Opinion ID: 2634917
Heading Depth: 2
Heading Rank: 3

Heading: Prejudgment interest was properly denied.

Text: The Mailes also argue that the district court erred by not awarding prejudgment interest on all the money paid to the Trust from September 2002 until January 2004. They contend that pursuant to I.C. § 28-22-104(1), (2), (4), and (5), they are entitled to an award of prejudgment interest. The Taylors maintain that the Mailes are not entitled to prejudgment interest under equitable principles or pursuant to I.C. § 28-22-104. In its order denying the Mailes' claim for prejudgment interest, the district court stated: [The Mailes] are not entitled under I.C. § 28-22-104 ... to an award of prejudgment interest. The $400,000 does not constitute money due by express contract, or money after the same becomes due, or money lent, or money due on the settlement of mutual accounts from the date the balance is ascertained, or money due upon open accounts after three months from the date of the last item.... Nor did the [Taylors] retain the money without the express or implied consent of the [Mailes]. The Court finds that the [Mailes] are not entitled to pre-judgment interest under § 28-22-104. This Court reviews the award or denial of prejudgment interest for an abuse of discretion. Dillon v. Montgomery, 138 Idaho 614, 617, 67 P.3d 93, 96 (2003). A three factor test is used to prove an abuse of discretion: (1) whether the district court correctly perceived the issue as one of discretion; (2) whether the district court acted within the boundaries of this discretion and consistent with the legal standards applicable to the specific choices available to it; and (3) whether the district court reached its decision by an exercise of reason. Id. Idaho Code § 28-22-104(1) provides: When there is no express contract in writing fixing a different rate of interest, interest is allowed at the rate of twelve cents (12¢) on the hundred by the year on: 1. Money due by express contract. 2. Money after the same becomes due. 3. Money lent. 4. Money received to the use of another and retained beyond a reasonable time without the owner's consent, express or implied. 5. Money due on the settlement of mutual accounts from the date the balance is ascertained. 6. Money due upon open accounts after three (3) months from the date of the last item. The district court correctly found and stated the applicable legal standards and therefore did not abuse its discretion. It acted with the boundaries of its discretion and consistently with the applicable legal standards by examining each factor of I.C. § 28-22-104(1) as it applied to this case. Therefore, we affirm the district court's denial of prejudgment interest.