Opinion ID: 2380307
Heading Depth: 3
Heading Rank: 2

Heading: Whether Section 56-8-4(A) or Section 1961 Establishes the Proper Rate of Interest

Text: {21} Having found that ACP is entitled to an award of post-judgment interest, we next consider what rate of interest is to apply. Section 56-8-4(A) and Section 1961 each provide for a distinct rate of interest. Section 56-8-4(A) calculates interest at the rate of eight and three-fourths percent per year. By contrast, Section 1961 provides for interest at a floating 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 the date of the judgment. (Footnote omitted.) ACP and NMTLA contend that Section 56-8-4(A)'s static 8 3/4% rate, as opposed to the floating federal rate specified in Section 1961, is applicable. {22} We note that if the rate dictated by Section 1961 is to apply, it does not apply directly. See 28 U.S.C. § 1961(c)(4); Gaulin, 505 N.E.2d at 901 (noting that Section 1961 cannot be directly invoked in state court). Rather, Section 1961's rate may be applicable by means of the exception provided in Section 56-8-4(D), as law which otherwise provides for post-judgment interest against the state and its political subdivisions. The question, therefore, is whether to apply the 8 3/4% rate contained in Section 56-8-4(A) or to apply Section 1961's floating rate incorporated by reference in Section 56-8-4(D). {23} When faced with two provisions addressing the same topic, we resort to a familiar principle of statutory construction: a statute dealing with a specific subject will be considered an exception to, and given effect over, a more general statute. Stinbrink v. Farmers Ins. Co. of Ariz., 111 N.M. 179, 182, 803 P.2d 664, 667 (1990); accord Schultz ex rel. Schultz v. Pojoaque Tribal Police Dep't, 2010-NMSC-034, ¶ 14, 148 N.M. 692, 242 P.3d 259. {24} Section 56-8-4 is structured such that subsection (A) provides 8 3/4% as the general rate of post-judgment interest and subsequent provisions govern special circumstances. For instance, where judgment is rendered on an instrument bearing a particular rate of interest or where tortious or willful conduct is involved, the general 8 3/4% rate provided in subsection (A) does not govern. See § 56-8-4(A). Likewise, Section 56-8-4(D) also governs a special circumstancewhere post-judgment interest is sought from the state or its political subdivisions. Specific provisions govern over general provisions. See Schultz, 2010-NMSC-034, ¶ 14, 148 N.M. 692, 242 P.3d 259. Because subsection (D) governs a special circumstance, where post-judgment interest is sought from a government defendant, it acts as an exception to the general rule of subsection (A). Accordingly, the floating rate for federal actions set out in Section 1961 and incorporated by reference in subsection (D) controls. {25} We note that other jurisdictions have applied the post-judgment interest rate defined by Section 1961 instead of the rate defined by state law in order to preserve the uniformity of federal remedies. See Militello v. Ann & Grace, Inc., 411 Mass. 22, 576 N.E.2d 675, 679 (1991) (applying the Section 1961 rate in a case brought under federal maritime law [b]ecause of the need for consistency); Turner v. CSX Transp., Inc., 23 Misc.3d 527, 878 N.Y.S.2d 543, 545 (Sup.Ct. 2009) (applying federal post-judgment interest rate in a Federal Employer's Liability Act case in order to promote uniformity of federal remedy); see also Garrow v. Conn. Gen. Life Ins. Co., 456 Pa.Super. 735, 691 A.2d 943, 945-46 (1997) (applying federal law to determine pre judgment interest rate in a federal Employee Retirement Income Security Act case). Interpreting Section 56-8-4(D) to reference the floating federal interest rate ensures uniform results under Section 1983 in this state. Litigants will receive the same award of post-judgment interest regardless of whether they proceed in state or federal court.