McCarthy v. Aviance Marketing, Inc.

UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF COLUMBIA
In re
TITAN RESTAURANTS, INC.,
t/a Dakota Cowgirl,
Debtor.
____________________________
KEVIN R. McCARTHY, TRUSTEE,
Plaintiff,
v.
AVIANCE MARKETING, INC.,
Defendant.
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Case No. 06-00472
(Chapter 7)
Adversary Proceeding No.
08-10034
Not for Publication in
West’s Bankruptcy Reporter
MEMORANDUM DECISION RE PLAINTIFF’S MOTION FOR DEFAULT JUDGMENT
The plaintiff’s motion for default judgment seeks judgment:
in the amount of $12,663.66, plus interest compounded
annually at the prime rate of 4.0% from the [service]
date of December 10, 2008 and at the prime rate on each
anniversary date thereafter as reflected in the Federal
Reserve Statistical Release, plus costs of $250.
Instead, the court will issue a default judgment that will award
judgment:
in the amount of $12,663.66, plus interest at the prime
rate of 4.0% from the service date of December 10,
2008, until the date of entry of this judgment, plus
The decision below is signed as a decision of
the court.
Signed: March 17, 2009.
_____________________________
S. Martin Teel, Jr.
United States Bankruptcy Judge
Case 08-10034 Doc 7 Filed 03/17/09 Entered 03/17/09 13:23:33 Desc Main
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1 	See In re Greater Southeast Commun. Hosp. Corp. I, 2006
WL 1174332 at *1 (“[P]rejudgment interest runs until the entry of
the judgment and, with the principal obligation and any costs
taxed, becomes part of the judgment amount upon which interest
then runs from the date of entry of the judgment as provided by
28 U.S.C. § 1961.").
2	O:\TEEL\Judge Temp Docs\McCarthy v Aviance (In re Titan Restaurants) Mem Decsn re MFDJ.wpd
costs of $250, together with interest on the total
judgment from the date of entry of this judgment as
specified by 28 U.S.C. § 1961.
As this court observed in Alberts v. Mac (In re Greater Southeast
Commun. Hosp. Corp. I), 2006 WL 1174332 *1 (Bankr. D.D.C. Apr.
28, 2006):
prejudgment interest is generally at the prime rate,
not at the rate specified by § 1961. 	See Webster v.
Harris Corp. (In re NETtel Corp.), 327 B.R. 8 (Bankr.
D.D.C. 2005). Moreover, given the short-term nature of
the loans that a prime rate covers, it is appropriate
to compute interest at the prime rate on an annual
basis. 	See In re NETtel Corp., 327 B.R. at 13-14. 	See
also Esser v. First Fed. Fin. Services, Inc. ( In re
Carini), 245 B.R. 319, 326 (Bankr. E.D. Wis. 2000)
(“The plaintiff is also entitled to pre-judgment
interest ... computed annually....”).
[Emphasis added.] 	But that passage addressed prejudgment
interest, not postjudgment interest. 	Once prejudgment interest
is computed to arrive at the judgment amount as of the date of
entry of the judgment, postjudgment interest is governed by 28
U.S.C. § 1961, not the prime rate. 1
[Signed and dated above.]
Copies to: All counsel of record; Office of United States
Trustee.
Case 08-10034 Doc 7 Filed 03/17/09 Entered 03/17/09 13:23:33 Desc Main
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