Grounds for the recovery of interest.

Practice point: The complaint did not state a cause of action because it set forth no contractual or statutory basis upon which plaintiff could recover interest. The obligation to pay interest on a debt is not implied as a matter of law. Consistently, the First Department has held that as a general rule, interest is allowed only when provided for by contract, express or implied, or by statute, or when, as damages, it becomes due after a default by the person liable for payment.

Student note: Pre-judgment or pre-decision interest is purely a creature of statute, based on Matter of Bello v. Roswell Park Cancer Inst., 5 NY3d 170 (2005). 

Case: Metwaly v. International Bus. Machines Corp., NY Slip Op 05791 (1st Dept. 2012).

Here is the decision.

Tomorrow’s issue: Summary judgment in an age discrimination action.