On March 20, 2026, Justice Masley of the New York County Commercial Division issued a decision in Grayco Alternative Partners II, LP v. 5 Stone Green Capital LLC, 2026 NY Slip Op. 31101(U), holding that New York’s statutory pre-judgment interest rate does not apply to an arbitral award that does not award statutory interest, but does apply to post-award, preconfirmation, interest, explaining:
The parties do not dispute that petitioner is entitled to the arbitration award in the principal amount of $3,941,094.72. Instead, the parties disagree on whether petitioner is entitled to (i) pre-judgment interest, (ii) post-judgement interest, and (iii) costs and disbursements.
Respondents argue that petitioner is not entitled to post-judgment interest under CPLR 5001, 5003, and 5004 because neither the arbitration award nor Judge Reed’s decision award such interest. Petitioner argues that pre-judgment interest at 9% is mandated by statute.
The law is clear that on a motion to confirm an arbitration award, if the award is silent on the question of prejudgment interest, a court is not entitled to award such interest. Rather, upon confirmation of an arbitrator’s award, interest should be provided from the date of the award. Here, the arbitration award is silent on the question of prejudgment interest. Thus, Respondents’ argument that petitioner is not entitled to pre-judgment interest because Judge Reed’s decision did not award such interest fails; Judge Reed was not permitted to award such interest. However, upon Judge Reed’s confirmation of the arbitration award, petitioner became entitled to interest from the date of the award, March 8, 2021.
Under CPLR 5001-5004 the court may grant interest at a rate of 9% annually upon a sum awarded unless in an action of an equitable nature. Respondents argue that the interest rate applied should not be 9% but, instead, the 6% rate specified in the arbitration award. In the arbitration award, Judge Freedman awarded petitioner $3,547,800 plus interest from July 31, 2019 at 6% compounded annually for a total of $3,911,094. Respondents argue that this same interest rate should be applied to calculate pre-judgement interest. The court rejects this argument as there is no language in the arbitration award to suggest that the 6% interest rate applies to a calculation of pre-judgement interest. When the arbitration award is silent on the question of prejudgment interest, the statute governs. Respondents further argue that pre-judgment interest shall be tolled as of December 2021 on the grounds that the First Department noted in its decision that the proceedings were automatically stayed in December 2021 when respondents’ counsel of record died during the pendency of the action. Courts have declined to award prejudgment interest only in a narrow set of cases where the parties either contracted around the statute, punitive damages had been awarded or where interest would amount to a windfall to the nonbreaching party. None of these circumstances are present here.
Accordingly, the court finds that petitioner is entitled to pre-judgment interest at a rate of 9% from March 8, 2021 through the entry of judgment.