(1) With respect to a foreign-money claim, recovery of prejudgment interest and the rate of interest to be applied in the action or distribution proceeding are matters of the substantive law governing the right to recovery under the conflict of laws rules of this state.
806.38.Prejudgment and judgment interest.
Ch. 806: Judgment · Last amended 1991 · Last verified July 15, 2026
In one sentenceSection 806.38 leaves prejudgment interest on a foreign-money claim to the substantive law selected under Wisconsin’s conflict-of-laws rules, allows that amount to be adjusted under specific statutes, and applies the state’s standard judgment interest rate to any foreign-money judgment.
Full Text of Section 806.38
(3) A judgment on a foreign-money claim bears interest at the same rate applicable to other judgments of this state.
Plain-English Summary
Section 806.38 separates two kinds of interest that can attach to a foreign-money claim. Subsection (1) governs interest that accrues before judgment: whether it can be recovered at all, and at what rate, is a matter of the substantive law that governs the right to recovery under Wisconsin’s conflict-of-laws rules, not a rule this section sets itself.
Subsection (2) carves out a limited adjustment to that default. Notwithstanding subsection (1), the amount of prejudgment interest otherwise payable may be increased or decreased to the extent required by Sections 802.05, 805.03, or 807.01. The reference to Section 807.01 ties this section to the settlement-offer statute, which awards added interest to a party who beats an unaccepted offer at trial.
Subsection (3) governs the separate question of interest after judgment: a judgment on a foreign-money claim bears interest at the same rate applicable to other judgments of the state, rather than at any special rate tied to the foreign currency involved.
Frequently Asked Questions
What law decides whether I can recover prejudgment interest on a foreign-money claim?
Subsection (1) makes that a matter of the substantive law governing the right to recovery under the conflict of laws rules of Wisconsin, rather than a rate this section itself sets.
Can prejudgment interest on a foreign-money claim be adjusted for reasons beyond the conflict-of-laws analysis?
Yes. Subsection (2) allows an increase or decrease in the amount of prejudgment interest otherwise payable to the extent required by Sections 802.05, 805.03, or 807.01, notwithstanding the general rule in subsection (1).
Does a judgment on a foreign-money claim earn interest at a special foreign rate?
No. Subsection (3) provides that a judgment on a foreign-money claim bears interest at the same rate applicable to other judgments of the state.
Does Section 806.38 set its own prejudgment interest rate?
No. It defers to the substantive law governing the right to recovery under Wisconsin’s conflict-of-laws rules, rather than fixing a rate itself, except for the limited adjustment subsection (2) allows.
How does an unaccepted settlement offer under Section 807.01 interact with prejudgment interest on a foreign-money claim?
Subsection (2) allows the amount of prejudgment interest to be increased or decreased to the extent required by Section 807.01, which awards added interest to a party who does not accept a settlement offer and later recovers a judgment at least as favorable.
Amendment History
History: 1991 a. 236.
Source & verification. Section text and official notes are
reproduced verbatim from the Wisconsin Statutes, published by the
Wisconsin Legislature (Legislative Reference Bureau). Last verified July 15, 2026.
· Official source
Also known as: prejudgment interest foreign currency wisconsinjudgment interest rate foreign money wisconsinconflict of laws interest wisconsin807.01 interest foreign money claim