Opinion ID: 1624114
Heading Depth: 1
Heading Rank: 2

Heading: application of mid-county

Text: Mid-County contends that it is entitled to prejudgment interest at the rate of 9 percent per annum, or alternatively 6 percent, on the awards in its favor. Interest is claimed from March 6, 1976, alleged to be the date all work in connection with the subcontracts was completed, until March 14, 1978, the date of the trial court's judgment. Prejudgment interest is recoverable as a matter of right when an ascertainable sum of money is determined to have been due and payable at a definite date prior to judgment. Howze v. Surety Corp., 584 S.W.2d 263, 268 (Tex.1979). In its brief to the court of civil appeals, Mid-County contended that it was undisputed that March 6, 1976, was the date the entire job was completed. The court of civil appeals noted that this statement was not challenged by Miner-Dederick. Under this state of the record, Mid-County is entitled to prejudgment interest on the $2090.64 award for extras found by the jury, from March 6, 1976, to March 14, 1978. See Black Lake Pipe Line Co. v. Union Construction Co., 538 S.W.2d 80, 95-96 (Tex.1976). The court of civil appeals correctly stated that the proper rate of prejudgment interest is 6 percent per annum. In Pecos County State Bank v. El Paso Livestock Auction Co., 586 S.W.2d 183 (Tex.Civ.App.  El Paso 1979, writ ref'd n. r. e.), the court stated: [I]n 1975 the Legislature amended Article 5069-1.05, Tex.Rev.Civ.Stat.Ann., and fixed the usual rate of interest on judgments in this State at the rate of 9% per annum while leaving Article 5069-1.03 unamended at 6%.... As we understand it, the recovery of prejudgment interest where sought at common law as an element of damages was fixed at 6% because the courts by analogy adopted the legal rate of interest fixed by the statute as the standard by which to be governed in assessing those damages for the detention of money. Watkins v. Junker, 90 Tex. 584, 40 S.W. 11 (1897). That was the statutory predecessor to Article 5069-1.03 which is still at 6%. By Article 5069-1.01(b) `[l]egal interest' is still defined as that interest which is allowed by law when the parties to a contract have not agreed on any particular rate, and that is still the 6% as determined by Article 5069-1.03. Id. at 187.