Section 83 Recoverability Generally

• Library: Damages 2012

While Congress has made express statutory provision for recoverability of postjudgment interest, there is no general federal statute that controls recoverability of prejudgment interest in nondiversity cases. Therefore, unless the case arises under a particular federal statute containing a prejudgment interest provision, counsel must look to “federal common law” to determine the recoverability of prejudgment interest.

Under federal common law, it has been said that a trial court has the discretion to award prejudgment interest in federal-question cases if the damages sought were “previously liquidated” or an award of prejudgment interest is “necessary to make the plaintiff whole.” Hollenbeck v. Falstaff Brewing Corp., 605 F. Supp. 421, 435 (E.D. Mo. 1984), aff’d,780 F.2d 20 (8^th Cir. 1985). The court considers the following factors in determining whether to award prejudgment interest:

· “(i) the need to fully compensate the wronged party for actual damages suffered,

· (ii) considerations of fairness and the relative equities of the award,

· (iii) the remedial purpose of the statute involved, and/or

· (iv) such other general principles as are deemed relevant by the court.”

Frank v. Relin, 851 F. Supp. 87, 90 (W.D.N.Y. 1994) (quoting Wickham Contracting Co. v. Local Union No. 3, Int’l...