Opinion ID: 1846461
Heading Depth: 2
Heading Rank: 5

Heading: awarding prejudgment interest.

Text: ¶ 56. After the judgment, McCarthy and the Stroos filed a motion for prejudgment interest. At the hearing on the motion, the trial judge stated: THE COURT: Okay. We'll do the prejudgment interest first, I guess, and I have a shortcut method of doing that. And y'all can tell me if its wrong, but I look at the complaint, and if the complaint asked for prejudgment interest, my policy has been to grant it. ¶ 57. And he did. Coho and Cockrell argue that the decision was arbitrary on its face because the judge did not even consider any of the specific circumstances under which Mississippi law recognizes a party's right to prejudgment interest, and thus the trial judge abused his discretion. We agree. Moreover, even if the judge had not abused his discretion, the statute, as interpreted by this Court, warrants determination that prejudgment interest was not proper. Pursuant to statute: All judgments or decrees founded on any sale or contract shall bear interest at the same rate as the contract evidencing the debt on which the judgment or decree was rendered. All other judgments or decrees shall bear interest at a per annum rate set by the judge hearing the complaint from a date determined by such judge to be fair but in no event prior to the filing of the complaint. Miss.Code Ann. § 75-17-7 (2000). This Court has interpreted the statute as follows: An award of prejudgment interest rests in the discretion of the awarding judge. Under Mississippi law, prejudgment interest may be allowed in cases where the amount due is liquidated when the claim is originally made or where the denial of a claim is frivolous or in bad faith. No award of prejudgment interest may rationally be made where the principal amount has not been fixed prior to judgment. Warwick v. Matheney, 603 So.2d 330, 342 (Miss.1992)(internal citation omitted)(emphasis added). ¶ 58. In the case sub judice, the principal amount was not fixed prior to judgment; therefore no award of prejudgment interest could rationally be made and it was an abuse of discretion for the trial judge to do so. We reverse and render the award of pre-judgment interest.