Opinion ID: 1144149
Heading Depth: 2
Heading Rank: 6

Heading: whether gammill should have been awarded prejudgment interest from the date she filed suit

Text: ¶ 31. On cross-appeal, Gammill argues that the chancellor abused his discretion in choosing not to award prejudgment interest. It is well-settled that in Mississippi a chancellor is afforded discretion in deciding whether to award prejudgment interest. An award of prejudgment interest rests in the discretion of the awarding judge. Under Mississippi law, prejudgment interest may be allowed in cases where the amount due is liquidated when the claim is originally made or where the denial of a claim is frivolous or in bad faith. No award of prejudgment interest may rationally be made where the principal amount has not been fixed prior to judgment. Coho Res. v. McCarthy, 829 So.2d 1, 19-20 (Miss.2002) (quoting Warwick v. Matheney, 603 So.2d 330, 342 (Miss.1992)). See also Tupelo Redev. Agency v. Abernathy, 913 So.2d 278, 286 (Miss.2005). ¶ 32. Gammill argues that the Stockstills' denial of the claim in this case was in bad faith as they were aware that the land in question actually belonged to Gammill, and that the Stockstills therefore should not have cut the timber on the land. While it is true that the Stockstills were on constructive notice that further research was needed and they, as reasonably prudent people, should have been on inquiry, charged with facts which could be revealed in a diligent and careful investigation, this does not mean they acted in bad faith. Of course, what could have been revealed was that the Stockstills actually owned the land. They simply made the assumption, albeit erroneously, that the exception was superfluous. As noted above, our case law states when prejudgment interest may be appropriate, when it is clearly not allowed, and that determining whether to award such interest is in the discretion of the trial judge. We thus cannot find that the chancellor's findings were manifestly wrong, clearly erroneous, or the result of an application of the wrong legal standard. No abuse of discretion was committed. This issue is without merit.