Diamond v. Bakay (In re Bakay)

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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