Opinion ID: 2831499
Heading Depth: 2
Heading Rank: 1

Heading: Interest on a Money Judgment

Text: Prejudgment interest and postjudgment interest compensate a judgment creditor for the lost use of money due as damages. Long v. Castle Tex. Prod. Ltd. P’ship, 426 S.W.3d 73, 77 (Tex. 2014) (citing Phillips, 407 S.W.3d at 238). Prejudgment interest, which accrues from the earlier of (1) 180 days after the date a defendant receives written notice of a claim or (2) the date suit is filed, 9 Johnson did not file a petition for review in this Court and does not challenge the portions of the court of appeals’ judgment affirming the trial court as to past attorney’s fees and court costs. 8 is computed as simple interest and runs until the day before the judgment. TEX . FIN . CODE § 304.104. Postjudgment interest, which begins accruing on the date the judgment is rendered, not only compounds annually but also accrues on prejudgment interest. Id. §§ 304.003(a), .005(a), .006; see also Long, 426 S.W.3d at 77. Accordingly, the date of the judgment can significantly affect the amount ultimately recovered.