Statutory Post-Award Pre-Judgment Interest Available on an Arbitral Award Only From Payment Date Specified in the Award

On July 6, 2022, Justice Cohen of the New York County Commercial Division issued a decision in Go v. Marto Capital LLC, 2022 NY Slip Op. 32127(U), holding that statutory post-award pre-judgment interest on an arbitral award is available only from the date for payment listed in the award, explaining:

Upon confirmation of an arbitrator’s award, statutory interest is typically available pursuant to CPLR § 5002, from the date of the award. However, when the arbitrator’s award requires a party to pay within a certain time period, interest should run only from the expiration of that period.

Here, the Final Decision and Arbitration Award provides that Petitioners Stephanie Siy Go and Ricky Chan Go are entitled to 18 percent simple interest on $500,000 from December 31, 2018, until paid, with the resulting sum to be paid by Respondents no later than June 30, 2022. Thus, Petitioners Ms. Go and Mr. Go are only entitled to post-award, pre-judgment statutory interest from June 30, 2022 until the date judgment is entered. As to Mr. He, the Award held that he is entitled to 18 percent simple interest to run from December 31, 2018 to the date of payment, payable no later than June 30, 2029. Thus, Mr. He is not entitled to statutory post-award, pre-judgment statutory interest.

(Internal quotations and citations omitted) (emphasis added).

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