United States District Court, W.D. Louisiana, Monroe Division
ROBERT G. JAMES, District Judge.
Pending before the Court is a Motion to Set Pre-Judgment Interest [Doc. No. 662] filed by Defendant American Guarantee & Liability Insurance Co. ("AGLIC"). Plaintiff Hollybrook Cottonseed Processing, LLC ("Hollybrook") opposes the motion. [Doc. No. 673]. AGLIC has filed a reply memorandum in support of the motion. [Doc. No. 678].
Having fully reviewed the memoranda and case law, for the following reasons, AGLIC's Motion to Set Pre-Judgment Interest is GRANTED.
I. Facts and Procedural History
This case was originally tried before a jury in June, 2011, resulting in a verdict in favor of Hollybrook on its redhibition claim. [Doc. No. 459]. Judgment was entered on July 8, 2011. [Doc. No. 480]. On March 22, 2012, Judge Elizabeth Foote issued a Memorandum Order granting Hollybrook's Motion for New Trial on the Issue of Damages only. [Doc. No. 508]. Judge Foote then recused, and the case was reassigned to Judge Donald Walter.
Judge Walter conducted a second trial on damages only. The jury rendered a verdict on April 5, 2013, awarding damages to Hollybrook on its redhibition claim in the amount of $6, 070, 000.00. Of that award, $3, 570, 000.00 was designated on the verdict form for "Lost profits, " $381, 042.00 was designated for the purchase price of the equipment, and $2, 500, 000.00 was designated for "Other compensatory damages, ... excluding lost profits and purchase price of the equipment." [Doc. No. 596].
On December 27, 2013, after applying a stipulated credit amount $4, 000, 000.00, Judge Walter entered judgment in favor of Hollybrook and against AGLIC in the amount of $2, 070, 000.00 on the award of lost profits and other compensatory damages. [Doc. No. 603]. Judge Walter denied an award of attorney's fees to Hollybrook.
Both parties timely appealed to the United States Court of Appeals for the Fifth Circuit. AGLIC appealed Judge Foote's granting of a new trial on damages and the determination on summary judgment that its policy provided coverage. Hollybrook appealed the denial of attorney's fees.
On appeal, the Fifth Circuit affirmed in part, reversed in part, and remanded for further proceedings. The Fifth Circuit affirmed the district court's granting of a new trial on damages and its coverage determination, but reversed the district court's denial of attorney's fees to Hollybrook. The Fifth Circuit then remanded for further proceedings to determine the amount of attorney's fees and if some or all of those fees are excluded under the work/product exclusion of the policies. The mandate issued on January 7, 2015.
On or about January 23, 2015, AGLIC tendered payment to Hollybrook in the total amount of $2, 296, 788.02, consisting of the judgment amount of $2, 070, 000.00, court costs in the amount of $47, 326.51, and judicial interest in the amount of $179, 461.51. The judicial interest included all post-judgment interest, but the payment of pre-judgment interest was based only on the award of other compensatory damages. [Doc. No. 662, p. 2].
On February 5, 2015, AGLIC filed the instant motion. AGLIC contends that Hollybrook is not entitled to recover pre-judgment interest on the portion of the judgment attributable to lost profits. Specifically, AGLIC contends that Hollybrook is not entitled to recover pre-judgment interest on lost future profits. Since the jury's award of damages of lost profits did not distinguish between the types of lost profits awarded, and Hollybrook did not appeal the listing of "lost profits" as a single category on the verdict form, AGLIC argues that Hollybrook cannot recover pre-judgment interest on any portion of the damages award attributable to lost profits.
Hollybrook opposes AGLIC's motion. Hollybrook argues that this lawsuit was brought under state redhibition law and that, under Louisiana law, it is entitled to recover pre-judgment interest from the original breach of contract or, at the least, from the date of judicial demand. Hollybrook contends that the precedent establishes its entitlement to pre-judgment interest, without regard to whether the lost profits were future or past. Finally, Hollybrook argues that AGLIC's reliance on federal case law is misplaced when this issue is one of interpretation of state law.
In a reply memorandum, AGLIC does not dispute that pre-judgment interest is generally awarded in a redhibition case. Instead, AGLIC points out that there are no Louisiana cases discussing the award of pre-judgment interest on future lost profits, and, thus, the ...