186 A.3d 829
D.C.2018Background
- Esther Mazor died leaving two trusts (A and B) funded from her residuary estate; funds were not initially placed into the trusts but into an account controlled by her son Julian Mazor.
- Julian Mazor used estate funds for himself and his wife Elizabeth Farrell; some estate funds went to purchase and improve a D.C. house and to finance a Cape Cod house (down payment and mortgage payments).
- John and William Mazor sued Julian and Farrell for recovery of misappropriated estate funds; Julian defaulted, Farrell contested liability.
- The trial court found Farrell liable in unjust enrichment for roughly $320,000 traceable to the Cape Cod house but found her an innocent recipient as to many other expenditures and denied recovery of consequential gains; plaintiffs sought prejudgment interest.
- On remand the trial court denied prejudgment interest under D.C. Code § 15-108, concluding the unjust-enrichment claim was not an action to recover a "liquidated debt;" plaintiffs appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether unjust-enrichment claim is an "action to recover a liquidated debt" under D.C. Code § 15-108 entitling plaintiffs to prejudgment interest | Mazor brothers: debt was liquidated as amount traceable to estate funds was ascertainable and part of claim was fixed | Farrell: unjust-enrichment liability required equitable assessment (innocent recipient issues), so amount was not an easily ascertainable sum certain | Held: Not liquidated. Unjust-enrichment claim and innocent-recipient complexities made amount not an "easily ascertainable sum certain," so § 15-108 prejudgment interest unavailable. |
Key Cases Cited
- Steuart Inv. Co. v. The Meyer Grp., 61 A.3d 1227 (D.C. 2013) (defines liquidated debt as an easily ascertainable sum certain)
- Schwartz v. Swartz, 723 A.2d 841 (D.C. 1998) (quantum meruit and similar claims are unliquidated)
- Aon Risk Servs., Inc. of Wash., D.C. v. Estate of Coyne, 915 A.2d 370 (D.C. 2007) (dispute over proper assessment of damages renders claims unliquidated)
- District of Columbia v. Pierce Assocs., 527 A.2d 306 (D.C. 1987) (discussion of liquidated debt rationale and prejudgment interest statutes)
- Dist. Cablevision Ltd. P’ship v. Bassin, 828 A.2d 714 (D.C. 2003) (prejudgment interest is remedial and to be generously construed, but statutory requirements limit awards)
- Potomac Elec. Power Co. v. District of Columbia, 402 A.2d 430 (D.C. 1979) (prejudgment interest compensates for loss of use of money)
- Burke v. Groover, Christie & Merritt, P.C., 26 A.3d 292 (D.C. 2011) (courts may award prejudgment interest in equity even absent statutory authorization)
- Falconi-Sachs v. LPF Senate Square, LLC, 142 A.3d 550 (D.C. 2016) (elements of unjust enrichment explained)
