Mesa Sand & Gravel Co. v. Landfill, Inc.

Summary

The Colorado Supreme Court held that a nonbreaching party may recover prejudgment interest at eight percent annually under section 5-12-102(1)(b) for a breach of contract, without proving that the breaching party obtained a gain or benefit. The court further held that the contractual breach constituted wrongful withholding even though Mesa retained a right to excavate the gravel itself. The court reversed and remanded for an award of prejudgment interest from July 29, 1983, through October 19, 1984.

Holdings

1. A claimant electing prejudgment interest under section 5-12-102(1)(b) need not prove that the withholding party recognized a gain or benefit from the money or property withheld.
2. A nonbreaching party may recover prejudgment interest at eight percent annually under section 5-12-102(1)(b) from the time of the breach.
3. Landfill's failure to perform its contractual duty to excavate the gravel to bedrock constituted wrongful withholding under section 5-12-102 and entitled Mesa to prejudgment interest.

Questions Presented

1. Whether a prevailing party seeking prejudgment interest under section 5-12-102(1)(b) must prove that the party withholding money or property obtained a gain or benefit.
2. Whether a nonbreaching party may recover eight-percent prejudgment interest under section 5-12-102(1)(b) for a breach of contract from the time of breach.
3. Whether Landfill's failure to excavate the gravel constituted wrongful withholding even though Mesa retained a contractual right to excavate the gravel itself.

Disposition

reversed_and_remanded