Hawaii Revised Statutes

Haw. Rev. Stat. § 661-8 (2026)

  Interest

✓ current as of July 2026
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     §661-8  Interest.  No interest shall be allowed on any claim up to the time of the rendition of judgment thereon by the court, unless upon a contract expressly stipulating for the payment of interest, or upon a refund of a payment into the "litigated claims fund" as provided by law. [L 1894-5, c 26, §8; RL 1925, §2676; RL 1935, §4427; RL 1945, §10482; am L 1951, c 224, §4; RL 1955, §245-8; HRS §661-8]

 

Cross References

 

  Litigated claims fund, see §§40-35 and 232-24.

 

Case Notes

 

  Section does not preclude prejudgment interest where the State is not involved.  51 H. 346, 461 P.2d 140 (1969).

  Notwithstanding the constitutional right of a state to sovereign immunity pursuant to the Eleventh Amendment of the United States Constitution, the intermediate court of appeals did not err in determining that the State waived sovereign immunity in arbitration proceedings resulting in award of prejudgment interest pursuant to this section because:  (1) Hawaii case law does not prohibit arbitrators from making awards of prejudgment interest; (2) this section does not state that an arbitrator is prohibited from awarding prejudgment interest against the State; and (3) the State "explicitly availed itself" of arbitration proceedings.  140 H. 381, 400 P.3d 582 (2017).

  As this section disallows prejudgment interest on claims against the State, except in certain, identified instances, the State did not waive its sovereign immunity from an award of prejudgment interest under this section, and §478-2 did not contradict or supersede the limitation of the State's obligation to pay prejudgment interest only upon a "contract expressly stipulating for the payment of interest", the circuit court did not err when it denied plaintiffs' request for prejudgment interest.  122 H. 150 (App.), 223 P.3d 215 (2009).

  Mentioned: 654 F. Supp. 2d 1142 (2009).

 

 

Notes of Decisions
In re Arbitration between Hawaii State Teachers Ass'n & State of Hawaii, Dep't of Educ.. ICA Opinion, filed 11/26/2013. Consol. with No. CAAP-11-0000140., 400 P.3d 582 (Haw. 2017). · cites it 17× “According to the State, the ICA’s decision regarding sovereign immunity directly conflicts with HRS § 661-8 (1993), 14 and two Hawai'i cases: Taylor-Rice and Garner v.”
Chun v. Bd. of Trs., 106 P.3d 339 (Haw. 2005). · cites it 10× “Similarly, HRS § 661-8 expressly waives the State’s immunity from prejudgment interest on claims based “upon a contract expressly stipulating for the payment of interest, or upon a refund of a payment into the ‘litigated claims fund’ as provided by law.”
Kawashima v. State, Dep't of Educ.., 398 P.3d 728 (Haw. 2017). · cites it 18× “The ICA also ruled that: (1) pursuant to HRS § 661-1, 6 the *145 substitute teachers’ claim for breach of contract damages was not barred by sovereign immunity; (2) HRS § 302A-624(e), as a pay mandating statute, provided an alternative basis for invoking jurisdiction under the…”
Fought & Co. v. Steel Eng'g & Erection, Inc., 951 P.2d 487 (Haw. 1998). · cites it 6× “claims *43 against the DOT were not barred by sovereign immunity, then summary judgment had been erroneously granted because there remained genuine issues of material fact regarding the provisions of the contracts at issue; or (3) if the claims against'the DOT were not barred by…”
Garner v. State, Dep't of Educ., 223 P.3d 215 (Haw. App. 2009). · cites it 9× “2004), as a pay-mandating statute, provided an alternative basis for invoking the court’s jurisdiction under the “founded upon any statute” language in HRS § 661-1; (4) the Substitute Teachers’ claim for pre-judgment interest is barred by HRS § 661-8 (1993); (5) the Circuit…”
Kalima v. State., 468 P.3d 143 (Haw. 2020). · cites it 10× “The circuit court correctly ruled that adjusting damages to present value constitutes an award of prejudgment interest in violation of HRS § 661-8. The circuit court adhered to the HRS Chapter 674 actual damages requirement by ruling that damages will not be adjusted to present…”
Rodrigues v. State, 472 P.2d 509 (Haw. 1970). · cites it 4× “Further support is given the proposition that "interest" in HRS 662-2 refers only to compensation for delay in payment of money damages by HRS 661-8. HRS 661-8, referring to suits by and against the State, provides that "No interest shall be allowed on any claim up to the time…”
Sierra Club v. Dep't of Transp. of the State, 202 P.3d 1226 (Haw. 2009). · cites it 2× “*233 Similarly, HRS § 661-8 expressly prohibits an award of prejudgment interest against state agencies.”
Kemp v. State Child Support Enf't Agency, 141 P.3d 1014 (Haw. 2006). · cites it 2× “HRS § 661-8 (1993), entitled "Interest,” provides that "[n]o interest shall be allowed on any claim up to the time of the rendition of judgment thereon by the court, unless upon a contract expressly stipulating for the payment of interest, or upon a refund of a payment into the…”
Lucas v. Liggett & Myers Tobacco Co., 461 P.2d 140 (Haw. 1969). · cites it 4× “§ 2007 (1905)] This statute is now compiled with amendments as HRS § 661-8, and it is applicable only to suits by and against the state.”
Kenneth H. Hughes, Inc. v. Aloha Tower Dev., Corp., 654 F. Supp. 2d 1142 (D. Haw. 2009). · cites it 3× “” The arbitration demand was not a claim and the award was not a judgment by the court, and therefore HRS § 661-8 is not controlling. It is of note that the Supreme Court of Hawaii has reached a similar conclusion regarding a similar statute.”
In re the Arbitration between Hawaii State Teachers Ass'n & State, Dep't of Educ., 318 P.3d 591 (Haw. App. 2013). · cites it 9× “The State submits various arguments regarding sovereign immunity and public policy, based chiefly on HRS § 661-8 (1993), which prohibits pre-judgment interest on claims against the State.”
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