Commercial Division Blog
Pre-Judgment Interest on Unpaid Demand Note Due From Date of Demand
On October 29, 2015, the First Department issued a decision in Gliklad v. Cherney, 2015 NY Slip Op. 07919, holding that prejudgment interest on a demand note begins to accrue on the date of demand for payment, explaining:
In an action on a promissory note, CPLR 5001 permits a creditor to recover prejudgment interest from the date on which each payment of principal or interest became due under the terms of the note until the date on which liability is established. If a promissory note does not contain an interest provision but is payable on demand, then interest accrues from the date of the demand, at the statutory rate for a judgment. The only record evidence as to a demand for payment by plaintiff under the note is a demand letter dated July 24, 2009. Thus, July 24, 2009 is the date from which the prejudgment interest should be calculated.
(Internal quotations and citations omitted) (emphasis added).