Opinion ID: 1708729
Heading Depth: 1
Heading Rank: 3

Heading: Interest Accrual Under Section 535.3.

Text: Finally, IGF argues that the trial court erred in requiring it to pay interest on its bond liability at the rate of ten percent per year from the commencement of the action. It maintains that interest on unliquidated damages runs from the date of judgment. See Vorthman v. Keith E. Myers Enterprises, 296 N.W.2d 772, 778 (Iowa 1980); Mrowka v. Crouse Cartage Co., 296 N.W.2d 782, 783-84 (Iowa 1980). The statutory amendment of section 535.3 (1979), however, increased the interest rate on judgments to ten percent and provided for the accrual of interest from the date of the commencement of the action. 2 Iowa Legis.Serv. 146 (West 1980). We have held the award of this interest obligatory on the trial court. Rowen v. LeMars Mutual Insurance Co of Iowa, 347 N.W.2d 630, 641 (Iowa 1984); Sheer Construction, Inc. v. W. Hodgman and Sons, Inc., 326 N.W.2d 328, 334 (Iowa 1982). This statute applies to all judgments entered after January 1, 1982, Janda v. Iowa Industrial Hydraulics, Inc., 326 N.W.2d 339, 344 (Iowa 1982), even where interest is not requested. Oskaloosa Food Products Corp. v. Aetna Casualty and Surety Co., 337 N.W.2d 521, 523 (Iowa 1983). The district court properly allowed interest from the date of the commencement of the action. Section 535.3 applies to the surety as well as to the principal. Mechanicsville Trust & Savings Bank v. Hawkeye-Security Insurance Co., 158 N.W.2d 89, 93 (Iowa 1968). We find no basis for reversal. AFFIRMED.