On July 21, 2011, the District of Columbia Court of Appeals decided Burke v. Groover, Christie & Merritt, P.C., Nos. 07-CV-1407 & 07-CV-1420, slip op. (D.C. July 21, 2011), which interprets a District of Columbia statute setting the interest rate applicable to judgments against private parties where the interest rate is not fixed by contract. As explained by the Court, the relevant statute, D.C. Code § 28-3302(c), provides that “the applicable rate of interest is based on the variable Treasury Rate for the underpayment of taxes, absent a reduction under [a] ‘good cause’ exception.” Burke, slip op. at 4. The Court held that “the rate of interest applicable to judgments against private parties in the District of Columbia pursuant to D.C. Code § 28-3302(c)” is not fixed at the time of judgment and instead is variable in that “it continues to fluctuate with the market, on a quarterly basis, from the date of judgment to the date it is paid.” Id. at 28. It further held that a trial court may not lower the rate of interest pursuant to the “good cause” exception “where the only justification is the usual delay caused by post-trial motions and appellate consideration.” Id. Finally, the Court held that a trial court has equitable power in a tort action to award interest to compensate a party for unwarranted delay in payment of an undisputed amount of post-judgment interest. Id. at 27-28.
Douglas C. Melcher
I am a licensed attorney with about twenty years of experience in the private practice of law. I focus my practice on advising and representing individuals, small businesses, and non-profits in civil litigation, including trial court proceedings, appeals, administrative hearings, mediation, and arbitration. I have written numerous articles for D.C. Law Blog and other publications, and am the author of Tort Claims and Defenses in the District of Columbia, which is a handbook for lawyers about civil claims for injury to persons, property, reputation, and commercial interests. Please feel free to contact me if you would like to inquire about assistance with a legal matter. I can be reached at dmelcher@melcherlaw.com or 202-427-5753. For further information about my background, click here.