute mandates award of prejudgment interest. Open-ended prayer for relief is sufficient for plaintiff to be entitled to recover prejudgment interest. Specific pleading for prejudgment interest is not necessary under statute. Gibson v. Musil, 844 F.Supp. 1579 (W.D. Mo.).
(1998) Acknowledgment or actual notice of settlement offer is insufficient to obtain prejudgment interest. Emery v. Wal-Mart Stores, Inc., 976 S.W.2d 439 (Mo.banc), overruling Larabee v. Washington, 793 S.W.2d 357 (Mo.App.W.D.)
(2004) Section allows prejudgment interest on entire judgment, whether for compensatory or punitive damages. Werremeyer v. K.C. Auto Salvage Co. Inc., 134 S.W.3d 633 (Mo.banc), overruling Hoskins v. Business Men's Assurance, 116 S.W.3d 557 (Mo.App.W.D. 2003).