Peo in Interest of B.H
2021 COA 86
| Colo. Ct. App. | 2021Background:
- Juvenile B.H. pled guilty via a stipulated agreement to multiple offenses; the agreement required restitution but was silent on interest.
- The People sought over $100,000 in restitution for victims, including "interest accrued at 8% from the time of loss."
- After sentencing, the General Assembly amended the law to suspend postjudgment interest while a juvenile under 21 is in delinquency; parties agreed postjudgment interest would not accrue for B.H.
- The parties disputed prejudgment interest: B.H. argued (among other positions) prejudgment interest should not apply to property-damage restitution; the People urged prejudgment interest from the date of the offenses.
- The district court awarded prejudgment interest from the dates of the offenses; the Court of Appeals reversed and remanded, directing prejudgment interest to be calculated from each victim’s date of out-of-pocket expenditures to repair/replace damaged or stolen property.
Issues:
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether prejudgment interest can be awarded on restitution for property damage | "Full restitution" includes prejudgment interest on property-damage awards | Prejudgment interest does not accrue on property-damage restitution (or interest barred) | Yes, prejudgment interest is available to compensate loss of use of money, but only to the extent the victim incurred out-of-pocket expenses |
| When prejudgment interest begins to accrue for property-damage restitution | Interest accrues from the date of the offense ("time of loss") | (Implicit) If interest applied, it should not necessarily start at date of offense; B.H. disputed award timing | Interest accrues when the victim first incurs out-of-pocket expenses to repair or replace the property, not necessarily on the date of the offense |
Key Cases Cited
- Valenzuela v. People, 893 P.2d 97 (Colo. 1995) (prejudgment interest accrues from the victim’s actual pecuniary injury, not necessarily the date of theft)
- Goodyear Tire & Rubber Co. v. Holmes, 193 P.3d 821 (Colo. 2008) (prejudgment interest begins when plaintiff incurs replacement costs, not when defect was first observed)
- Roberts v. People, 130 P.3d 1005 (Colo. 2006) (prejudgment interest compensates victims for loss of use of money; restitution statutes construed to make victims whole)
- People v. Reyes, 166 P.3d 301 (Colo. App. 2007) (restitution defined as pecuniary loss including out-of-pocket expenses and interest)