Opinion ID: 2602433
Heading Depth: 4
Heading Rank: 1

Heading: Only the legislature can authorize prejudgment interest awards against the state.

Text: [U]nless interest is specifically authorized by legislative enactment, it may not ordinarily be assessed against the State in any action. [13] In other words, only the legislature can waive the state's sovereign immunity and authorize an award of prejudgment interest against the state. The question here is whether the legislature authorized prejudgment interest awards in payment rate challenges. Alaska Statute 09.50.250 waives sovereign immunity and allows actionable claims against the state that sound in contract, quasi-contract, or tort. Alaska Statute 09.50.280 authorizes interest awards against the state for actions brought under section .250. We noted in Stewart & Grindle, Inc. v. State that [s]ince AS 09.50.250 and 09.50.280 were passed together and amended together by the same legislative act, it is clear that AS 09.50.280 was intended to afford a right to pre-judgment interest against the State only where AS 09.50.250 established a substantive cause of action. [14] Thus, this case turns on whether North Star brought or could have brought an action under section .250.