Opinion ID: 782841
Heading Depth: 2
Heading Rank: 6

Heading: Interest and Expenses

Text: 23 The district court determined that OGSI was owed interest on the sum of $151,357.50 from April 9, 1999. As to the individual warrant holders, the district court found they were entitled to interest on the sum of $330,664.10 from January 1, 1998. 24 The district court also awarded OGSI expenses in the sum of $5,454.04 and attorneys' fees in the amount of $277,562.78. In support of its finding that OGSI had the right to attorneys' fees, the district court cited the indemnification provision contained in the Engagement Letter. Despite this, the district court directed the parties to appear before Magistrate Judge Douglas F. Eaton for final computation and/or confirmation of expenses, legal fees and interest. 25 After further briefing by the parties, Magistrate Judge Eaton issued a Report and Recommendation (Report) suggesting that the district court: (1) deny prejudgment interest and compute interest on attorneys' fees and expenses from July 23, 2001 (the date the district court decision was filed); and (2) provide post-judgment interest. The district court adopted the Report, except as to the date for the accrual of interest on attorneys' fees. The district court found that Hollander's obligation to pay attorneys' fees arose from his failure to deliver the warrants to OGSI. The court stated that under New York CPLR § 5001(a), pre-judgment interest was due on attorneys' fees actually paid by OGSI. Accordingly, the court measured pre-judgment interest from the date OGSI first paid its attorneys (June 9, 1998).