Opinion ID: 1164389
Heading Depth: 2
Heading Rank: 6

Heading: prejudgment interest on a verdict based on as 09.45.730

Text: Wrangell contends that it was error to award any prejudgment interest for the damages awarded under AS 09.45.730. Alternatively, it contends that the interest should be awarded only on the compensatory portion of the award, not the punitive portion. We agree with this latter contention. Wrangell's initial contention is based on Ventoza v. Anderson, 14 Wash. App. 882, 545 P.2d 1219, 1230 (Wash. App. 1976). In Ventoza, the court held that under a statute very similar to AS 09.45.730, prejudgment interest could not be awarded on either the compensatory or punitive portion of the treble damage award. We believe that holding sweeps too broadly. Punitive damages are not compensation for actual physical harm, and prejudgment interest is generally not awarded on punitive damages. Blake v. Grant, 65 Wash.2d 410, 397 P.2d 843, 845 (Wash. 1964). On the other hand, actual damages are compensatory and the interest on this award is of the same character. To refuse interest on the compensatory portion would be unfair to the injured party. Beech Aircraft Corp. v. Harvey, 558 P.2d 879, 888 (Alaska 1976). Consequently, we hold that prejudgment interest may be awarded on the compensatory portion of the award but not the punitive portion. [16]