Sparber Rudolph Annen, APLC v. DSouza
Defendants Dinesh and Dixie D'Souza appeal from the trial court's judgment awarding plaintiff Sparber Rudolph Annen, APLC (SRA) damages as determined by a jury, plus interest on the damage award calculated at 1.5 percent per month. The trial court concluded that the written retainer agreement (Agreement) the parties entered into specified an interest rate of 1.5 percent per month. The D'Souzas challenge the trial court's interpretation of the contract, arguing that the 1.5 percent per month charge was a "late fee," and not a stipulated prejudgment interest rate. According to the D'Souzas, any award of prejudgment interest should be calculated using the statutory default rate of 10 percent per year, as provided in Civil Code section 3289, subdivision (b).
Court conclude that the Agreement provides for interest at the rate of 1.5 percent per month on fees and costs that remain unpaid 30 days after billing. Pursuant to section 3289, subdivision (a), 1.5 percent per month is the applicable interest rate for calculating an award of prejudgment interest in this case. Court therefore affirm the judgment of the trial court.
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