2011 NMSC 002
N.M.2011Background
- ACP's Section 1983 action against the City challenged due process and takings claims arising from zoning changes; federal verdicts awarded damages but takings damages were dismissed due to remedy election,” “Judgment entered April 11, 2003 for due process claim totaling $8,349,095,” “ACP sought post-judgment interest under NMSA 56-8-4(D) and 8 3/4% statutory rate in district court,” “Court of Appeals reversed the post-judgment interest award; NMCA held Section 1961 did not apply to state court Section 1983 actions and exempted the City,” “Supreme Court granted certiorari to determine whether Section 56-8-4(D) incorporates Section 1961 and what rate applies under Section 1983 actions in state court.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether 56-8-4(D) exempts post-judgment interest for Section 1983 actions in state court | ACP argues 1961 applies, so interest should be awarded | City contends only state statutes apply under 56-8-4(D) and Section 1961 does not apply in state court | No; Section 56-8-4(D) incorporates Section 1961 as the law allowing interest. |
| What rate of post-judgment interest applies in state court Section 1983 actions | ACP/NMTLA favor Section 1961 floating rate | City favors the static 8 3/4% rate of 56-8-4(A) | The rate is Section 1961’s floating rate incorporated by reference via 56-8-4(D). |
Key Cases Cited
- Kaiser Aluminum & Chem. Corp. v. Bonjorno, 494 U.S. 827 (U.S. Supreme Court 1990) (purpose of postjudgment interest is to compensate for loss over time)
- Aronson v. Quick Point Pencil Co., 440 U.S. 257 (U.S. Supreme Court 1979) (established enforcement/compensation rationale for post-judgment interest)
- Transpower Constructors v. Grand River Dam Auth., 905 F.2d 1413 (10th Cir. 1990) (post-judgment interest as a monetary remedy in federal actions)
- Sunwest Bank v. Colucci, 117 N.M. 373 (N.M. 1994) (post-judgment interest accrues at statutory rate from entry of judgment)