Environmental Dimensions, Inc. v. EnergySolutions Government Group, Inc.
Filing
219
MEMORANDUM OPINION AND ORDER GRANTING DEFENDANT'S MOTION FOR PRE-JUDGMENT AND POST-JUDGMENT INTEREST by District Judge Kea W. Riggs. The 206 Motion for Pre-Judgment and Post-Judgment Interest is GRANTED. (ve)
Case 1:16-cv-01056-KWR-JHR Document 219 Filed 03/15/21 Page 1 of 7
IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF NEW MEXICO
______________________
ENVIRONMENTAL DIMENSIONS, INC.,
Plaintiff,
v.
No. 1:16-cv-1056-KWR-JHR
ENERGYSOLUTIONS GOVERNMENT
GROUP, INC. (n/k/a Atkins Energy
Government Group, Inc.),
Defendant.
MEMORANDUM OPINION AND ORDER GRANTING
DEFENDANT’S MOTION FOR PRE-JUDGMENT AND POST-JUDGMENT INTEREST
THIS MATTER comes before the Court upon Plaintiff’s Motion for Pre-Judgment and
Post-Judgment Interest, filed November 20, 2020 (Doc. 206). Having considered the parties’
submissions and the applicable law, the Court finds that Defendant’s motion is well-taken and,
therefore, is GRANTED.
BACKGROUND1
The claims arise from a dispute involving a nuclear waste remediation project the parties
worked on together at Los Alamos National Lab (“LANL”). The facts of the case have been
extensively outlined by the Court in several prior Memorandum and Opinion Orders and need not
be restated in their entirety here. See Docs. 167, 168, 188, 196, 202, and 215. Relevant to the
instant motion, Defendant, a subcontractor of Plaintiff’s, carried out work authorized by Plaintiff,
after which Defendant submitted six invoices dating from March 10 - August 11, 2015 amounting
1 The Court incorporates the following factual background from findings in its preceding MOO’s, which are taken
largely from undisputed facts cited by Defendant and supported in the record. See Docs. 167, 168, 188, 202 and 215.
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to $1,041,531.74,2 for which it was not paid, although Plaintiff submitted invoices to Los Alamos
National Security, LLC (LANS) for the same work and received payment.
RELEVANT PROCEDURAL HISTORY
On February 11, 2020, the undersigned granted Defendant’s motion for summary judgment
on Plaintiff’s claims for breach of contract and fraud, and on February 14, 2020, granted
Defendant’s motion for partial summary judgment on Plaintiff’s New Mexico Unfair Trade
Practices claim, thereby disposing of Plaintiff’s remaining claims. On April 30, 2020, the Court
granted Defendant’s Motion for Reconsideration (Doc. 188), thereby granting summary judgment
on Defendant’s counterclaim for breach of contract and alternatively for unjust enrichment. The
Court did not reach the merits of Defendant’s other counterclaims. On July 6, 2020, in accordance
with Defendant’s status report request, the Court addressed the remaining counterclaims, ruling in
Defendant’s favor but deferring with respect to its counterclaim for an open account/account
stated. Doc. 196.
On October 28, 2020 the Court granted summary judgment on Defendant’s remaining
counterclaim for an open account/account stated. Doc. 202. The Court directed the parties to file
briefing within fourteen (14) days of the entry of that order on whether a jury trial is required to
resolve the issue of damages. On November 11, 2020, Defendant filed briefing with the Court
(Doc. 203) and Plaintiff, while not in compliance with the Court’s directive, filed a “Notice and
Statement of Plaintiff on Defendant’s Counterclaim” (Doc. 204) to the effect that the company no
2 Defendant’s invoices originally amounted to $1,057,354.63, however, invoice 41537, which Defendant invoiced for
$281,011.44, was only approved for $265,188.55, thereby resulting in an outstanding balance of $1,041,531.74. Doc.
206 at 5, fn 4.
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longer exists and has no assets3. Following requisite briefing, the Court decided to treat
Defendant’s brief (Doc. 203) as a motion for summary judgment on damages. On December 31,
2020, the Court granted Defendant’s motion for summary judgment on damages in the amount of
$1,041,531.74. Doc. 215.
DISCUSSION
I.
