Opinion ID: 1730429
Heading Depth: 3
Heading Rank: 8

Heading: Award of Contract-rate Interest and Attorney's Fees

Text: The court awarded Bird 18% interest and approximately $10,000.00 attorney's fees, both based on Johnny's credit agreement with Bird. First Federal and Linda challenge these awards on appeal, contending that the lien extends only to the cost of the goods plus the legal rate of interest. They rely in part on Security Transactions, Inc. v. Nelson Excavating and Paving Co., Inc., 55 Ala.App. 223, 314 So.2d 297 (1975), cert. denied, 294 Ala. 768, 314 So.2d 304 (1975). That case is readily distinguishable: the Court of Civil Appeals pointed out that there was no evidence of an agreement in the contract (which was oral) to pay attorney's fees. Since Johnny did sign an agreement to pay Bird 18% interest and attorney's fees for collection efforts, we affirm the trial court's award of these elements as part of the amount due on the materials supplied pursuant to the contract.