Opinion ID: 1712735
Heading Depth: 1
Heading Rank: 5

Heading: was prejudgment interest mandatory?

Text: In actions for conversion, it is generally recognized that interest on the value of the property converted may be recovered from the date of conversion to the date of trial. The purpose of the award is to compensate the plaintiff for the loss sustained because of the taking of the property. Interest on the amount recovered may be allowed as a matter of right or by virtue of statutory provision. 18 Am.Jur.2d § 121. Under SDCL 21-3-3, supra, Rensch had the option of having his damages measured either by the market value of the converted rings with interest, or by the highest value of the rings without interest. Kennel v. Atlas Elevator Co., 34 S.D. 101, 103, 147 N.W. 272 (1914). Based upon Rensch's election under section (1) of the statute, the trial court awarded him prejudgment interest at the rate of 18% from the time of the conversion, i.e., October 28, 1982, until the time of entry of judgment. In light of the guidelines set forth in SDCL 21-3-3(1), we find no abuse of discretion. FOSHEIM, C.J., and MORGAN and HENDERSON, JJ., concur. WUEST, J., concurs specially.