April 28, 2021

Felczer v. Apple, Inc. (Apr. 23, 2021, D077314)

The Court of Appeal has held that in a civil case where the prevailing party is awarded prejudgment costs, interest accrues from the date of the judgment that establishes the right to recover costs, even if the dollar amount has not yet been determined at that time.

The trial court issued separate orders awarding prejudgment costs and attorney fees to plaintiffs in a wage and hour class action suit. The parties disputed when interest began to run on the awards. Plaintiffs maintained that interest should begin to run on each award from the date judgment is entered—even if the amount of the awards is not determined at that time. Defendant argued that interest should begin to run when the amount of the awards is made certain. The trial court adopted defendant’s position.

Plaintiffs appealed, and the Court of Appeal reversed, holding that interest began to run when plaintiffs’ right to costs and fees was established, even if those amounts were not determined until a later date. The court relied on Code of Civil Procedure section 685.020, which requires that interest accrue on a money judgment from the date the judgment is entered. The court reasoned that any judgment that establishes one party owes the other payment is a money judgment for purposes of section 685.020, even if the amount owed has not yet been determined. The court noted that deferring the accrual of interest until the amount of fees and costs has been determined would create incentives for judgment debtors to delay calculation of the amounts owing.