Prejudgment interest in a tort case represents?

• A. Interest accruing after judgment.
• B. Interest accruing between injury and judgment.
• C. Interest on punitive damages.
• D. None.

Answer: (B)

Prejudgment interest is the interest that accrues from the time the injury occurs (or the claim first accrues) up to the moment judgment is entered. It compensates the plaintiff for the time value of money during the period before payment is made, reflecting the idea that money owed for damages should be paid with consideration of the delay in receiving it. This differs from post-judgment interest, which starts after the judgment is entered. It also typically applies to the compensatory portion of damages rather than punitive damages, which is why interest on punitive damages isn’t the standard form of prejudgment interest. So, the concept describes interest building up between the injury and the judgment.