(a) With respect to a foreign-money claim, recovery of prejudgment or pre-award interest and the rate of interest to be applied in the action or distribution proceeding, except as provided in subdivision (b), are matters of the substantive law governing the right to recovery under the conflict-of-laws rules of this state.
§ 676.9.Prejudgment Or Pre-Award Interest
Title 8.5. Uniform Foreign-Money Claims Act · Enacted 1991 · no amendments on record · Last verified July 28, 2026
In one sentenceSection 676.9 leaves prejudgment or pre-award interest on a foreign-money claim, and its rate, to the substantive law that governs the underlying right under California's conflict-of-laws rules, except that the court must still adjust that interest under California's settlement-offer and delay-sanction rules, and post-judgment interest runs at the ordinary California rate.
Full Text of § 676.9
(b) The court or arbitrator shall increase or decrease the amount of prejudgment or pre-award interest otherwise payable in a judgment or award in foreign money to the extent required by the law of this state governing a failure to make or accept an offer of settlement or offer of judgment, or conduct by a party or its attorney causing undue delay or expense.
(c) A judgment or award on a foreign-money claim bears interest at the rate applicable to judgments of this state.
Plain-English Summary
Interest on a foreign-money claim splits into two different rules. Subdivision (a) sends prejudgment or pre-award interest — both whether it's recoverable and what rate applies — to whatever substantive law governs the underlying right to recovery, as California's own conflict-of-laws rules would select that law. That's true regardless of what currency the claim is measured in.
Subdivision (b) carves out an exception to that deference: California's own rules penalizing a party for rejecting a reasonable settlement or judgment offer, or for causing undue delay or expense, still apply, and the court or arbitrator has to increase or decrease the prejudgment or pre-award interest to give those California rules their intended effect.
Subdivision (c) is more direct: once judgment or an award is entered, it bears post-judgment interest at the same rate that applies to any other California judgment, regardless of what money the claim was measured in.
Frequently Asked Questions
What law governs prejudgment interest on a foreign-money claim?
The substantive law that governs the underlying claim, as selected by California's conflict-of-laws rules.
Does California's settlement-offer penalty rule still apply to foreign-money claims?
Yes, the court must adjust prejudgment interest to give effect to California's rules on rejected settlement offers or undue delay, regardless of what other law otherwise governs interest.
What interest rate applies after judgment is entered on a foreign-money claim?
The same rate that applies to judgments generally in California.
Amendment History
Added by Stats. 1991, Ch. 932, Sec. 1.
Source & verification. Section text is reproduced verbatim from
the Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 28, 2026.
· Official source
Also known as: prejudgment interest foreign money claim californiapost-judgment interest foreign currency