Pre-Judgment Interest is Contractor’s Right
Published: Mar 07, 2017 by Luther LiggettAn excavating contractor is entitled of right to statutory Pre-Judgment Interest as damages on breach of contract to repair a sewer line. Post-judgment interest then applies to the damages total including the Pre-Judgment Interest.
In this case, the City of Cleveland argued that the contractor did not use the correct backfill, and further had no contract for the changed specification.
Upon jury trial, the contractor won change order damages of $274,116.14, plus post-judgment interest. But the trial court disallowed Pre-Judgment Interest on the damages amount.
The 8th District Court of Appeals reversed, holding that, the trial court does not have discretion in awarding prejudgment interest. *** [P]rejudgment interest shall be merged with the underlying damages award for purposes of post-judgment interest.
Thus, the contractor is entitled to interest on interest for having to wait through litigation for payment of a valid change order claim.
Fabrizi Trucking & Paving Co. v. City of Cleveland, 8th Dist. Cuyahoga, 2017-Ohio-531.
If you have questions, please do not hesitate to contact attorney Luther Liggett of Graff & McGovern at 614-228-5800, ext. 6.