Document Type
Article
Publication Date
Fall 2004
Abstract
This paper examines principles for properly computing prejudgment interest by examining the impact on different corporate constituencies. This paper concludes that prejudgment interest at a promisor's cost of funds can undercompensate promisees, by shifting value from the promisee's equityholders to its creditors through a forced investment that decreases the risk of the promisee's portfolio of assets.
Recommended Citation
Royce de R. Barondes, Rejecting the Marie Antoinette Paradigm of Prejudgment Interest, 43 Brandeis L.J. 1 (2004)