Bankruptcy Did Not Toll Accrual of Statutory Prejudgment Interest

On April 25, 2023, the First Department issued a decision in Vigilant Ins. Co. v. MF Global Fin. USA Inc., 2023 NY Slip Op. 02088, holding that a bankruptcy did not toll the accrual of statutory prejudgment interest, explaining:

Finally, Supreme Court correctly found that there was no basis under New York law to toll the imposition of mandatory prejudgment interest under CPLR 5001(a) because of defendant’s bankruptcy stay. CPLR 5001 provides that interest shall be recovered and shall be computed from the earliest ascertainable date the cause of action existed. 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 non-breaching party. None of these circumstances are present here.

(Internal citations omitted).

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