United States District Court, E.D. California
ORDER GRANTING PLAINTIFF'S MOTION TO AMEND THE
JUDGMENT TO AWARD PREJUDGMENT INTEREST AND COSTS
A. MENDEZ, UNITED STATES DISTRICT JUDGE.
October 21, 2019, the Court granted Zurich American Insurance
Company of Illinois's (“Plaintiff”) Motion
for Summary Judgment in its breach of contract claim against
Accuire, LLC. (“Defendant”). Order, ECF No. 20.
Less than a month after judgment was entered (Judgment, ECF
No. 21), Plaintiff filed a Motion to Amend the Judgment to
award prejudgment interest and costs. Mot. to Am. J.
(“Mot.”), ECF No. 25. Defendant did not file an
opposition to this motion. The Court GRANTS Plaintiff's
Motion to Amend the Judgment.
FACTUAL ALLEGATIONS AND PROCEDURAL BACKGROUND
parties are familiar with the events leading up to this
motion, as they were described in depth in the Court's
previously issued Order. See Order, ECF No. 20. They
will not be repeated here.
of prejudgment interest are governed by considerations of
fairness and are awarded when it is necessary to make the
wronged party whole. U.S. v. Cal. State Bd. of
Equalization, 650 F.2d 1127, 1132 (9th Cir. 1981)
(internal citations omitted). They are “intended to
compensate for the loss of use of money due as damages from
the time the claim accrues until judgment is entered.”
Barnard v. Theobald, 721 F.3d 1069, 1078 (9th Cir.
2013). In a case arising under federal law, they are left to
the discretion of the trial court. Bd. of Equalization, 650
F.2d at 1132. But state law generally governs awards of
prejudgment interest in diversity actions as
“prejudgment interest is a substantive aspect of a
plaintiff's claim, rather than a merely procedural
mechanism.” Oak Harbor Freight Lines, Inc. v. Sears
Roebuck, & Co., 513 F.3d 949, 961 (9th Cir. 2008)
(internal quotations and citation omitted).
breach of contract matter where the contract does not specify
the legal rate of interest, California law applies a ten
percent interest rate per year from the date of the breach.
Cal. Civ. Code § 3289(b). The agreement in this matter
does not specify the legal rate of interest (Totzke Decl.,
ECF No. 25-2, ¶ 9), so the ten percent interest rate
should be applied.
breach occurred on May 12, 2016, the day Defendant owed the
additional premium to Plaintiff. Totzke Decl. ¶ 6, Ex.
A, p. 5. The daily interest rate on the principal amount of
$491, 614.00 at ten percent per year is $134.69 per day. And
1, 257 days passed between the breach and the entry of
judgment. See Judgment, ECF No. 21. The daily
interest rate of $134.69 multiplied by 1, 257 days is $169,
the Court finds that Defendant owes Plaintiff $169, 305.33 in