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It's a way that a court can increase the amount of damages because of the time that elapsed between your injury and the judgment.
Let's suppose you and I have a contract that I breach with you today and I now owe you $10,000. You sue me in court to recover your losses, and then two years from now you obtain a judgment against me. The court may, in some instances, allow you to apply interest to the original $10,000 to help compensate you for any opportunity costs. In other words, you could have put that $10,000 to good use two years ago and so you should be compensated for having to wait to get your money.
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∙ 11y ago
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