The informative article by Thomas F. Gleason (“Pre-Judgment Interest and Stipulations of Liability Under CPLR 5002,” NYLJ, 9/18/17) understandably triggered calls from readers regarding the status of the Court of Appeals decision in Mahoney v. Brockbank, 142 A.D.3d 200 (2nd Dept., 2016), lv granted, 29 N.Y.3d 904 (2017). Some of Mr. Gleason’s thoughts how to address the ramifications of Mahoney also warrant further comment.
Whether a plaintiff is entitled to prejudgment interest from the moment a defendant concedes liability will not be decided by the Court of Appeals. Immediately after the Court granted plaintiff leave, the defendant, who previously argued that interest ran from the date of the jury’s damages verdict, suddenly agreed to pay every cent of interest owed from the date of the stipulation conceding liability to the date judgment was entered (CPLR 5002) and until it was paid in May 2017 (CPLR 5003). By offering the full $115,000 of interest, which the plaintiff had no choice but to accept, the defendant successfully silenced the Court of Appeals on this important issue and prevented a reversal of the Appellate Division’s order.
