Prejudgment Interest Not Owed by Subcontractor on Consequential Damages

ST. LOUIS - A general contractor that accepted $677,372.59 from a subcontractor to settle defect claims is not entitled to prejudgment interest under state law, a Missouri appellate court has affirmed. Kozeny Wagner Inc. v. SimplexGrinnell LP, No. ED94157 (Mo. Ct. App., Eastern Dist.).

Missouri's Eastern District Court of Appeals on Sept. 14 affirmed a lower court ruling that the law providing for interest for creditors is limited to damages for breach of contract.

General contractor Kozeny Wagner Inc. sought damages from subcontractor SimplexGrinnell LP after leaks developed in fire-prevention sprinkler pipes installed by Simplex in a college residence …