White v. Wycoff
862 F.3d 1065
| 10th Cir. | 2017Background
- Plaintiff Philip White won a jury verdict awarding $100,000 in compensatory damages and sought prejudgment interest; the district court denied prejudgment interest, viewing most of the award as noneconomic.
- White argued on appeal for a bright-line rule that prejudgment interest is always available in § 1983 cases or, alternatively, that the district court abused its discretion by denying interest on the full award or at least on his claimed economic damages ($3,974.25).
- The Tenth Circuit panel declined to overrule circuit precedent that prejudgment interest is not recoverable as a matter of right in § 1983 cases and instead applied abuse-of-discretion review to the denial.
- The district court had concluded prejudgment interest would not be necessary to compensate White (because damages were largely noneconomic) and that the equities did not favor awarding interest.
- The district court also declined to parse the jury’s award between economic and noneconomic components; the Tenth Circuit found that refusal reasonable rather than speculative.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether prejudgment interest is a mandatory entitlement in § 1983 cases | White: prejudgment interest should be a bright-line right for compensatory awards | Defendants: circuit precedent holds it is discretionary | Held: Not mandatory; circuit precedent controls (prejudgment interest not recoverable as a matter of right) |
| Whether federal law requires incorporation of Colorado prejudgment-interest rule under § 1988 | White: § 1988 incorporates Colorado law mandating interest | Defendants: § 1988 applies only if federal law is deficient; argument waived and inconsistent with precedent | Held: Waived and invalid; § 1988 does not compel overriding circuit precedent |
| Whether denial of prejudgment interest on noneconomic damages was an abuse of discretion | White: court failed to determine if interest would be compensatory and ignored factors favoring interest | Defendants: court reasonably found interest unnecessary for noneconomic damages and weighed equities | Held: No abuse; court reasonably found interest unnecessary for noneconomic damages and acted within discretion |
| Whether prejudgment interest should have been awarded on identified economic damages ($3,974.25) | White: at least award interest on proved economic loss | Defendants: court rightly refused to speculate how jury allocated award between economic and noneconomic | Held: No abuse; court reasonably declined to attribute a specific portion of verdict to economic damages |
Key Cases Cited
- Zuchel v. City & County of Denver, 997 F.2d 730 (10th Cir. 1993) (prejudgment interest is not recoverable as a matter of right and two-step test: compensatory function then equities)
- Thompson v. Weyerhaeuser Co., 582 F.3d 1125 (10th Cir. 2009) (panels cannot overrule published circuit precedent)
- Robertson v. Wegmann, 436 U.S. 584 (U.S. 1978) (§ 1988 supplies state law only when federal law is deficient)
- Furtado v. Bishop, 604 F.2d 80 (1st Cir. 1979) (§ 1983’s omission of prejudgment interest does not render federal law "deficient")
- Barnard v. Theobald, 721 F.3d 1069 (9th Cir. 2013) (noneconomic damages delay may justify prejudgment interest — relied on by plaintiff)
- U.S. Indus., Inc. v. Touche Ross & Co., 854 F.2d 1223 (10th Cir. 1988) (cited for interplay of compensatory purpose and equitable considerations)
- Wilson v. Burlington N. R.R. Co., 803 F.2d 563 (10th Cir. 1986) (discussion of how juries assess noneconomic damages)
- Malloy v. Monahan, 73 F.3d 1012 (10th Cir. 1996) (district court may deny prejudgment interest based on equities even if compensatory)
- Towerridge, Inc. v. T.A.O., Inc., 111 F.3d 758 (10th Cir. 1997) (abuse-of-discretion standard for equitable determinations)
