Welded Construction, L.P. v. The Williams Companies, Inc.
19-50194
Bankr. D. Del.Apr 21, 2025Background
- The case arises from an adversary proceeding in bankruptcy court regarding post-judgment interest and penalties under the Pennsylvania Contractor and Subcontractor Payment Act (CASPA).
- Welded Construction, L.P. (Welded) and Transco disagreed on whether CASPA interest and penalties continue to accrue after a federal judgment is entered.
- The sole dispute was over the form and effect of the final federal judgment: whether state law (CASPA) or federal law (28 U.S.C. § 1961) governs post-judgment interest and penalties.
- Welded argued according to Pennsylvania state law and a state case (Zimmerman) that CASPA remedies should persist post-judgment until payment is made in full.
- Transco argued for the application of the federal post-judgment interest statute, claiming state penalties terminate at judgment entry in federal courts.
- The Bankruptcy Court addressed the issue for the first time at this stage, as it had not been previously briefed in the opinion.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether CASPA interest/penalty accrues post-judgment in federal court | CASPA interest and penalty continue accruing until paid | Once judgment is entered, federal interest rate applies and CASPA penalties/interest end | CASPA penalties cease on judgment entry; post-judgment interest governed by 28 U.S.C. § 1961 |
Key Cases Cited
- Zimmerman v. Harrisburg Fudd I, L.P., 984 A.2d 497 (Pa. Super. Ct. 2009) (considered whether CASPA penalties accrue post-judgment; interpreted liberally for remedial purposes)
- Resyn Corp. v. United States (In re Resyn Corp.), 945 F.2d 1279 (3d Cir. 1991) (held federal post-judgment interest statute applies to bankruptcy court judgments)
- Sovereign Bank v. Remi Cap., Inc., 49 F.4th 360 (3d Cir. 2022) (held private contract could override the default federal post-judgment interest rate if intent is clear)
