Bask McDonough Hotel, LLC v. American Hotel Development Partners, LLC et al
Filing
57
ORDER AND OPINION directing that judgment is entered in favor of plaintiff and against defendants, jointly and severally, in the amount of $266,310.61, which shall bear interest at the rate of 12% per year. Signed by Judge Julie E. Carnes on 4/4/13. (ddm)
IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF GEORGIA
ATLANTA DIVISION
BASK MCDONOUGH HOTEL,
Plaintiff,
CIVIL ACTION NO.
v.
1:10-cv-1883-JEC
AMERICAN HOTEL DEVELOPMENT
PARTNERS, LLC ALLESSANDRO A.
GIANNINI and CLYDE J. HARRIS,
Defendants.
ORDER & OPINION
This case is before the Court on defendants’ objections to
plaintiff’s Proposed Order [53].
BACKGROUND
The dispute underlying this litigation arose from a failed
attempt to develop a hotel property in McDonough, Georgia. After the
venture
failed,
plaintiff
sought
to
enforce
obligating the defendants to pay $180,000.
Aff. [33] at Ex. 1.)
a
promissory
note
(Note, attached to Jetha
Rejecting the defendants’ defenses, the Court
granted the plaintiff’s motion for summary judgment. (Aug. 2012 Order
[52] at 1.)
In its ruling, it requested that the plaintiff provide
a proposed judgment setting out its calculation of the amount of
money owed by defendants and explaining those calculations. (Id. at
AO 72A
(Rev.8/82)
25.)
Plaintiff submitted its proposed judgment [53], which set out
the plaintiff’s calculation of prejudgment interest, the principal
amount due, and attorney’s fees.
Specifically, plaintiff requested
a judgment in the amounts set out below:
Principal
$180,000
Prejudgment Interest
$75,289.31
Attorney’s Fees
$25,553.93
TOTAL JUDGMENT
$280,843.24
Defendants responded to plaintiff’s proposed order, objecting to
the
plaintiff’s
assertion
that,
for
purposes
of
triggering
prejudgment interest, the Note went into default on June 3, 2008.
Defendants contend that the date of default was May 21, 2010.
difference in this time period represents 717 days.
The
As prejudgment
interest is calculated from the time that defendants became liable
and as attorney’s fees are calculated as a percentage of the total
judgment, these additional 717 days incorrectly increased the amount
of the judgment, according to defendants.
(Resp. to Proposed Order
(“Defs. Resp.”) [54].)
With a default date of May 21, 2010 and a judgment date of
2
AO 72A
(Rev.8/82)
September 21, 2012,1 defendants contend that the judgment should be
calculated as follows:
Prejudgment Interest
Accrual Period: May 21, 2010 - September 21, 2012 (854 days)
•
Daily Interest = (180,000 x .12)/ 365 = $59.1781 (rounded)
•
Interest accrued over 854 days = $50,538.08
Principal and Interest
•
$180,000 + $50,538.08 = $230,538.08
Attorney’s Fees
•
(.15 x 500) + (($230,538.08 - $500 x.1) = $23,078.81
Judgment
•
$230,538.08 + $23,078.81 = $253,616.89
Id. at 4.
The Court directed the parties to try to resolve this dispute,
but they were unable to do so. (Defs.’ Rep. Br. [56] at 1.)
DISCUSSION AND RULING
Upon
review
of
the
parties’
contentions,
the
Court
finds
defendants’ position as to the date of the default to be persuasive.
3.)
Therefore, the defendants correctly assert that prejudgment
interest, at the contracted rate of 12% a year, began on May 21,
2010, not on June 3, 2008.
Accordingly, the Court has recalculated
the plaintiff’s proposed judgement, with a judgment date of this day,
1
September 21, 2012 was the date that the defendants submitted
their objection to plaintiffs’ calculations.
3
AO 72A
(Rev.8/82)
and enters judgment in the amounts calculated below.
I.
CALCULATION OF AMOUNT OWED2
Prejudgment Interest
•
Accrual Period: May 21, 2010 - April 4, 2013 (1,049 days)
•
Daily Interest = (180,000 x .12) / 365 = $59.1781 (rounded)
•
Interest accrued over 1,049 days = $62,077.83
Principal and Interest
•
$180,000 + $62,077.83 = $242,077.83
Attorney’s Fees
•
(.15 x 500) + (($242,077.83 - 500) x .1) = $24,232.78
Judgment
•
$242,077.83 + $24,232.78 = $266,310.61
CONCLUSION
Accordingly, judgment is hereby entered in favor of plaintiff
and against defendants, jointly and severally, in the amount of
$266,310.61.
Pursuant to O.C.G.A § 7-4-12(b), this judgment shall
bear interest at the rate of 12% per year.
2
These figures are taken from defendants’ calculations (Defs.’
Resp. [54] at 4.), and updated to the date of judgment: April 4,
2012.
4
AO 72A
(Rev.8/82)
SO ORDERED, this 4th day of APRIL, 2013.
/s/ Julie E. Carnes
JULIE E. CARNES
CHIEF UNITED STATES DISTRICT JUDGE
5
AO 72A
(Rev.8/82)
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