Lesson. A money judgment that includes an award of attorney’s fees accrues statutory post-judgment interest.
Case cite. Piccadilly Mgmt. v. Abney, 215 N.E.3d 1078 (Ind. Ct. App. 2023)
Legal issue. Whether an award of attorney’s fees is separate from a judgment and thus excluded from the calculation of post-judgment interest.
Vital facts. This case was an eviction matter in which the Plaintiff landlord received a judgment against the Defendant tenant for unpaid rent plus attorney’s fees. During post-judgment garnishment proceedings, Plaintiff sought recovery of statutory post-judgment interest on both the unpaid rent and the attorney’s fees components of the judgment.
Procedural history. The trial court denied Plaintiff’s request for post-judgment interest on the award of attorney’s fees. Plaintiff appealed.
Key rules. In Indiana, “post-judgment interest is a creature of statute, borne of legislative authority,” and is not subject to being denied by the discretion of a judge.
The relevant statute is Indiana Code Section 24-4.6-1-101, which states:
Except as otherwise provided by statute, interest on judgments for money whenever rendered shall be from the date of the return of the verdict or finding of the court until satisfaction at an annual rate of eight percent (8%) if there was no contract by the parties.
The “shall” in the statute means that prevailing plaintiffs are “automatically entitled” to post-judgment interest.
Further, established Indiana precedent provides that “awards of … attorney’s fees … accrue post-judgment interest under the statute.”
Holding. The Indiana Court of Appeals reversed the trial court.
Policy/rationale. Piccadilly arose out of a small claims court proceeding, and the court interpreted a specific small claims statute as prohibiting interest from running on an award of fees. The Court of Appeals saw things differently. For purposes of this blog, lenders should be aware that, when obtaining foreclosure-related judgments, counsel’s fees are to be considered an element of the underlying judgment – not unlike unpaid principal or other damages items – that will accrue statutory post-judgment interest.
Related posts.
- What Is Indiana’s Post-Judgment Interest Rate?
- Indiana Supreme Court’s COVID Order Interpreted: Post-Judgment Interest
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