Redbird Business Group, LLC et al v. Harrison

IN THE UNITED STATES DISTRICT COURT FOR THE
EASTERN DISTRICT OF OKLAHOMA
REDBIRD BUSINESS GROUP, LLC; 	)
REDBIRD BIOSCIENCE OKLAHOMA, 	)
LLC; and RB REALTYCO, LLC, 	)
)
Plaintiffs and 	)
Counter-Defendants, 	)
)
v. 	) 	Case No. CIV-20-098-JAR
)
MATTHEW HARRISON, 	)
)
Defendant and 	)
Counter-Claimant. 	)
OPINION AND ORDER
This 	matter 	comes 	before 	the 	Court 	on
Defendant/Counterclaimant’s 	Motion 	to 	Set 	Rate 	for 	Pre-Judgment
and 	Post-Judgment 	Interest 	(Docket 	Entry 	#177). 	This 	Court
conducted a hearing to receive oral argument on this Motion.
As an initial matter, it appears the parties are in agreement
that federal rate of interest should be imposed upon the judgment
awarded 	in 	this 	case 	for 	the 	period 	post-judgment. 	This 	would
appear to reflect the current state of the law. 	Soc'y of Lloyd's
v. 	Reinhart, 	402 	F.3d 	982, 	1004 	(10th 	Cir. 	2005)(“absent 	‘clear,
unambiguous and unequivocal [contractual] language’ expressing the
parties’ 	intent 	that 	a 	different 	post-judgment 	interest 	rate
apply, 	post-judgment 	interest 	is 	governed 	by 	federal 	law.”).
Therefore, 	post-judgment 	interest 	will 	accrue 	pursuant 	to 	28
U.S.C. § 1961(a).
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The 	parties 	have 	differing 	views 	as 	to 	the 	appropriate 	rate
of 	interest 	to 	be 	applied 	pre-judgment. 	Harrison 	contends 	that
New 	York 	law 	should 	set 	the 	rate 	of 	interest 	since 	pre-judgment
interest 	is 	an 	element 	of 	compensatory 	damages 	and 	New 	York 	law
governed 	the 	Employment 	Agreement 	which 	was 	the 	subject 	of 	the
dispute in this case. 	Based upon Harrison’s argument, the rate to
be applied would be set at the time of the breach of the contract
– January 30, 2020 – and would accrue at a rate of 9.00%
For their part, the Redbird entities contend that, since this
Court 	did 	not 	set 	out 	that 	pre-judgment 	interest 	was 	awarded, 	it
should not be a part of the judgment amount. 	Redbird also contends
Harrison 	did 	not 	request 	pre-judgment 	interest. 	Alternatively,
Redbird requests that this Court exercise discretion and apply the
Federal Funds rate from March of 2020 until March 31, 2023, which
according to Redbird ranges from 5.00% to 10.00%.
“Prejudgment 	interest 	is 	an 	element 	of 	compensatory 	damages
and is part of the actual damages sought.” Morrison Knudsen Corp.
v. Ground Improvement Techniques, Inc., 532 F.3d 1063, 1077 (10th
Cir.2008). As such, “‘the law governing compensatory damages also
governs 	prejudgment 	interest.’” 	Id. 	(quoting 	Johnson 	v. 	Cont'l
Airlines Corp., 964 F.2d 1059, 1064 (10th Cir. 1992)). 	It is clear
that New York law should apply in the determination of the rate of
pre-judgment interest.
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The 	fact 	Harrison 	did 	not 	seek 	pre-judgment 	interest 	in 	his
Counterclaim 	does 	not 	bar 	his 	current 	request. 	“Under 	New 	York
law, ‘prejudgment interest is normally recoverable as a matter of
right in an action at law for breach of contract.’” 	New England
Ins. 	Co. 	v. 	Healthcare 	Underwriters 	Mut. 	Ins. 	Co., 	352 	F.3d 	599,
606 (2d Cir. 2003) quoting Graham v. James, 144 F.3d 229, 239 (2d
Cir. 	1998). 	N.Y. 	C.P.L.R. 	5001(a) 	makes 	such 	interest 	mandatory
in providing that “interest shall be recovered. . . .” Id.
New York law does not appear to provide any discretion in the
rate of the interest charged. 	N.Y. C.P.L.R. 5004(a) sets the pre-
judgment interest rate at 9.00% per annum and this Court will set
the rate at that level.
Harrison 	provides 	a 	chart 	in 	his 	reply 	which 	indicates 	that
the 	award 	should 	be 	calculated 	at 	$100,078.13. 	This 	calculation
appears to be accurate and will be adopted by the Court.
IT 	IS 	THEREFORE 	ORDERED 	that 	Defendant/Counterclaimant’s
Motion 	to 	Set 	Rate 	for 	Pre-Judgment 	and 	Post-Judgment 	Interest
(Docket Entry #177) is hereby GRANTED. 	The pre-Judgment interest
rate is set at 9.00% per annum in accordance with the laws of the
State of New York. 	Based upon an application of this rate to the
judgment awarded, Counterclaimant Matthew Harrison is awarded pre-
judgment interest in the total amount of $100,078.13.
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IT IS SO ORDERED this 27th day of March, 2024.
______________________________
JASON A. ROBERTSON
UNITED STATES MAGISTRATE JUDGE
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