Opinion ID: 1122978
Heading Depth: 1
Heading Rank: 4

Heading: rosalia is entitled to prejudgment interest on the indemnity amount the trial court awarded.

Text: Rosalia asserts that it is entitled to prejudgment interest on the indemnity amount the trial court awarded. We agree. In Chenery, the Court pointed out that in 1980 Agri-lines, the party seeking indemnification, settled with the parties seeking damages for crop losses for a total of $177,000, $110,000 for the Spencers and $67,000 for Chenery. Following a jury trial in which the jury found Layne, the party from whom Agri-lines sought indemnification, totally responsible for the crop losses, the trial court in 1986 awarded Agri-lines $157,000 against Layne. Id. at 283, 766 P.2d at 753. This Court reversed the trial court's denial of prejudgment interest, stating as follows: We agree with the assertion that here the amount of the contested liability is liquidated, and hence an award of prejudgment interest is appropriate to compensate Agri-Lines for the loss of their money from 1980 to 1986. In the area of prejudgment interest, equitable principles are emphasized. As above noted, Agri-Lines was required to defend against the Chenery/Spencer action, and paid for the damages that were ultimately determined to be the fault of Layne. Under such circumstances, it is inequitable to deny Agri-Lines for the use of its money during the period of six years. Id. at 289, 766 P.2d at 759 (citations omitted). Although there was apparently no question about the reasonableness of the $177,000 settlement Agri-Lines made, the Court ruled that it was equitable that Layne pay prejudgment interest on the $157,000 that the trial court awarded to indemnify Agri-Lines. In the same sense as the Court's decision concerning prejudgment interest in Chenery, in the present case Rosalia was required to defend against the growers' action and paid for the damages that were ultimately determined to be the fault of Searle and McNabb. Therefore, Chenery dictates our decision in this case that it would be inequitable not to award Rosalia prejudgment interest.