Opinion ID: 1747404
Heading Depth: 1
Heading Rank: 7

Heading: Did the trial court err in awarding prejudgment interest?

Text: The chancellor awarded Keith prejudgment interest and stated in his conclusions of law: The plaintiff has requested and the Court finds that he is entitled to prejudgment interest since December 16, 1988, which is the last date any interest in excess of 16% was charged. Plaintiff waived any prejudgment interest prior to that time. An award of prejudgment interest is normally left to the discretion of the trial judge. Warwick v. Matheney, 603 So.2d 330, 341 (Miss. 1992). Under Mississippi law prejudgment interest may be allowed in cases where the amount due is liquidated when the claim is originally made, or where the denial of the claim is frivolous or in bad faith. Aetna Casualty & Surety Co. v. Doleac Electric Co., 471 So.2d 325, 331 (Miss. 1985). See Stanton & Associates, Inc. v. Bryant Constr. Co., 464 So.2d 499, 504 (Miss. 1985). Mississippi also acknowledges the judicial authority to award the prevailing party prejudgment interest in breach of contract suits. Warwick, 603 So.2d at 340. See City of Mound Bayou v. Roy Collins Construction Co., 499 So.2d 1354, 1361 (Miss. 1986). Further, Miss. Code Ann. § 75-17-7 (Supp. 1991) provides: 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 such judge to be fair but in no event prior to the filing of the complaint. Miss. Code Ann. § 75-17-7 (Supp. 1991) (emphasis added). The lower court computed prejudgment interest based on unequivocal data jointly supplied by Keith and the Bank. This data furnished the payment history of all the notes. One must remember that prejudgment interest is not imposed as a penalty for wrong doing; it is allowed as compensation for the detention of money overdue. Rubel v. Rubel, 221 Miss. 848, 75 So.2d, 59, 69 (1954). The Bank failed to demonstrate any abuse of discretion in the trial judge's decision to award prejudgment interest in this case.