Opinion ID: 1166970
Heading Depth: 2
Heading Rank: 7

Heading: Assessment of Interest on the Award for Just Compensation

Text: The trial judge established pre-judgment interest at six percent, but assigned an eight percent rate to post-judgment interest. Both parties appeal this decision. The state claims that post-judgment, as well as pre-judgment interest, should run at six percent under AS 09.55.440(a). The landowners argue that both pre-judgment and post-judgment interest should run at eight percent after September 12, 1976, the date the legislature changed the general legal rate of interest in the state to eight percent. While the parties appeared to eventually agree with the superior court's decision at trial, we conclude that the court committed plain error in not adopting the position the state asserts on appeal. The language of AS 09.55.440(a) unambiguously provides that the rate of judgment interest awarded under a declaration of taking proceeding such as this case will equal six percent for the time before and after judgment is entered: The judgment shall include interest at the rate of six per cent per year on the amount finally awarded which exceeds the amount paid into court under the declaration of taking. The interest runs from the date title vests to the date of payment of the judgment. [emphasis added] [28] The landowners point to the fact that the statute establishing the legal rate of interest and the statute providing for the rate of interest on judgments in general in Alaska have been amended to provide for a rate of eight percent. [29] They further point out that the higher rate now applies to eminent domain cases where the state condemns property under a complaint seeking condemnation and an order for possession, rather than a declaration of taking, by virtue of the AS 09.55.330 provision that the lawful rate of interest applies to judgments in the former cases. [30] The landowners argue that the legislature's failure to amend AS 09.55.440(a) to provide for eight percent interest was a clear oversight on the part of the legislature, and ask this court to remedy the mistake. We note the disparity between the interest rate specified in AS 09.55.440(a) and the other statutes mentioned. We also are concerned about the inequity in awarding a higher rate of interest on judgments obtained in one form of eminent domain proceeding than in another, as may result from the current provisions of AS 09.55.440(a) and AS 09.55.330. [31] We strongly urge the legislature to consider amending what appears to be a defect in the current statutory scheme. But we decline to repeal by judicial action the clear and unambiguous provision of an enactment of the legislature on the grounds that it must be an oversight. [32] A statute such as AS 09.55.440(a), specifically addressed to the subject of interest on judgments under a declaration of taking must take precedence over statutes pertaining to more general subject matter. Neither are the provisions of AS 09.55.440(a) irreconcilable with those pertaining to another form of eminent domain proceeding in AS 09.55.330. Absent more evidence that the legislature intended otherwise, we must presume the legislature was aware of the existence of AS 09.55.440(a) when it enacted amendments raising the rate of interest on judgments in other cases, and made a conscious decision not to amend AS 09.55.440(a). [33] The superior court should have, under AS 09.55.440(a), awarded interest at the rate of six percent on the award for the time both before and after judgment. The judgment of the superior court is AFFIRMED in part, MODIFIED in part, and REMANDED for a determination of costs in accordance with this opinion. BOOCHEVER, J., not participating.