Rule 4:42-11.Interest; Rate on Judgments; In Tort Actions

Last amended September 1, 2014 · Current through June 18, 2026 · Last verified July 7, 2026

In one sentenceRule 4:42-11 sets simple post-judgment interest tied to the state Cash Management Fund's return rate and requires prejudgment interest in tort actions running from the filing date or six months after the claim arose, whichever is later.

Full Text of Rule 4:42-11

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(a) Post Judgment Interest. Except as otherwise ordered by the court or provided by law, judgments, awards and orders for the payment of money, taxed costs and attorney’s fees shall bear simple interest as follows:

(i) For periods prior to January 2, 1986, the annual rate of return shall be as heretofore provided by this rule, namely, 6% for the period prior to April 1, 1975; 8% for the period between April 1, 1975 and September 13, 1981; and 12% for the period between September 14, 1981 and January 1, 1986.

(ii) For judgments not exceeding the monetary limit of the Special Civil Part at the time of entry, regardless of the court in which the action was filed: commencing January 2, 1986 and for each calendar year thereafter, the annual rate of interest shall equal the average rate of return, to the nearest whole or one-half percent, for the corresponding preceding fiscal year terminating on June 30, of the State of New Jersey Cash Management Fund (State accounts) as reported by the Division of Investment in the Department of the Treasury, but the rate shall be not less than 0.25%.

(iii) For judgments exceeding the monetary limit of the Special Civil Part at the time of entry: in the manner provided for in subparagraph (a)(ii) of this Rule until September 1, 1996; thereafter, at the rate provided in subparagraph (a)(ii) plus 2% per annum. Post-judgment interest may be included in the calculation of an attorney’s contingency fee.

(b) Tort Actions. Except where provided by statute with respect to a public entity or employee, and except as otherwise provided by law, the court shall, in tort actions, including products liability actions, include in the judgment simple interest, calculated as hereafter provided, from the date of the institution of the action or from a date 6 months after the date the cause of action arises, whichever is later, provided that in exceptional cases the court may suspend the running of such prejudgment interest. Prejudgment interest shall not, however, be allowed on any recovery for future economic losses. Prejudgment interest shall be calculated in the same amount and manner provided for by paragraph (a) of this rule except that for all periods prior to January 1, 1988 interest shall be calculated at 12% per annum. The contingent fee of an attorney shall not be computed on the interest so included in the judgment.

End

Amendment History

New Jersey publishes each rule’s amendment record in a “History” note beneath the rule. It is reproduced verbatim below; the “R.R.” citations refer to the former Revised Rules numbering the current rules replaced.

Adopted December 21, 1971 to be effective January 31, 1972. Paragraph (b); amended June 29, 1973 to be effective September 10, 1973; paragraphs (a) and (b); amended November 27, 1974 to be effective April 1, 1975; paragraphs (a) and (b); amended July 29, 1977 to be effective September 6, 1977; paragraphs (a) and (b); amended July 16, 1981 to be effective September 14, 1981; paragraph (a); amended July 15, 1982 to be effective September 13, 1982; paragraph (a); amended July 26, 1984 to be effective September 10, 1984; paragraph (a); amended November 1, 1985 to be effective January 2, 1986; paragraph (b); amended November 2, 1987 to be effective January 1, 1988; paragraph (a)(ii); amended and paragraph (a)(iii) added June 28, 1996 to be effective September 1, 1996; paragraph (b); amended April 28, 2003 to be effective July 1, 2003; paragraph (a); amended July 23, 2010 to be effective September 1, 2010; paragraph (a)(ii); amended July 22, 2014 to be effective September 1, 2014.

Plain-English Summary

Money judgments earn interest while they sit unpaid. Post-judgment interest is simple interest, and since 1986 the annual rate has tracked the average return on the State of New Jersey Cash Management Fund, rounded to the nearest half percent with a 0.25% floor; judgments above the Special Civil Part's monetary limit have earned an extra 2% since September 1996.

Tort actions, including products liability claims, get something more: prejudgment interest, calculated the same way, running from whichever comes later — the date the action was filed or six months after the claim arose — though it does not apply to future economic losses, and a court can suspend it in an exceptional case. Post-judgment interest may be included in an attorney's contingency-fee calculation; the prejudgment interest added in a tort case may not.

Frequently Asked Questions

Does prejudgment interest apply to every claim in a New Jersey lawsuit?

No. It applies specifically in tort actions, including products liability claims, and does not apply to a recovery for future economic losses.

When does prejudgment interest start running in a tort case?

From the date the action was filed, or six months after the cause of action arose, whichever is later.

Can an attorney's contingency fee be calculated on interest included in a judgment?

In part. Post-judgment interest may be included in the calculation, but the prejudgment interest added in a tort case may not.

Source & verification. The rule text and amendment history are reproduced verbatim from the official New Jersey Rules of Court (N.J. Ct. R. 4:42-11). Prescribed by the Supreme Court of New Jersey (N.J. Const. art. VI, § 2, ¶ 3). The plain-English summary is original and written by us. Last verified July 7, 2026. · Official source

Also known as: prejudgment interestpost-judgment interest rateinterest on judgments