How Is Pre-Judgment & Post-Judgment Interest Calculated in Texas Personal Injury Lawsuits? (Fin. Code Ch. 304)
Direct Answer Under Texas Law
Under the Texas Finance Code (§§ 304.003 and 304.104), personal injury and wrongful death judgments in Texas accrue statutory interest at the Federal Reserve Prime Rate (with a statutory floor of 5.0% and ceiling of 15.0% per year—hovering around 7.5% to 8.5% in recent years!). Under § 304.104, Pre-Judgment Interest begins accruing on the EARLIER of: (1) the 180th day after the defendant receives written notice of the claim, OR (2) the date the lawsuit is filed!
Critical Texas Procedural Trap to Watch Out For
Important restriction under Tex. Fin. Code § 304.1045 and § 41.007: in Texas, Pre-Judgment Interest is calculated ONLY on PAST damages (past medical bills, past lost wages, past pain/anguish)—pre-judgment interest may NOT be assessed on future damages or exemplary damages!
Recommended Action Plan for Texas Claimants
Send a formal certified-mail Notice of Claim immediately after a crash to start the 180-day Pre-Judgment Interest clock under Tex. Fin. Code § 304.104.
Detailed Texas Statutory & Case Law Breakdown
Under Tex. Fin. Code §§ 304.003, 304.101–304.1045 (Prime Rate 5%–15% Floor/Ceiling) and controlling Texas appellate precedent in Columbia Hospital Corp. of Houston v. Moore, 92 S.W.3d 470 (Tex. 2002), Texas trial and appellate courts apply strict statutory rules to this exact issue. Unlike generic multi-state legal summaries, Texas tort procedure under the Civil Practice and Remedies Code (CPRC), Insurance Code, Transportation Code, and Labor Code enforces specific statutory formulas—including the 51% proportionate responsibility bar (CPRC § 33.001), paid-or-incurred medical expense admissibility (CPRC § 41.0105 / Haygood), and mandatory statutory lien caps (Prop. Code Ch. 55 & Ins. Code Ch. 140).
Step-by-Step Texas Procedural Checklist
- Verify the exact statutory text of Tex. Fin. Code §§ 304.003, 304.101–304.1045 (Prime Rate 5%–15% Floor/Ceiling) and how Texas courts apply Columbia Hospital Corp. of Houston v. Moore, 92 S.W.3d 470 (Tex. 2002) in your county's appellate district.
- Beware of the Texas Procedural Trap: Important restriction under Tex. Fin. Code § 304.1045 and § 41.007: in Texas, Pre-Judgment Interest is calculated ONLY on PAST damages (past medical bills, past lost wages, past pain/anguish)—pre-judgment interest may NOT be assessed on future damages or exemplary damages!
- Execute the Texas Action Plan: Send a formal certified-mail Notice of Claim immediately after a crash to start the 180-day Pre-Judgment Interest clock under Tex. Fin. Code § 304.104.
- Preserve all physical, electronic, and medical billing records early so your CPRC § 18.001 affidavits and TRCP 194.2 Initial Disclosures are complete.
Frequently Asked Questions Under Texas Law
How Is Pre-Judgment & Post-Judgment Interest Calculated in Texas Personal Injury Lawsuits? (Fin. Code Ch. 304)
Under the Texas Finance Code (§§ 304.003 and 304.104), personal injury and wrongful death judgments in Texas accrue statutory interest at the Federal Reserve Prime Rate (with a statutory floor of 5.0% and ceiling of 15.0% per year—hovering around 7.5% to 8.5% in recent years!). Under § 304.104, Pre-Judgment Interest begins accruing on the EARLIER of: (1) the 180th day after the defendant receives written notice of the claim, OR (2) the date the lawsuit is filed! Key Texas Trap to Avoid: Important restriction under Tex. Fin. Code § 304.1045 and § 41.007: in Texas, Pre-Judgment Interest is calculated ONLY on PAST damages (past medical bills, past lost wages, past pain/anguish)—pre-judgment interest may NOT be assessed on future damages or exemplary damages!
What Texas statute and Supreme Court / appellate precedent control pre-judgment & post-judgment interest in texas?
This question is governed in Texas by Tex. Fin. Code §§ 304.003, 304.101–304.1045 (Prime Rate 5%–15% Floor/Ceiling) and the legal standards articulated in Columbia Hospital Corp. of Houston v. Moore, 92 S.W.3d 470 (Tex. 2002). Recommended step: Send a formal certified-mail Notice of Claim immediately after a crash to start the 180-day Pre-Judgment Interest clock under Tex. Fin. Code § 304.104.
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- 3. Content May Be Inaccurate or Outdated: Although articles reference the Texas Civil Practice and Remedies Code (CPRC), Texas Transportation Code, Texas Insurance Code, Texas Labor Code, Texas Rules of Civil Procedure (TRCP), and published decisions of the Supreme Court of Texas and the 15 Texas Courts of Appeals, legislation and appellate holdings change continually. Information on this website may be incomplete, inaccurate, or superseded by subsequent statutory amendments or judicial opinions.
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