Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_96-mc-00081/USCOURTS-azd-2_96-mc-00081-7/pdf.json

Nature of Suit Code: 999
Nature of Suit: other
Cause of Action: Civil Miscellaneous Case

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WO

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

In re:

Western United Nurseries, Inc., an

Arizona corporation,

Debtor. _________________________________

In re:

Western Group Nurseries, Inc., an Arizona

corporation,

Debtor. _________________________________

Western Group Nurseries, Inc., an Arizona

corporation, 

Plaintiff, 

vs.

Charles L. Leemon,

Defendant. 

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No. MC 96-0081-PHX-SMM

No. MC 96-0082-PHX-PGR (consolidated)

No. MC 96-0083-PHX-SMM (consolidated)

Br. No. 92-3004-PHX-GBN

Br. No. 92-3005-PHX-RGM

 (jointly administered under 92-3004)

Adv. No. 94-126

Adv. No. 94-185

Adv. No. 94-813

ORDER/SECOND AMENDED

JUDGMENT

In its Order granting in part Defendant Charles L. Leemon’s (“Leemon”) motion to amend

the judgment, the Court granted Leemon’s request that the order of judgment entered

September 27, 2007 (Dkt. 59) be amended with respect to the compounding of interest (Dkt.

79). The Court’s initial judgment provided for interest to be compounded semi-annually. 

(Dkt. 59 (“Original Judgment”).) After reviewing Defendant’s motion to amend the

Case 2:96-mc-00081-SMM Document 91 Filed 03/17/08 Page 1 of 3
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1

 Under New York law an interest rate specified in a contract, not the statutory rate,

governs until payment of the principal or until the contract is merged in a judgment.

Agriculver Profit Sharing Plan v. Dryden Mut. Ins. Co., 535 N.Y.S.2d 797, 814 (N.Y. App.

Div. 1988).

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judgment, the Court found it erred in providing for semi-annual compounding of interest, and

determined that interest shall be compounded annually. (Dkt. 79.) The Court issued an

Order amending the judgment to provide for annual compounding of interest. (Dkt. 80

(“Amended Judgment”).)

Leemon subsequently filed a motion pursuant to Federal Rule of Civil Procedure 60(a),

requesting the Court correct a clerical mistake in the Amended Judgment. (Dkt. 81.) Having

determined that prejudgement interest should accrue at the statutory rate of interest specified

by New York law, the Court erred in providing for interest to compound annually, rather than

accrue by simple interest. Leemon requests that the Court amend the judgment to provide

for simple interest at a rate of nine percent per annum.

Plaintiff Western Group Nurseries, Inc. (“Western”) filed a response to Leemon’s motion

and cross-motion to reinstate the Original Judgment. (Dkt. 82, Pl.’s Resp.) Western asserts

that the Court should treat all limited partners the same on the interest issue, including

Leemon. Western further asserts that the Amended Judgment is internally inconsistent

because it recognizes that New York substantive law applies to interest but fails to apply the

contract rate of interest.1

 These arguments having been raised in response to Leemon’s first

motion to amend or alter the judgment (see Dkt. 68, Pl.’s Resp. at 5-7), the Court reaffirms

its determination that the “New York prejudgment interest rate” in this case is the statutory

rate of nine percent per annum. Western agrees that the New York statutory rate provides

for simple interest. (Dkt. 82, Pl.’s Resp. at 11-12.) 

The Court will further amend the judgment previously entered at Docket 59 and replace

the judgments previously entered at Dockets 59 and 80. The Court regrets any confusion

caused by these amendments. Accordingly, 

//

Case 2:96-mc-00081-SMM Document 91 Filed 03/17/08 Page 2 of 3
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IT IS HEREBY ORDERED granting Defendant Leemon’s motion to alter or amend

the Amended Judgment (Dkt. 81).

IT IS FURTHER ORDERED that, per the Court’s Memorandum of Decision and

Order dated September 14, 2007 (Dkt. 57) and Order dated January 9, 2008 (Dkt. 79), and

pursuant to Rule 54(b) of the Federal Rules of Civil Procedure, judgment is granted in favor

of Plaintiff Western Group Nurseries, Inc. Plaintiff shall recover from Defendant Charles

L. Leemon the sum of $130,000.00 plus interest at the rate of 9% per annum from

December 4, 1986 until the date of judgment, less credits against such amounts as follows:

(1) December 4, 1986 - $11,764.71; (2) October 27, 1993 - $17,352.94; and (3) December

19, 1995 - $10,882.36. Post-judgment interest shall accrue on such amounts at the rate of

4.11%, as provided in 28 U.S.C. § 1961.

IT IS FURTHER ORDERED that any award of attorneys' fees and costs shall be

the subject of a separate judgment, after further proceedings, per the Court's order and as

provided in Rule 58(c), of the Federal Rules of Civil Procedure.

IT IS FURTHER ORDERED denying as moot Leemon’s motion for leave to file

sur-reply (Dkt. 88).

DATED this 17th day of March, 2008.

Case 2:96-mc-00081-SMM Document 91 Filed 03/17/08 Page 3 of 3