248 P.3d 856
N.M.2011Background
- ACP sued the City of Albuquerque under § 1983 alleging due process and takings violations stemming from a revised zoning plan on ACP's leasehold (1995 filing; 2003 jury verdicts for due process and takings).
- Final judgment against the City on the due process verdict was entered April 11, 2003, in the amount of $8,349,095 after remedies were partially elected.
- ACP sought post-judgment interest arguing § 56-8-4(D) exempts the state and subdivisions from interest unless otherwise provided by statute or common law, and federal law (Section 1961) provides interest in § 1983 actions.
- The district court awarded post-judgment interest at 8.75% under state law; the Court of Appeals later reversed, holding state-law exemption applied and § 1961 did not apply to state court § 1983 actions.
- This Court granted certiorari to decide (a) whether § 56-8-4(D) permits post-judgment interest at all in state court § 1983 actions and (b) which rate applies when interest is recoverable.
- The Court held that § 56-8-4(D) incorporates the federal rate from § 1961 as the applicable rate for post-judgment interest in state court § 1983 actions.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does § 56-8-4(D) exempt state entities from post-judgment interest in § 1983 cases, or does it incorporate other law? | ACP contends § 56-8-4(D) incorporates § 1961 and allows post-judgment interest. | City argues exemption applies unless statute or common law provides otherwise; § 1961 does not apply to state court actions. | § 56-8-4(D) incorporates § 1961; state entities are not immune where law provides otherwise. |
| What rate governs post-judgment interest when § 1983 runs in state court? | ACP/NMTLA argue § 56-8-4(A) 8.75% controls as the general rate; § 1961’s floating rate should not apply. | City argues § 1961’s rate cannot be applied in state court, so § 56-8-4(A) controls. | The rate is § 1961(a)’s floating federal rate incorporated by § 56-8-4(D); not the fixed 8.75%. |
Key Cases Cited
- Kaiser Aluminum & Chem. Corp. v. Bonjorno, 494 U.S. 827 (Supreme Court, 1990) (purpose of postjudgment interest is to compensate, not merely enforce)
- Felder v. Casey, 487 U.S. 131 (Supreme Court, 1988) (remedial goals of § 1983 include compensation and deterrence)
- Transpower Constructors v. Grand River Dam Auth., 905 F.2d 1413 (10th Cir., 1990) (interest on money judgments under § 1961 is mandatory)
- Folz v. State, 115 N.M. 639 (Ct. App., 1993) (historical development of § 56-8-4(D) and government immunity)
- Gaulin v. Comm'r of Pub. Welfare, 505 N.E.2d 898 (Mass. App. Ct., 1987) (section 1961 cannot be directly invoked in state courts)
- Sunwest Bank v. Colucci, 117 N.M. 373 (N.M. Supreme Court, 1994) (post-judgment interest at statutory rate from entry)