Pre-Judgment Interest
Defendant seeks an award of pre-judgment interest under NMSA 1978, § 56-8-3.4 State
law governs prejudgment interest. Stonebridge Life Ins. Co. v. Garcia, No. CV 10-582 MV/DJS,
2011 U.S. Dist. LEXIS 161269, 2011 WL 13112576, at *5 (D.N.M. Sept. 28, 2011). The purpose
of an award of prejudgment interest under NMSA 1978 §56-8-3 is to compensate a plaintiff for
the lost opportunity to use the money owed between the time the [party’s] claim accrued and the
time of judgment. Sunwest Bank of Albuquerque, N.A. v. Colucci, 1994- NMSC 027, ¶ 18, 117
N.M. 373, 377, 872 P.2d 346, 350 (1994).
Under the statute, prejudgment interest may be awarded “on money received to the use of
another and retained without the owner's consent.” NMSA 1978 §56-8-3(B). Although
prejudgment interest may be awarded in a federal case, it is generally not recoverable as a matter
of right and a court uses its discretion to determine whether an award of prejudgment interest
would serve to compensate the injured party. U.S. Indus., Inc. v. Touche Ross & Co., 854 F.2d
3 In its Response Brief to the instant motion, Plaintiff requests the Court consider that it is “now a defunct
company with no assets…” Doc. 209 at 3.
4 Defendant states that it does not seek prejudgment interest under § 56-8-4(B), which grants the court discretion to
allow interest “up to ten percent from the date of the complaint” after considering, among other things, (1) “if the
plaintiff was the cause of unreasonable delay in the adjudication of the plaintiff’s claims,” and (2) “if the defendant
had previously made a reasonable and timely offer of settlement to the plaintiff.” NMSA 1978, § 56-8-4(B); see also
Sunwest Bank, N.A., 1994-NMSC-027, ¶ 17.
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1223, 1257 (10th Cir.1988) (overruled on other grounds by Anixter v. Home–Stake Prod. Co., 77
F.3d 1215, 1231 (10th Cir. 1996)). Where, however, the amount owed is fixed and ascertainable,
prejudgment interest is awarded as a matter of right, “absent peculiar circumstances.” Sunwest
Bank of Albuquerque, N.A. v. Colucci, 1994-NMSC-027, ¶ 20; see State ex rel. Bob Davis
Masonry, Inc. v. Safeco Ins. Co. of Am., 1994-NMSC-106, ¶ 5, 118 N.M. 558, 560, 883 P.2d 144,
146 (noting that § 56-8-3 "allows prejudgment interest in cases proving money due by contract).
If the amount owed is not fixed and ascertainable, prejudgment interest may be awarded at the
court’s discretion. Taylor v. Allegretto, 1994-NMSC-081, ¶ 9, 118 N.M. 85, 87–88, 879 P.2d 86,
88–89.
Plaintiff’s Objections are without Merit
Plaintiff applies its objections equally to Defendant’s request for pre- and post-judgment
interest. Plaintiff first contends that the imposition of pre-judgment and post-judgment interest is
improper because the issue of Defendant’s entitlement to interest is “controlled by the Federal
Acquisition Regulations (FAR) and not state contracting law as alleged by Defendant,”
specifically, § 52.233-1(h). Doc. 209 at 3-4. Plaintiff next contends that even if the Court were to
accept Defendant’s position that state law applies, no interest is due because Defendant was the
first party to breach the underlying contract. Id. at 4. Lastly, Plaintiff argues that Defendant has
not proven, as it must, that Plaintiff ever received and retained monies from LANS for the relevant
invoices. Id. The Court rejects these baseless arguments as without merit or citation to case law.
As an initial matter, the Court need not say more than the FAR is inapplicable to the instant
matter. Plaintiff did not cite to any law providing that those regulations apply. Nor does § 52.233(1)
address pre- or post-judgment interest. Additionally, the Court finds Plaintiff’s second and third
4
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arguments incomprehensible as the Court has repeatedly determined that it was Plaintiff, not
Defendant, who breached the contract and that Plaintiff did in fact, as expressly admitted to by
Plaintiff’s Vice President Michael Bradshaw, invoice and collect payment from LANS for these
projects. See Docs. 167, 168, 188, 196, 202. The Court is wholly unconvinced by Plaintiff’s
repeated, conclusory efforts to relitigate the action, notably absent citation to relevant case law.
