Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_12-cv-00390/USCOURTS-azd-2_12-cv-00390-3/pdf.json

Nature of Suit Code: 190
Nature of Suit: Other Contract Actions
Cause of Action: 28:1332 Diversity-Breach of Contract

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WO

IN THE UNITED STATES DISTRICT COURT 

FOR THE DISTRICT OF ARIZONA 

Travelers Casualty and Surety Company of 

America, 

 Plaintiff, 

vs. 

W.P. Rowland Constructors Corp., et al. 

 Defendants. 

No. CV-12-00390-PHX-FJM

PARTIAL JUDGMENT 

 This court granted Plaintiff’s Motion for Partial Summary Judgment on Count I 

(doc. 80), and Plaintiff’s Motion for Partial Summary Judgment on Count II (doc. 81), 

and denied Defendants’ Motion for Reconsideration (doc. 110). Plaintiff now requests 

entry of judgment pursuant to Rule 54(b), Fed. R. Civ. P., on Counts I and II (doc. 114). 

Defendants object to the proposed form of partial judgment, arguing that the proposed 

form incorrectly states the amount of prejudgment interest allowed under Arizona law. 

 In diversity actions, state law determines the rate of prejudgment interest while 

federal law governs post-judgment interest. American Tel. & Tel. Co. v. United 

Computer Sys., Inc., 98 F.3d 1206, 1209 (9th Cir. 1996). A.R.S. § 44-1201(A) provides 

that “[i]nterest on any loan, indebtedness or other obligation shall be at the rate of ten 

Case 2:12-cv-00390-FJM Document 117 Filed 07/08/13 Page 1 of 4
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per cent per annum.” This action involves the collection on “indebtedness or other 

obligation.” Therefore, pursuant to § 44-1201(A), 10% is the appropriate interest rate 

on this debt before judgment is entered. In contrast, § 44-1201(B) expressly applies to 

“interest on any judgment.” Id. (emphasis added). Accordingly, subsection (B) 

provides the appropriate rate for post-judgment interest in a state action. But because 

federal law governs post-judgment interest in this diversity action, 28 U.S.C. § 1961 

dictates the rate of post-judgment interest. Section 44-1201(B) does not apply in this 

case. 

 Therefore, IT IS ORDERED AND ADJUDGED Plaintiff Travelers Casualty 

and Surety Company of America shall recover judgment on Count I and Count II of its 

Amended Complaint, in the amounts set forth below, against the following defendants: 

1. W.P. Rowland Constructors Corp. 

2. W.P. Rowland Properties Corp. 

3. RCCG Management, Inc. 

4. Rowland Companies-Western, Inc. 

5. Rowland Companies Southwest, Inc. 

6. Rowland Companies Central, Inc. 

7. Rowland Constructors Group, Inc. 

8. Rowland Companies Construction Group, Inc. 

9. Rowland Texas, G.P. 

10. Rowland Texas L.P. 

11. Rowland Companies Southeast, Inc. 

12. W.P. Rowland Enterprises, L.P. 

13. 8324 E. Hartford Drive, LLC 

14. William P. Rowland 

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15. Linda L. Rowland 

16. James B. Rowland 

17. Kimberly A. Rowland 

18. William P. Rowland and Linda L. Rowland, Trustees of the WLR Trust 

I 

19. James B. Rowland and Kimberly A. Rowland, Trustees of the BKR 

Trust I dated September 1, 2005 

IT IS FURTHER ORDERED that Plaintiff Travelers Casualty and Surety 

Company of America shall have judgment against the defendants 1-19 listed above, and 

each of them, jointly and severally, on Count I of the Amended Complaint in the 

principal sum of $626,411.34, plus pre-judgment interest thereon at the rate of ten 

percent (10%) per annum from August 16, 2012 through the date of entry of this 

Judgment. 

IT IS FURTHER ORDERED that Plaintiff Travelers Casualty and Surety 

Company of America shall have judgment against the defendants 1-19 listed above, and 

each of them, jointly and severally, on Count II of the Amended Complaint, and the 

defendants 1-19 listed above shall provide Plaintiff with collateral in the principal sum 

of $1,303,088.00, plus pre-judgment interest thereon at the rate of ten percent (10%) per 

annum from February 10, 2012 through the date of entry of this Judgment. Collateral 

may not be disbursed until indemnifiable claims are determined. The remainder of the 

collateral, if any, must be returned to defendants once all claims are satisfied. 

IT IS FURTHER ORDERED that post-judgment interest on the principal 

amounts set forth above shall accrue at the rate established by 28 U.S.C. § 1961 from 

the date this Judgment is entered until paid. 

... 

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 Pursuant to Rule 54(b), Federal Rules of Civil Procedure, the Court determines 

there is no just reason for delay of judgment as to less than all of the issues and all of the 

parties in this action, and hereby directs that this partial judgment be entered forthwith. 

 Dated this 8th day of July, 2013. 

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