Schulte v. Smith
Schulte v. Smith
Opinion of the Court
The opinion of September 12, 1997, is withdrawn and the following is substituted therefor.
The only issue involved in this appeal is how post-judgment interest should be calculated. Both sides argue that the trial court's calculations are incorrect. We reverse and remand.
On April 6, 1993, a jury returned a verdict of $4.5 million in favor of the plaintiff in this wrongful death/medical malpractice action. On April 23, 1993, the defendants moved to have the verdict reduced, pursuant to §
Following post-verdict review of the damages award conducted pursuant to Hammond v. City of Gadsden,
The plaintiff appealed, challenging the constitutionality of §
On August 18, 1995, this Court, in Smith v. Schulte,
On October 25, 1995, the defendants deposited an additional $723,127 with the circuit court clerk. The defendants' petition to the United States Supreme Court for certiorari review was subsequently denied. Smith v. Schulte, supra. On July 26, 1996, the defendants paid $500,000 directly to the plaintiff, with the understanding that by accepting the payment the plaintiff was not waiving his claims to post-judgment interest.
A dispute then arose between the parties concerning the amount of post-judgment interest due on the judgment. The defendants filed with the trial court a "Motion to Determine Interest." On December 2, 1996, the trial court ordered the defendants to "pay 12% per annum interest on the judgment of $2,500,000.00 from April 30, 1993 (the date of the original judgment on the jury's verdict) through the date defendants pay the whole recovery into Court or directly to Plaintiff." The trial court concluded that interest continued to accrue on the entire judgment principal until the judgment plus all accrued *Page 140
post-judgment interest was paid because the trial court believed that under Elmore County Comm'n v. Ragona,
First, the defendants disagree with the date from which the trial court held that post-judgment interest began to accrue, April 30, 1993; that was the date the trial court entered a judgment on the jury's verdict. They contend that post-judgment interest should accrue from December 13, 1993, when the trial court entered the order reducing the April 30, 1993, judgment from $4.5 million to the limit specified in §
"Section
"Unless otherwise provided by law, if a judgment for money in a civil case is affirmed . . ., whatever interest is provided by law shall be payable from the date the judgment was entered in the trial court."
Based on established law, we conclude that the final judgment in this case, for the purposes of calculating post-judgment interest, was entered on April 30, 1993. Lunceford v.Monumental Life Ins. Co.,
In Berry v. Druid City Hospital Board,
Hewitt v. General Tire Rubber Co.," 'The court's order entering judgment for the defendant was in error and abortive, and when this court issued its mandate ordering the judgment for defendant vacated and the judgment on the verdict for plaintiff reinstated, it vitalized that judgment to the same extent and with the same force as though the trial court had never entered the abortive and erroneous judgment for defendant.' "
We conclude that interest on the remitted judgment (i.e., the $2.5 million judgment) accrues from the date the trial court entered the original judgment, to the same extent and with the same force as though the trial court had never entered its order reducing the amount of that judgment. See Berry, supra. The trial court correctly decided that the judgment was entered on April 30, 1993, for purposes of determining post-judgment interest.
The defendants next argue that the trial court erred in concluding that interest continues to accrue on theentire judgment principal until the whole recovery is paid, despite the fact that the defendants have deposited into court and paid directly to the *Page 141
plaintiff a total amount slightly greater than the $2.5 million judgment principal. Indeed, the plaintiff agrees with the defendants that the trial court erred in its calculations because, he concedes, interest did not continue to accrue on the entire judgment principal even after the defendants had made the two deposits into court and the payment to the plaintiff. Rather, it is uncontested on appeal that the deposits made on December 22, 1993, and October 25, 1995, and the payment made on July 26, 1996, should have been treated as "partial payments" of the judgment and that the amount of each deposit and payment should have been credited on the date of payment, first to pay all accrued interest on the judgment, and the balance applied to reduce the principal. See §
Because the parties agree that the three payments made in this case should be treated as partial payments on the judgment from the time paid, pursuant to §
The judgment of the trial court is reversed, and the case is remanded for recalculation of the amount due on the judgment.
OPINION OF SEPTEMBER 12, 1997, WITHDRAWN; OPINION SUBSTITUTED; APPLICATION OVERRULED; REVERSED AND REMANDED.
HOOPER, C.J., and KENNEDY, COOK, and BUTTS, JJ., concur.
SEE, J., concurs in the result.*
MADDOX and HOUSTON, JJ., dissent.
Concurring Opinion
Although I appreciate the concerns expressed in the dissenting opinion written by Justice Maddox and joined by Justice Houston, I concur in the result reached in the main opinion because I believe the validity of §
Dissenting Opinion
The Legislature of Alabama, in 1987, adopted legislation limiting the amount of damages a party could recover against a health care provider. Act No. 87-189, § 8, Ala. Acts 1987. Section 8 was codified at Ala. Code 1975, §
HOUSTON, J., concurs.
"In any action commenced pursuant to Section
6-5-391 or Section6-5-410 , against a health care provider whether in contract or in tort based on a breach of the standard of care the amount of any judgment entered in favor of the plaintiff shall not exceed the sum of $1,000,000. Any verdict returned in any such action which exceeds $1,000,000 shall be reduced to $1,000,000 by the trial court or such lesser sum as the trial court deems appropriate in accordance with prevailing standards for reducing excessive verdicts. During the trial of any action brought pursuant to Section6-5-391 or6-5-410 neither the court nor any party shall advise or infer to the jury that it may not return a verdict in excess of $1,000,000; in the event the jury is so advised or such inference is made the court, upon motion of an opposing party, shall immediately declare a mistrial. The maximum amount payable under this section, $1,000,000, shall be adjusted on April fifteenth of each year to reflect any increase or decrease during the preceding calendar year in the consumer price index of the United States Department of Commerce. Said adjustment shall equal the percentage change in the consumer price index during the preceding calendar year."
Reference
- Full Case Name
- William J. Schulte, M.D., and Pulmonary Associates of Mobile, P.A. v. Woodrow Smith, as Administrator of the Estate of Annie Jo Smith
- Cited By
- 23 cases
- Status
- Published