§ 1268.330.Value of Continued Possession Offset Against Interest; Rents and Other Income Received Offset Against Interest

Interest compensates the owner for losing the use of compensation money, but if the owner is still sitting on the property itself, or profiting from it, an unadjusted interest award would overcompensate. This section builds in two offsets to keep the numbers honest.

First, if the defendant stays in actual possession of the property after interest begins to accrue, the value of that continued possession gets offset against the interest otherwise owed. To avoid a battle over exactly what that possessory value is worth, the statute presumes it equals the same interest rate calculated under § 1268.350, applied to the compensation awarded -- though this is a presumption affecting the burden of proof, meaning either side can put on evidence to show the real value of possession was higher or lower.

Second, if the defendant receives rents or other income from the property attributable to the period after interest starts running, the net amount of that income also gets offset against the interest. Between continued possession and any income the property still generates, this section prevents interest from becoming a windfall layered on top of benefits the owner is already receiving from the property.