ALERDING CASTOR HEWITT LLP v. FLETCHER et al

Filing 270

ORDER ON PREJUDGMENT INTEREST - The parties' agreement did not set an interest rate for unpaid balances, see dkt. 1-2 at 7-8; Plaintiff's trial exhibit 12, so the statutory rate of 8% applies, Indiana Code 24-4.6-1-103; BRC Rubber, 981 F.3d at 636 ("Where the parties have not agreed to a specified interest rate, Indiana law directs courts to use the rate of 8% per year."). At an 8% rate, the actual damages of $67,423.24 accrued prejudgment interest of $14.78 per day (.08/365*67,423.24). See id. (affirming prejudgment interest similarly calculated "per diem through the date of judgment"). August 5, 2016 through September 16, 2021--the date of judgment--is 1,869 days. Plaintiff is therefore entitled to $27,623.82 in prejudgment interest (SEE ORDER FOR ADDITIONAL INFORMATION). Signed by Judge James Patrick Hanlon on 9/16/2021. Copy to Defendant Paul Fletcher and Carole Wockner via US Mail. (DWH)

Case 1:16-cv-02453-JPH-MJD Document 270 Filed 09/16/21 Page 1 of 3 PageID #: 3691

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF INDIANA
INDIANAPOLIS DIVISION
ALERDING CASTOR HEWITT LLP,

)
)
)
)
)
)
)
)
)
)

Plaintiff,
v.
PAUL FLETCHER,
CAROLE WOCKNER,
Defendants.

No. 1:16-cv-02453-JPH-MJD

ORDER ON PREJUDGMENT INTEREST
"Prejudgment interest is intended to compensate a plaintiff for delay in
receiving money it should have received much earlier or should not have been
required to spend in the first place." BRC Rubber & Plastics, Inc., Continental
Carbon Co., 981 F.3d 618, 635 (7th Cir. 2020). In diversity-jurisdiction cases
like this one, state law governs "the propriety of awarding prejudgment
interest." Id. "Under Indiana law, interest may be awarded where the value of
the damage is not in dispute and the damages are ascertainable in accordance
with fixed rules of evidence and accepted standards of valuation at the time the
damages accrued." Id. "This standard leaves considerable play in the joints,"
so prejudgment interest calculations are committed to the Court's discretion.
Id.
Here, the jury returned a verdict for Plaintiff on its breach of contract
claim and awarded actual damages of $67,423.24. That verdict entitles
Plaintiff to an award of prejudgment interest because "a party needs to show
only that the obligor breached the contract by failing to pay the appropriate
1

Case 1:16-cv-02453-JPH-MJD Document 270 Filed 09/16/21 Page 2 of 3 PageID #: 3692

amount by a particular time." Care Group Heart Hospital, LLC v. Sawyer, 93
N.E.3d 745, 757 (Ind. 2018).
"Prejudgment interest is computed from the time the principal amount
was demanded or due." BRC Rubber, 981 F.3d at 636; see Indiana Code § 244.6-1-103. Here, Plaintiff's first invoice demanding payment of the entire
amount sought in this case is dated July 21, 2016, with payment due fifteen
days later. Plaintiff's trial exhibit 45. 1 Prejudgment interest is therefore
computed from August 5, 2016.
The parties' agreement did not set an interest rate for unpaid balances,
see dkt. 1-2 at 7–8; Plaintiff's trial exhibit 12, so the statutory rate of 8%
applies, Indiana Code § 24-4.6-1-103; BRC Rubber, 981 F.3d at 636 ("Where
the parties have not agreed to a specified interest rate, Indiana law directs
courts to use the rate of 8% per year.").
At an 8% rate, the actual damages of $67,423.24 accrued prejudgment
interest of $14.78 per day (.08/365*67,423.24). See id. (affirming prejudgment
interest similarly calculated "per diem through the date of judgment"). August
5, 2016 through September 16, 2021—the date of judgment—is 1,869 days.
Plaintiff is therefore entitled to $27,623.82 in prejudgment interest.

1 While some of the awarded damages may have been billed on previous invoices, that
breakdown is unascertainable and therefore cannot support prejudgment interest
from an earlier date. See BRC Rubber. 981 F.3d at 636; Cincinnati Ins. Co. v. BACT
Holdings, Inc., 723 N.E.2d 436, 441 (Ind. Ct. App. 2000) ("Prejudgment interest is
awarded where the damages are ascertainable in accordance with fixed rules of
evidence and accepted standards of valuation at the time the damages accrued. . . .
Yet, it has been allowed even where some degree of judgment must be used to
measure damages.").

2

Case 1:16-cv-02453-JPH-MJD Document 270 Filed 09/16/21 Page 3 of 3 PageID #: 3693

Final judgment in accordance with the jury's verdict and this order shall
issue by separate entry.
SO ORDERED.
Date: 9/16/2021

Distribution:
PAUL FLETCHER
1203 E. Cota Street
Santa Barbara, CA 93103
CAROLE WOCKNER
1203 E. Cota Street
Santa Barbara, CA 93103
Michael J. Alerding
ALERDING CASTOR LLP
[e-mail]
Michael E. Brown
KIGHTLINGER & GRAY, LLP (Indianapolis)
[e-mail]
Abraham Murphy
[e-mail]

3