The Court held that the post-judgment interest rate on the past due royalties in that case was 18%, since that was the "maximum rate allowed by law."But the Court also addressed other contract damages for which the leases did not state an interest rate. Those damages fall under Texas Finance Code section 304.003, which is the catch-all provision for almost all other judgments. Section 304.
The prior version of the Prompt Payment of Claims Act imposed additional damages equal to 18% per annum of the actual damages on an insurer who violated the Act. However, for those claims covered by new Texas Insurance Code Chapter 542A, an insurer which is not in compliance with the Prompt Payment of Claims Act will now be liable for additional damages of 5% percent per annum interest added onto the post-judgment variable interest rate determined under Texas Finance Code Section 304.003. Under the Texas Finance Code, the post-judgment interest rate varies between 5% and 15%, depending on the prime rate established by the Federal Reserve.