Casto v. Arkansas-Louisiana Gas Co.

562 F.2d 622 (10th Cir. 1977) · United States Court of Appeals for the Tenth Circuit · September 20, 1977

Summary

The court held that Oklahoma law governed the availability of prejudgment interest in diversity personal-injury actions. Under 12 O.S. § 727(2), prejudgment interest was properly awarded on personal-injury damages, but not on exemplary damages because exemplary damages are punitive rather than compensatory. The judgment was affirmed in part, reversed to eliminate prejudgment interest on exemplary damages, and remanded for amendment.

Holdings

  1. Oklahoma law, rather than federal law, governed the allowability of prejudgment interest on the recovery.
  2. Under 12 O.S.Ann. § 727(2), prejudgment interest was properly awarded on the portion of the verdict attributable to personal injuries.
  3. Prejudgment interest was not authorized on the exemplary-damage award because exemplary damages are punitive rather than damages by reason of personal injury.

Questions Presented

  1. Whether Oklahoma or federal law governed the availability of prejudgment interest in this diversity action.
  2. Whether Oklahoma law authorized prejudgment interest on damages awarded for personal injuries.
  3. Whether Oklahoma law authorized prejudgment interest on an award of exemplary or punitive damages in a personal-injury action.

Disposition

reversed_and_remanded

Cases Cited (16)

  • Benson v. Blair, 515 P.2d 1363 (Okla. 1973)(followed in part)
  • Erie Railroad Co. v. Tompkins, 304 U.S. 64, 58 S.Ct. 817, 82 L.Ed. 1188 (1938)(applied)
  • Massachusetts Benefit Association v. Miles, 137 U.S. 689, 11 S.Ct. 234, 34 L.Ed. 834 (1891)(followed)
  • Louisiana & Arkansas Railway Co. v. Export Drum Co., 359 F.2d 311, 317 (5th Cir. 1966)(followed)
  • Moore-McCormack Lines, Inc. v. Amirault, 202 F.2d 893, 895 (1st Cir. 1953)(followed)
  • New Amsterdam Casualty Co. v. Soileau, 167 F.2d 767, 772 (5th Cir. 1948)(followed)
  • Oresman v. G. D. Searle & Co., 388 F.Supp. 1175, 1178 (D.R.I. 1975)(followed)
  • Guaranty Trust Co. v. York, 326 U.S. 99, 65 S.Ct. 1464, 89 L.Ed. 2079 (1945)(applied)
  • Hanna v. Plumer, 380 U.S. 460, 85 S.Ct. 1136, 14 L.Ed.2d 8 (1965)(applied)
  • Klaxon Co. v. Stentor Electric Manufacturing Co., Inc., 313 U.S. 487, 61 S.Ct. 1020, 85 L.Ed. 1477 (1941)(applied)

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