Sikorsky Fin. Credit Union, Inc. v. Butts

Defendant financed his purchase of a used car with a retail installment loan from Plaintiff. Defendant defaulted on the loan, so Plaintiff repossessed the car and sold it. Plaintiff then brought this action against Defendant seeking a deficiency judgment, interest, and attorney’s fees. The trial court awarded Plaintiff compensatory damages and costs and attorney’s fees. The court also awarded prejudgment interest under Conn. Gen. Stat. 37-1 at the contract rate of 9.14 percent and discretionary postjudgment interest under Conn. Gen. Stat. 37-3a at an annual rate of two percent. Plaintiff appealed, arguing that the trial court improperly awarded discretionary postjudgment interest pursuant to section 37-3a. The Appellate Court affirmed, determining that the entry of judgment terminated the accrual of postmaturity interest on the loan, leaving any award of postjudgment interest to the trial court’s discretionary powers under Conn. Gen. Stat. 37-3a(a). The Supreme Court reversed, holding (1) the Appellate Court improperly concluded that postmaturity interest terminates upon the entry of judgment in the absence of a specific agreement for postjudgment interest; and (2) because the parties’ loan contract did not disclaim postmaturity interest Plaintiff was entitled to postmaturity interest under section 37-1(b). View "Sikorsky Fin. Credit Union, Inc. v. Butts" on Justia Law