Bankruptcy Law Case Summary – PR Highway and Transportation Auth. v. Redondo Construction Corp.

On behalf of Furr & Cohen, P.A. posted in News on Friday, May 6, 2016.

In a suit alleging contract claims under Article 1061 of the Puerto Rico Civil Code, 31 L.P.R.A. section 3025, the district court’s affirmance of the bankruptcy court’s award of prejudgment interest to plaintiff is vacated and remanded for recalculation of section 1961 interest and, to prevent double recovery, a recalculation of Article 1061 interest where: 1) debtor did not forfeit its claim to prejudgment interest under Article 1061; and 2) 28 U.S.C. section 1961 exclusively controls awards of postjudgment interest in federal court.