compensatory interest


Definition of compensatory interest

: interest paid to compensate for the loss of the use of funds by an injured party in a lawsuit We believe that a rule permitting additional damages by way of compensatory interest on pecuniary losses incurred prior to trial in personal injury actions as well as wrongful death claims is consistent with our prior case law and our liberal interest statute.

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First Known Use of compensatory interest

1904, in the meaning defined above

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The first known use of compensatory interest was in 1904

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Cite this Entry

“Compensatory interest.” Dictionary, Merriam-Webster, Accessed 26 Jan. 2021.

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