Accordingly, all that is left for the Court is to apply the requisite standards to determine
Defendant’s entitlement to pre- and post-judgment interest.
Defendant is entitled to prejudgment interest at a rate of 15% annually
Here, the amount due is readily ascertainable under the six billing invoices sent to
Plaintiff, as depicted in the following chart taken from Defendant’s brief:
Invoice Number
40007
40760
41537
42117
42619
43152
Invoice Date
March 10, 2015
April 13, 2015
May 18, 2015
June 17, 2015
July 14, 2015
August 11, 2015
Performance Period
February 2015
March 2015
April 2015
May 2015
June 2015
July 2015
Amount
$291,639.67
$297,806.54
$265,188.55
$144,810.86
$41,989.05
$97.07
Total: $1,041,531.74
Doc. 206 at 5.
The Court approves Defendant’s request for an award of prejudgment interest at the rate of
15% per year, calculated from the date of each outstanding invoice, which is the maximum rate
allowed on money due by contract and on money due upon the settlement of matured accounts
from the day the balance is ascertained under §56-8-3(A), (C). See Sunwest Bank of Albuquerque,
N.A. v. Colucci, 1994-NMSC-027, ¶ 24 (“In many—perhaps most—cases, the claimant will be
entitled to prejudgment interest at the fifteen-percent rate; and many of our cases have held that
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prejudgment interest, in the particular cases, was to be awarded ‘at the statutory rate.’ ”).
II.
Post-Judgment Interest
Defendant requests post-judgment interest under the federal post-judgment statute, 28
U.S.C. § 1961. The statute provides that:
(a) Interest shall be allowed on any money judgment in a civil case recovered in a
district court… Such interest shall be calculated from the date of the entry of the
judgment, at a rate equal to the weekly average 1-year constant maturity Treasury
yield, as published by the Board of Governors of the Federal Reserve System, for
the calendar week preceding.
28 U.S.C. § 1961(a).
An award of post-judgment is mandatory, and interest “shall be computed daily to the date
of payment . . . and shall be compounded annually.” § 1961(b); Bancamerica Commercial Corp.
v. Mosher Steel of Kansas, Inc., 103 F.3d 80, 81 (10th Cir. 1996); See Boston Old Colony Ins. Co.
et al v. Tiner Assoc., Inc., et al., 288 F.3d 222, 223 (5th Cir. 2002) (post-judgment interest is
calculated at the federal rate, while prejudgment interest is calculated under state law). As
previously discussed, Plaintiff has not advanced valid objections to the imposition of any pre- or
post-judgment interest. The Court concludes that Defendant is entitled to post-judgment interest
at the statutory rate in effect when the Judgment is entered by the Court, to accrue from the date
the Court enters the Order of Judgment. See Grimsley v. MacKay, 93 F.3d 676, 678 (10th Cir.
1996) (Post-judgment interest automatically accrues from the date of judgment even absent an
express statutory provision so providing or express inclusion in the judgment itself). In addition,
Defendant is entitled to post-judgment interest on the prejudgment interest award. See Kelley v.
City of Albuquerque, 2006 U.S. Dist. LEXIS 28782, 2006 WL 1305038, at *3 (D.N.M. Apr. 12,
2006) ("[T]he monetary award upon which postjudgment interest should accrue is the entire award
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granted by the district court, including the forthcoming award of prejudgment interest.") (citing
Bancamerica Commer. Corp. v. Mosher Steel, 103 F.3d at 82.
III.
Conclusion
The Court finds that Defendant is entitled to pre-judgment interest in the amount of fifteen
percent (15%) per annum from the date on which the unpaid invoices were due up to the date of
judgment. Defendant is also entitled to an award of post-judgment interest at the statutory rate in
effect when the Judgment is entered by the Court, to accrue from the date the Court enters the
Order of Judgment, as well as post-judgment interest on the pre-judgment interest award. The
Court will have the parties submit a proposed judgment after the remaining motions are ruled upon.
Upon receipt of that information the Court will enter a final Judgment.
THEREFORE,
IT IS ORDERED that Defendant’s Motion for Pre-Judgment and Post-Judgment Interest
(Doc. 206) is hereby GRANTED.
____________________________________
KEA W. RIGGS
UNITED STATES DISTRICT JUDGE
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