Preverdict InterestThomas Tripodianos
August 18, 2008 — 1,222 views
Question. On July 1st the parties entered into a contract under which Supplier agreed to provide Builder over the course of two years, various building supplies needed for a multi-unit development. Supplier provided Builder with materials on various dates between September 27th and November 20th but failed to do so thereafter. Builder seeks to fix the date of interest as of July 1, the contract date. Supplier, in turn, argues that interest should be computed on a monthly basis between December of the first year and December of the second year or from January 1, of the second year, the intermediate date of the contract. What's the correct date?
Answer. It depends on how the judge feels that day. The statute vests the court with broad discretion in determining a reasonable date from which to award interest
CPLR 5001(b) provides that in a case like this where damages are incurred at various points in time, pre-verdict interest "shall be computed upon each item from the date it was incurred or upon all of the damages from a single reasonable intermediate date".
In the case at hand, January 1st, is the approximate halfway point between the time that Builder initially began to incur damages due to Supplier's breach of the contract and the time that Builder ceased to incur damages due to the expiration of the contract. Arguably, the selection of this date makes logical sense under the facts of this case.
Thomas S. Tripodianos received a Bachelor of Arts degree from St. John's University with a major in Government and Politics and dual minors in Philosophy and Psychology. He went on to obtain a Juris Doctor from Hofstra University School of Law. He is admitted to practice law in the State of New York, as well as the U.S. District Court for the Northern, Southern and Eastern Districts with admission pending in the State of Pennsylvania, and the State of Massachusetts.