Ralph Olsewski v. III (2011)

JUDGMENT AFTER HEARING IN DAMAGES

This is an action on a promissory note.   On December 14, 2010, the court, Domnarski, J., granted the plaintiff's motion for summary judgment and held that:  “There is no genuine issue of material fact as to the defendant James F. Jordan III's liability to the plaintiff for the full amount due under the note.   The plaintiff is entitled to judgment as a matter of law.   Because there is not agreement on issues pertaining to statutory interest and or attorneys fees, this case should be claimed to the hearing in damages list to establish the amount of the judgment.”   A hearing in damages was held on March 21, 2011 at which time both the plaintiff and the defendant appeared and were heard.   After a review of the testimony and the exhibits presented the court enters judgment as follows:  It is undisputed that the balance due on the note as of April 1, 2009 was $98,818.85 and no payments have been made since that time.   As to the claim for interest, the note provides for an interest rate of one percent (1%).   This rate would be the applicable rate up to the time this suit was brought by writ dated October 2, 2009.   The court need not apply the provisions of General Statutes § 37–1 ¹ since that statute applies only where there is no agreement as to the rate of interest.   The amount of interest due from April 1, 2009 to October 2, 2009, based on the 1% interest rate, is $478.68.   As to the amount of interest from the date of commencement of the action to the date of judgment, pursuant to Winsted Savings Bank v. Town of New Hartford, 78 Conn. 319 (1905), the recovery of interest for this period is “in the nature of damages for breach of contract” Id., 323, and is not governed by the note.  General Statutes § 37–3a ² allows for the recovery of interest at the rate of ten per cent as damages for the detention of money after it becomes payable.   It is within the discretion of the court to award interest where money has been unlawfully withheld.  Sosin v. Sosin, 300 Conn. 205 (2011).   Here it has been found that the defendant owes the plaintiff the money due under the note and has not paid it.   Therefore the court orders interest at the rate of ten percent (10%) from October 3, 2009 to April 6, 2011.   That amount totals $14,905.17 (18 months at $823.49 per month plus 3 days at $27.45 per day).

The note also provides for an award of attorneys fees.   The defendant did not contest the hourly rate charged.   The court has reviewed the records submitted and the amount of hours claimed is found to be reasonable.   Therefore attorneys fees are awarded to the plaintiff in the amount of $12,737.23.

Judgment shall enter for the plaintiff and against the defendant in the amount of $98,818.85 plus interest in the amount of $15,383.85, attorneys fees in the amount of $12,737.23, and costs in the amount of $1,195.11, for a total of $128,135.04.   Interest at the rate of 10%, pursuant to General Statutes § 37–3a, is allowed from the date of judgment on any unpaid balance.

Jane S. Scholl, J.

FOOTNOTES

FN1. General Statutes § 37–1 provides:  “(a) The compensation for forbearance of property loaned at a fixed valuation, or for money, shall, in the absence of any agreement to the contrary, be at the rate of eight per cent a year;  and, in computing interest, three hundred and sixty days may be considered to be a year. (b) Unless otherwise provided by agreement, interest at the legal rate from the date of maturity of a debt shall accrue as an addition to the debt.”.  FN1. General Statutes § 37–1 provides:  “(a) The compensation for forbearance of property loaned at a fixed valuation, or for money, shall, in the absence of any agreement to the contrary, be at the rate of eight per cent a year;  and, in computing interest, three hundred and sixty days may be considered to be a year. (b) Unless otherwise provided by agreement, interest at the legal rate from the date of maturity of a debt shall accrue as an addition to the debt.”

FN2. General Statutes § 37–3a(a) provides, in part:  “Except as provided in Sections 37–3b, 37–3c and 52–192a, interest at the rate of ten per cent a year, and no more, may be recovered and allowed in civil actions or arbitration proceedings under chapter 909, including actions to recover money loaned at a greater rate, as damages for the detention of money after it becomes payable ․”.  FN2. General Statutes § 37–3a(a) provides, in part:  “Except as provided in Sections 37–3b, 37–3c and 52–192a, interest at the rate of ten per cent a year, and no more, may be recovered and allowed in civil actions or arbitration proceedings under chapter 909, including actions to recover money loaned at a greater rate, as damages for the detention of money after it becomes payable ․”

Scholl, Jane S., J.