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News/Case Decisions

Court Finds Single Vehicle Accident Resulting in Multiple Deaths is Not Entitled to Compound Interest

Issue:

“After obtaining a jury verdict awarding damages for personal injuries and multiple deaths caused by a single vehicle accident, members of the Torres and Enriquez families and Koji Arriaga (the appellants) sought compound post-judgment interest on the judgment. At issue here is whether the appellants are entitled to compound interest on the judgment awarded to them.”

Brief Answer:

“We hold that they are not. ‘As a general rule, compound interest is not favored by the law and is generally allowed only in the presence of a statute or an agreement between the parties allowing for compound interest.’ Campbell v. Lake Terrace, Inc., 111 Nev. 1329, 1333, 905 P.2d 163, 165 (1995), overruled on other grounds by Aviation Ventures, Inc. v. Joan Morris, Inc., 121 Nev. 113, 115, 110 P.3d 59, 60-61 (2005). NRS 17.130(2), the statute that provides a default interest rate for judgments, directs that the interest rate will be adjusted biannually, although the statute does not authorize compound interest. Because it does not authorize compound interest, NRS 17.130(2) only allows for the award of simple interest on judgments”

Torres v. Goodyear Opinion: 14-03117