Court Opinion

ID: 9529936
Source: CourtListenerOpinion
Date Created: 2023-08-07 03:55:40.000851+00
Date Added: 2024-06-11T13:27:57.464186
License: Public Domain

Baker, C.J.
(dissenting) — I respectfully dissent from that portion of the majority’s opinion which holds that trial courts may suspend prejudgment interest in liquidated damage cases on equitable grounds.
As discussed by Judge Pro Tempore Marshall Forrest in his concurring opinion in Ernst Home Center, Inc. v. Sato, 80 Wn. App. 473, 910 P.2d 486 (1996), in Washington the right to prejudgment interest on a liquidated damage case has been uniformly applied. The effect of the majority’s opinion on this issue is to create major uncertainty and confusion by allowing "suspension” of this right on the amorphous grounds of "equity.” In my opinion, a settled proposition of law should not be so severely undermined without strong justification.
The reasons given by the majority for upsetting heretofore settled law in Washington are not convincing. The majority purports to agree with, then ignores, the proposition that prejudgment interest on a liquidated claim is an element of damages grounded in sound public policy, and not a penalty imposed on a defendant for wrongdoing. Majority at 240. If a defendant wishes to protect itself against the prejudgment interest rate provided by statute, all the defendant need do is pay into the registry of the court that amount which the defendant believes is the proper judgment amount. By doing so, prejudgment interest is tolled on the amount deposited.
The facts of this case do not provide any justification for a decision marking a fundamental shift in settled law. As the majority acknowledges, no question of frivolousness or bad faith is present in this case. We are dealing with a case of one party arguing an incorrect legal standard to the trial court. If that is to be a basis for suspending the *249settled rule entitling the prevailing party to prejudgment interest on a liquidated damages case, I fear we are left with no rule at all.