Default interest / New York law, C.P.L.R., sections 5001 and 5004 / Date of commencement of computation: single intermediate reasonable date

'The statutory interest rate in New York is 9% per annum (C.P.L.R. section 5004). Under section 5001 (b), interest is computed "at the earliest ascertainable date the cause of action existed". Defendant's causes of action for unpaid commissions and unpaid credits came into existence on the date the Claimant breached the Agreement, i.e., . . . February, 1988. Under section 2 of the Agreement, payment of advertising expenses was due on demand. Defendant made a demand on . . . April, 1989.

In New York, interest is awarded for breach of performance of a contract under C.P.L.R. section 5001 (a). See, e.g., Arigo v. Abbott & Cobb, Inc., 86 A.D.2d 958 (4th Dept. 1982). C.P.L.R. 5001 (b) provides that where damages are incurred over time, "interest shall be computed upon each item from the date it was incurred or upon all of the damages from a single reasonable intermediate date".

The Claimants breached the Agreement on . . . February,1988. At this point, its remaining term was eighteen months. The Tribunal concludes that the appropriate date from which to calculate interest is nine months from . . . February, 1988, i.e., . . . October, 1988.'