Code of Alabama
Ala. Code § 8-8-8 (2026)
Interest Accrues on Breach of Contract.
✓ official Alabama Legislature (ALISON) text, current July 2026
All contracts, express or implied, for the payment of money, or other thing, or for the performance of any act or duty bear interest from the day such money, or thing, estimating it at its money value, should have been paid, or such act, estimating the compensation therefor in money, performed.
(Code 1852, §1520; Code 1867, §1828; Code 1876, §2089; Code 1886, §1751; Code 1896, §2627; Code 1907, §4620; Code 1923, §8564; Code 1940, T. 9, §62.)
Notes of Decisions
Cited in 51
cases (8 in the last 5 years), 1979–2026 · leading case: Arnold v. State Farm Fire & Cas. Co., 268 F. Supp. 3d 1297 (S.D. Ala. 2017).
Arnold v. State Farm Fire & Cas. Co., 268 F. Supp. 3d 1297 (S.D. Ala. 2017). “Anticipating this response, the defendant argues that entitlement to prejudgment interest for breach of contract is governed by Alabama Code § 8-8-8 and that the plaintiff, for various fact-intensive reasons, cannot satisfy that provision’s elements, viz.”
State Pers. Bd. v. Akers, 797 So. 2d 422 (Ala. 2000). “The Employees filed a motion asking the court to alter, amend, or vacate its September 27, 1999, order.”
Ballard v. Lee A. McWilliams Constr., Inc., 258 So. 3d 336 (Ala. Civ. App. 2018). “The Company's Cross-Appeal The company's cross-appeal concerns the trial court's failure to award prejudgment interest on the damages award, which it contends is due under Ala. Code 1975, § 8-8-8. As noted above, the company sought prejudgment interest from July 1, 2010, on the…”
Thomas v. Liberty Nat. Life Ins. Co., 368 So. 2d 254 (Ala. 1979). “Code 1975 (then § 4620, Alabama Code of 1907), this Court stated: "The law existing at the time of the issuance of this policy entered into and became a part of the contract, and under the provisions of the foregoing statute we think interest was demandable from the time the…”
Manderson & Assocs., Inc. v. Gore, 389 S.E.2d 251 (Ga. Ct. App. 1989). “Under Alabama Code § 8-8-8, pre-judgment interest runs only on such sums as are certain or are capable of being made certain.”
LeFevre v. Westberry, 590 So. 2d 154 (Ala. 1991). “judgment on this point, the trial court stated: *163 "It is the opinion of this court that because of the many variables involved in evaluating and agreeing upon a settlement involving compensation for personal injuries that the amount, if any, owed by the defendant under the…”
State Farm Mut. Auto. Ins. Co. v. Wallace, 743 So. 2d 448 (Ala. 1999). “To deny a plaintiff the right to that factual determination is to the plaintiffs rights under Ala.Code 1975, § 8-8-8, which states: "All contracts, express or implied, for the payment of money, or other thing, or for the performance of any act or duty bear interest from the day…”
Har-Mar Collisions, Inc. v. Scottsdale Ins. Co., 212 So. 3d 892 (Ala. 2016). “6 *905 Har-Mar Collisions argues that the trial court erred in denying its prejudgment motion to add, pursuant to § 8-8-8, Ala. Code 1975, interest to the jury verdict of $101,054.”
Burford Equip. Co., Inc. v. Centennial Ins. Co., 857 F. Supp. 1499 (M.D. Ala. 1994). “Ala.Code § 8-8-8 (1993). In Thomas v. Liberty National Life Insurance Co.”
McKinney Drilling Co. v. Collins Co., Inc., 517 F. Supp. 320 (N.D. Ala. 1981). “Under § 8-8-8 of the Code of Alabama (1975) 11 , McKinney is entitled to interest from Collins from January 20, 1980, the date payment was due under the contract.”
Health Care Auth. v. Madison Cnty., 601 So. 2d 459 (Ala. 1992). “Gamble, supra, § 8-7; citing Ala.Code 1975, § 8-8-8." Miller & Co. v. McCown, 531 So.”
Nelson v. AmSouth Bank, N.A., 622 So. 2d 894 (Ala. 1993). “Nelson did not seek to recover damages from AmSouth for breach of contract; therefore, Ala. Code 1975, § 8-8-8, is not applicable.”
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