Cal. Codes » Civil Code / DIVISION 4. GENERAL PROVISIONS / PART 1. RELIEF / TITLE 2. COMPENSATORY RELIEF / CHAPTER 1. Damages in General / ARTICLE 2. Interest as Damages
California Codes

Cal. Civil Code § 3289 (2026)

Interest as Damages

✓ leginfo export of Sept. 26, 2026 (applied Oct. 1, 2026)
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(a)Any legal rate of interest stipulated by a contract remains chargeable after a breach thereof, as before, until the contract is superseded by a verdict or other new obligation.

(b)If a contract entered into after January 1, 1986, does not stipulate a legal rate of interest, the obligation shall bear interest at a rate of 10 percent per annum after a breach.

For the purposes of this subdivision, the term contract shall not include a note secured by a deed of trust on real property.

Notes of Decisions
Cited in 134 cases (63 in the last 5 years), 1960–2026 · leading case: Landstar Ranger, Inc. v. PARTH Enter., INC., 725 F. Supp. 2d 916 (C.D. Cal. 2010).
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Landstar Ranger, Inc. v. PARTH Enter., INC., 725 F. Supp. 2d 916 (C.D. Cal. 2010). · cites it 4× “34 and to award prejudgment interest under California Civil Code § 3289. 4 Landstar also requests the opportunity to submit a bill of costs following entry of the default judgment.”
Copart, Inc. v. Sparta Consulting, Inc., 339 F. Supp. 3d 959 (E.D. Cal. 2018). · cites it 3× “" Cal. Civ. Code § 3289 (b). "Courts may consider a variety of factors in determining an award of prejudgment interest under Section 3287(b), including (1) whether the party seeking interest was at fault for any delay in resolution of the case; (2) whether interest penalizes the…”
Wolf v. Walt Disney Pictures & Television, 162 Cal. App. 4th 1107 (Cal. Ct. App. 2008). “The Trial Court Did Not Err in Concluding the Proper Prejudgment Rate of Interest Is 7 Percent Civil Code section 3289, subdivision (b), provides that, when a contract entered into after January 1, 1986 does not provide for a legal rate of prejudgment interest, the prejudgment…”
Tamara Diaz v. Kubler Corp., 785 F.3d 1326 (9th Cir. 2015). · cites it 2× “” Cal. Civ.Code § 3289. The Rosenthal Act “mimics or incorporates by reference the FDCPA’s requirements .”
Teachers' Ret. Bd. v. Genest, 154 Cal. App. 4th 1012 (Cal. Ct. App. 2007). · cites it 2× “” Civil Code section 3289 specifies the rate of prejudgment interest in contract cases as follows, in pertinent part: “(b) If a contract entered into after January 1, 1986, does not stipulate a legal rate of interest, the obligation shall bear interest at a rate of 10 percent…”
Bentley v. United of Omaha Life Ins. Co., 371 F. Supp. 3d 723 (C.D. Cal. 2019). · cites it 2× “To that end, Bentley maintains that the prejudgment interest applied should be ten percent per annum after breach pursuant to Cal. Civ. Code § 3289 (b), because the Class Policies do not specify a legal rate of interest.”
Chinese Yellow Pages Co. v. Chinese Overseas Mktg. Serv. Corp., 170 Cal. App. 4th 868 (Cal. Ct. App. 2008). · cites it 2× “1028 ] [contractually specified interest rate terminated on date judgment entered, and interest on judgment thereafter governed solely by statutory interest rate applicable to judgments]; Civ. Code, § 3289(a).)" ( Chelios v. Kaye, supra, 219 Cal.”
Howard v. Am. Nat'l Fire Ins., 187 Cal. App. 4th 498 (Cal. Ct. App. 2010). “The rate of interest for breach of contract (unless specified by the contract itself) is 7 percent on contracts entered into on or before January 1, 1986, and 10 percent on contracts entered into after January 1, 1986.”
Westport Ins. Corp. v. California Cas. Mgt., 916 F.3d 769 (9th Cir. 2019). “Cal. Civ. Code § 3289 . California Casualty argues that WESTPORT INS.”
Pro Value Props., Inc. v. Quality Loan Serv. Corp., 170 Cal. App. 4th 579 (Cal. Ct. App. 2009). · cites it 2× “DISCUSSION (1) As the trial court acknowledged, the California Constitution provides for prejudgment interest at 7 percent per annum.”
Andrade v. Arby's Restaurant Grp., Inc., 225 F. Supp. 3d 1115 (N.D. Cal. 2016). “6, Cal. Civ. Code § 3289 (b). A meal break claim does not fall under this category, nor do waiting time penalties.”
Palmer v. Stassinos, 348 F. Supp. 2d 1070 (N.D. Cal. 2004). · cites it 2× “Code § 3289(b) (“If a contract entered into after January 1, 1986 does not stipulate a legal rate of interest, the obligation shall bear interest at a rate of 10 percent per annum after a breach.”
Show all 134 citing cases →
Cal. Civil Code § 3289(a): 5 cases
Chinese Yellow Pages Co. v. Chinese Overseas Mktg. Serv. Corp., 170 Cal. App. 4th 868 (Cal. Ct. App. 2008). “1028 ] [contractually specified interest rate terminated on date judgment entered, and interest on judgment thereafter governed solely by statutory interest rate applicable to judgments]; Civ. Code, § 3289(a).)" ( Chelios v. Kaye, supra, 219 Cal.”
Chelios v. Kaye, 219 Cal. App. 3d 75 (Cal. Ct. App. 1990).
Citicorp Real Est., Inc. v. Smith, 155 F.3d 1097 (9th Cir. 1998).
Aboulhosn v. Merrill Lynch, Pierce, Fenner & Smith Inc., 940 F. Supp. 2d 1203 (C.D. Cal. 2013).
Resolution Trust Corp. v. First Am. Bank, 155 F.3d 1126 (9th Cir. 1998).
Cal. Civil Code § 3289(b): 21 cases
Landstar Ranger, Inc. v. PARTH Enter., INC., 725 F. Supp. 2d 916 (C.D. Cal. 2010). “34 and to award prejudgment interest under California Civil Code § 3289. 4 Landstar also requests the opportunity to submit a bill of costs following entry of the default judgment.”
Hunt v. Check Recovery Sys., Inc., 478 F. Supp. 2d 1157 (N.D. Cal. 2007).
Schwartz v. Twin City Fire Ins., 492 F. Supp. 2d 308 (S.D.N.Y. 2007).
Palmer v. Stassinos, 348 F. Supp. 2d 1070 (N.D. Cal. 2004). “Code § 3289(b) (“If a contract entered into after January 1, 1986 does not stipulate a legal rate of interest, the obligation shall bear interest at a rate of 10 percent per annum after a breach.”
Rodman v. Safeway Inc., 125 F. Supp. 3d 922 (N.D. Cal. 2015).
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