Untitled Texas Attorney General Opinion ( 1976 )

The Honorable B. L. DeBerry Opinion No. H-886
Engineer-Director
State Department of Highways Re: Legal rate of interest
and Public Transportation to judgment in an eminent
P. 0. BOX 5075 domain case when the con-
Austin, Texas 78763 demnation award was prior
to the amendment to article
5069-1.05, V.T.C.S., and the
judgment was subsequent to
the amendment.
Dear Mr. DeBerry:
You have requested our opinion regarding the legal rate
of interest on a judgment in an eminent domain case. The
condemnation award was made prior to September 1, 1975, which
is the date on which the statutory interest rate was increased
from 6 to 9 percent. The judgment, however, was entered after
that date.
As an example, you describe a situation in which the
special commissioners filed an award of $5,625.00 on Sep-
tember 13, 1971. On September 20, 1971, the State deposited
that amount into the registry of the court and took possession
of the land, as provided in article 3268, V.T.C.S. Four
years later, the 64th Legislature amended article 5069-1.05,
V.T.C.S., increasing the statutory rate of interest from 6
to 9 percent, effective September 1, 1975. Subsequently, by
a judgment dated January 9, 1976, a jury awarded the condemnee
an additional amount of $16,875.00. You ask our advice as
to the legal rate of interest on that additional $16,875.00
between September 28, 1971, and January 9, 1976.
p. 3731
. -
The Honorable B. L. DeBerry - page 2 (H-886)
Initially, we observe that the condemnee is entitled to
interest on the jury's additional award from the date the
initial deposit is made until the date of judgment. City
of Amarillo v. Attebury, 303 S.W.Zd 804 (Tex. Civ. ADD. -.
sari110 1957; nom. In Watkins v. junker. 40 S:W. 11
(Tex. Sup. 18971, which involved a breac:hontract, the
statutory interest was 8 percent at the time of the breach,
but was subsequently lowered to 6 percent. The Supreme Court
held that "the rate fixed by law should be applied while in
force," Id. at 12, and ordered recovery at the lower rate
from thedate of the statutory change.
This view has recently been affirmed, with regard to
amended article 5069-1.05, in Micrea, Inc. v. Eureka Life
Insurance Co. of America, 534 S.W.2d 34e,3- (Tex.Civ.App. --
Fort Worth‘-rV'lb;writ ref'd n.r.e.), and is in accord with the
prevailing rule in most other jurisdictions. See e.
Ci& yfi C``p;'0;~3````;".2d+ ~;Il;S;~:,l;;~2&%%-.
g q
Sup. 1934 ; Yamamoto v. Coste lomN.Y.S.2d 33 (N.Y. Sup. 1973).
Thus, in our opinion,ihe legal rate of interest on the $16,875.00
award is 6 percent per annum prior to September 1, 1975, the
effective date of the statutory amendment, and 9 percent there-
after until paid. V
SUMMARY
The legal rate of interest to judgment
in an eminent domain case is 6 percent per
annum prior to September 1, 1975, the
effective date of the amendment to article
5069-1.05, V.T.C.S., and 9 percent thereafter.
Very truly yours,
Attorney General of Texas
p. 3732
. .
The Honorable B. L. DeBerry - page 3 (H-886)
Opinion Committee
jwb
p. 3733