Opinion ID: 1791065
Heading Depth: 3
Heading Rank: 2

Heading: if prejudgment interest is due, what interest rate should apply?

Text: ¶ 12. American Guarantee claims that Fuselier's cause of action accrued prior to the enactment of Miss.Code Ann. § 75-17-7 (Supp.1989) and that Fuselier is not entitled to prejudgment interest. American Guarantee contends that the cause of action giving rise to American Guarantee's duty to pay for Fuselier's independent counsel arose in 1982 when American Guarantee chose to defend Fuselier under a reservation of rights. ¶ 13. Fuselier agrees that legal fees began to accrue in 1982. Fuselier does not respond to this assertion by American Guarantee in its reply brief, although they do assert in their original brief that they are due an award of prejudgment interest of 8% of the principal compounded monthly until June 30, 1989, in the amount of $51,433.24 (in accordance with § 75-17-7); and an award of prejudgment interest from July 1, 1989, until the present with interest due and owing calculated up to the date of judgment (in accordance with § 75-17-7 (2000)). ¶ 14. At the time this action accrued in 1982 § 75-17-7 appeared as enacted by the Mississippi Legislature in 1975: All judgments and decrees founded on any 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 and decrees shall bear interest at the rate of eight percentum (8%) per annum. This act shall apply only to judgments and decrees rendered on or after the effective date of this act. Judgments or decrees rendered prior to the effective date of this act shall continue to bear interest at the same rate as was applicable at the time the judgment or decree was rendered. 1975 Miss. Laws, ch. 336, § 1. ¶ 15. This statute was amended in 1989 to state: 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). At the time of the adoption of this amendment the Mississippi Legislature stated, [t]he provisions of this act shall apply only to causes of action accruing on or after July 1, 1989. 1989 Miss. Laws, ch. 311, § 7. ¶ 16. Because this action accrued in 1982, any prejudgment interest awarded would be at an interest rate of eight percentum (8%) per annum as was set out in § 75-17-7 and § 75-17-1(1) at the time this action arose.