Diamond v. Bakay (In re Bakay)

Summarized by Brendan Mockler , U.S. Attorney's Office
14 years 2 months ago

Citation:

11-1372 (10th Cir. 2011)

Tag(s):

Ruling:

A plaintiff is not entitled to prejudgment interest at the federal rate when the plaintiff unduly delays filing suit against the defendant.

Procedural context:

Bankruptcy court denied plaintiff's request for prejudgment interest. BAP affirmed. 10th Circuirt now affirms.

Facts:

The Plaintiff loaned $100,000 to the defendant who promised to repay the loan, plus $100,000 of interest, in six months (in April 2005). The defendant failed to pay and subsequently filed a chapter 7 bankruptcy petition in November 2009. The Plaintiff sued the defendant seeking a determination that the debt is nondischargeable, and sought summary judgment. The bankruptcy court granted summary judgment in favor of the plaintiff. The plaintiff then filed a motion to amend the judgment to include prejudgment interest at the federal rate. The bankruptcy court denied the plaintiff's motion on equitable grounds -- that the plaintiff unduly delayed prosecuting the case.

Judge(s):

Briscoe, Murphy, and Matheson

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