Opinion ID: 1177128
Heading Depth: 1
Heading Rank: 4

Heading: brunzell's cross-appeal

Text: In addition to the issues raised on appeal by Eagle's Nest, respondent Brunzell presents several contentions on cross-appeal. At least one of these contentions has merit. Brunzell argues that the court erred in failing to award prejudgment interest. As appellant Eagle's Nest expressly concedes, Brunzell is correct. In Paradise Homes v. Central Surety, 84 Nev. 109, 437 P.2d 78 (1968), this court determined that prejudgment interest should be awarded in contract actions from the time the amount in question becomes due. As Brunzell is the prevailing party in this action, the contractor is entitled to prejudgment interest from the time the sums became due. There remains the question of what represents the appropriate rate of prejudgment interest to be applied in the instant case. Although Brunzell argues that NRS 108.237 [1] mandates that the contractor recover prejudgment interest at 12 percent per annum, the 12 percent per annum rate set forth in this statute was established by a 1981 amendment and applies only to causes of action which arose on or after July 1, 1981. See 1981 Nev.Stats. 1858-1859. However, the record in the instant case indicates that Brunzell was originally entitled to payment in 1979; thus, the contractor's cause of action arose well before July 1, 1981. The contractor is therefore entitled to prejudgment interest at the rate applicable before NRS 108.237 was amended, or seven percent per annum. See 1981 Nev.Stats. 1858-1859. In addition to prejudgment interest, Eagle's Nest concedes that NRS 108.237(3) establishes that Brunzell is also entitled to recover attorney's fees incurred in the instant action. Accordingly, this case is remanded to the district court with instructions that Brunzell be awarded appropriate prejudgment interest in the amount of seven percent per annum pursuant to NRS 108.237, and appropriate attorney's fees.