compensatory interest

noun

: 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.

Word History

First Known Use

1904, in the meaning defined above

Time Traveler
The first known use of compensatory interest was in 1904

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Dictionary Entries Near compensatory interest

Cite this Entry

“Compensatory interest.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/compensatory%20interest. Accessed 21 Feb. 2024.

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