Opinion ID: 1830892
Heading Depth: 1
Heading Rank: 9

Heading: cross appeal as to interest on judgments

Text: In his report dated February 22, 1982, the special master recommended that the judgments entered in favor of Lees bear interest at 6% per annum from the date Lees delivered his letter withdrawing from the partnership, i.e., October 26, 1977. Subsequent to the special master's report, but prior to the circuit court's entry of a final judgment on September 15, 1982, the Alabama Legislature enacted Act No. 82-443, 1982 Ala.Acts 696, amending § 8-8-10 to raise the interest on judgments from 6% per annum to 12% per annum. The act became effective on May 4, 1982. 1982 Ala.Acts 696. Hence, Lees argues that in view of Act No. 82-443, the judgments entered in his behalf should bear interest at 12% as opposed to 6% and that the circuit court erred by not modifying the recommendation of the special master when entering its final judgment. The consideration of the applicable rate of interest in this case warrants a discussion of the appropriate interest rate for prejudgment as opposed to postjudgment interest. Section 8-8-1 states: Except as otherwise provided by law, the maximum rate of interest upon the loan or forebearance of money, goods or things in action, except by written contract is $6.00 upon $100.00 for one year, and the rate of interest by written contract is not to exceed $8.00 upon $100.00 for one year and at that rate for a greater or less sum or for a longer or shorter time. The legislature otherwise provided by law that postjudgment interest, where no other rate is established by contract, should be 12% per annum. As amended, § 8-8-10 reads in relevant part: Judgments for the payment of money, other than costs, if based upon a contract action, bear interest from the day of the cause of action, at the same rate of interest as stated in said contract; all other judgments shall bear interest at the rate of twelve (12) percent per annum, the provisions of Section 8-8-1 of the Code of Alabama 1975 to the contrary notwithstanding; ... (Emphasis added). The legislature chose not to amend, but rather left unchanged, § 8-8-1, upon enactment and subsequent amendment of § 8-8-10. Utilizing the general rules of statutory construction, we cannot read § 8-8-10, as amended, as providing for 12% prejudgment interest. No statute otherwise provide[s] for prejudgment interest at any other rate than the legal rate. Consequently, the Court holds that where, as in this case, no written contract controls the interest rate, thereby precluding the 8% rate of 8-8-1, the legal rate of prejudgment interest is 6% per annum. See Southern Security Services, Inc. v. Esneault, 435 So.2d 1309 (Ala. Civ.App.1983). In this case, Lees is entitled to prejudgment interest of 6% from October 26, 1977, until the judgments were entered on September 15, 1982, and postjudgment interest of 12% thereafter.