{"id":867,"date":"2012-09-27T14:18:57","date_gmt":"2012-09-27T20:18:57","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=867"},"modified":"2012-09-27T14:18:57","modified_gmt":"2012-09-27T20:18:57","slug":"allowing-the-use-of-a-general-verdict-form-in-a-construction-defect-case-could-subject-your-client-to-prejudgment-interest","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/allowing-the-use-of-a-general-verdict-form-in-a-construction-defect-case-could-subject-your-client-to-prejudgment-interest\/","title":{"rendered":"Allowing the Use of a General Verdict form in a Construction Defect Case could Subject your Client to Prejudgment Interest."},"content":{"rendered":"<p>David M. McLain &#8211; July 16, 2012<\/p>\n<p>A recent opinion from the Colorado Court of Appeals is a cautionary tale concerning the calculation of pre-judgment interest.\u00a0 See Hendricks v. Allied Waste Transportation, Inc., 2012 WL 1881004 Colo. App. 2012.\u00a0 The Hendricks sued Allied after one of its drivers backed into the corner of their home with an Allied garbage truck.\u00a0 At trial, a jury awarded the Hendricks $160,100 in damages.\u00a0 Although the jury was instructed on the cost of repairs, diminution in value, and non-economic damages, the parties agreed to a general verdict form that did not ask the jury to specify the types of damages awarded.\u00a0 Id. at 1.\u00a0 The Hendricks sought to amend the judgment to include prejudgment interest and costs, which the trial court granted.<\/p>\n<p>Allied appealed, arguing that the trial court erred by awarding the Hendricks prejudgment interest from the date their property was damaged.\u00a0 Id. at 7.\u00a0 The Colorado Court of Appeals found no error, and affirmed.\u00a0 In its opinion, the Court of Appeals acknowledged that the trial court\u2019s award of prejudgment interest was pursuant to C.R.S. \u00a7 5-12-102.\u00a0 The pertinent portion of this statute provides:<\/p>\n<blockquote><p>1\u00a0\u00a0 Except as provided in section 13-21-101, C.R.S., when there is no agreement as to the rate thereof, creditors shall receive interest as follows:<\/p>\n<p>b Interest shall be at the rate of eight percent per annum compounded annually for all moneys or the value of all property after they are wrongfully withheld or after they become due to the date of payment or the date judgment is entered, whichever first occurs.<\/p>\n<p>C.R.S. \u00a7 5-12-1021b.<\/p><\/blockquote>\n<p>Allied argued that the trial court should have awarded interest from the date of the verdict pursuant to Goodyear Tire &amp; Rubber Co. v. Holmes, 193 P.3d 821 Colo. 2008, and Hildebrand v. New Vista Homes II, LLC, 252 P.3d 1159 Colo. App. 2010.\u00a0 The Court of Appeals found Allied\u2019s reliance on these cases misplaced as these cases concern damages for the cost of repairs whereby interest accrues from the date repairs are made.\u00a0 Importantly, the Court of Appeals pointed out that in Goodyear and Hildebrand, the juries returned special verdict forms, which allowed the courts to calculate interest based specifically on the cost of repairs.\u00a0 Id.<\/p>\n<p>In the Hendricks case, the parties agreed to a general verdict form whereby the jury was instructed on the cost of repairs, as well as diminution of property value, and noneconomic damages.\u00a0 As a result, the Court of Appeals could not determine which portion of the verdict, if any, was for the cost of repairs.\u00a0 In its opinion, the Court of Appeals referred to a recent Colorado Supreme Court case, Ferrellgas, Inc. v. Yeiser, 247 P.3d 1022 Colo. 2011, wherein the Supreme Court affirmed the trial court\u2019s calculation of prejudgment interest from the date the plaintiff\u2019s home was initially damaged since the jury\u2019s general verdict form lacked any basis to distinguish between the amount of damages awarded for the reasonable cost of repair and diminution in value concerning the calculation of prejudgment interest. \u00a0In accordance with these recent Colorado opinions, those defending property damage claims should insist on the use of a special verdict from to limit the exposure to their clients stemming from prejudgment interest.<\/p>\n<p>via <a href=\"http:\/\/www.coloradoconstructionlitigation.com\/2012\/07\/allowing-use-of-general-verdict-form-in.html\">Colorado Construction Litigation: Allowing the use of a general verdict form in a construction defect case could subject your client to prejudgment interest.<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>David M. McLain &#8211; July 16, 2012 A recent opinion from the Colorado Court of Appeals is a cautionary tale concerning the calculation of pre-judgment interest.\u00a0 See Hendricks v. Allied Waste Transportation, Inc., 2012 WL 1881004 Colo. App. 2012.\u00a0 The Hendricks sued Allied after one of its drivers backed into the corner of their home&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/allowing-the-use-of-a-general-verdict-form-in-a-construction-defect-case-could-subject-your-client-to-prejudgment-interest\/\">Continue reading <span class=\"screen-reader-text\">Allowing the Use of a General Verdict form in a Construction Defect Case could Subject your Client to Prejudgment Interest.<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[4],"tags":[24,56],"class_list":["post-867","post","type-post","status-publish","format-standard","hentry","category-construction-defects","tag-construction-defect","tag-property-damage","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Allowing the Use of a General Verdict form in a Construction Defect Case could Subject your Client to Prejudgment Interest. - Advise &amp; Consult, Inc.<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/allowing-the-use-of-a-general-verdict-form-in-a-construction-defect-case-could-subject-your-client-to-prejudgment-interest\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Allowing the Use of a General Verdict form in a Construction Defect Case could Subject your Client to Prejudgment Interest. - Advise &amp; Consult, Inc.\" \/>\n<meta property=\"og:description\" content=\"David M. McLain &#8211; July 16, 2012 A recent opinion from the Colorado Court of Appeals is a cautionary tale concerning the calculation of pre-judgment interest.\u00a0 See Hendricks v. Allied Waste Transportation, Inc., 2012 WL 1881004 Colo. 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