Opinion ID: 879426
Heading Depth: 1
Heading Rank: 5

Heading: Was the rate of prejudgment interest properly entered?

Text: The District Court awarded interest on the amount of the judgment at the rate of 10% per annum from December 1979. Defendants state the legal rate of interest should be governed by § 31-1-106, MCA (1979), as that law appeared at the time of the Springer-Crosswinds Enterprise dealings. The rate of interest provided at that time was 6%. In 1985, the legislature amended the statute and provided for an interest rate of 10%. 1985 Mont. Laws 263. Defendants contend that if any portion of the trial court judgment is affirmed, the interest on that judgment amount should be only 6% per annum from November 1979 until judgment was entered. We find the newly provided interest rate should be applied as of the date the law became effective. The session law, 1985 Mont. Laws 263, indicates no effective date. Section 1-2-201, MCA, indicates an effective date of October 1, 1985 unless the legislation provides otherwise or is an appropriation of public funds for a public purpose. Therefore, we hold the applicable interest rate is 6% until October 1, 1985, and 10% thereafter. See, Byrne v. Terry (Mont. 1987), 741 P.2d 1341, 44 St.Rep. 1620, 1624. We remand to the District Court for the correction of the percentage rate on the award of prejudgment interest. For the foregoing reasons, the District Court's decision is affirmed on all of the remaining issues. TURNAGE, C.J., and WEBER, HUNT, GULBRANDSON, SHEEHY and McDONOUGH, JJ., concur.