United Insurance Co. of America v. Chapman Industries

Summary

The Nevada Supreme Court held that NRS 92A.340, rather than the general interest statute NRS 99.040, governed prejudgment interest in a dissenting shareholder action because it was in effect when final judgment was entered. The court also held that the district court abused its discretion by awarding attorney fees and by allowing the entire judgment, including prejudgment interest, to accrue postjudgment interest. The court reversed those portions of the judgment and remanded for further proceedings.

Holdings

1. The statutory rate and method prescribed by NRS 92A.340 apply to the dissenting shareholder action even though the action commenced before NRS 92A.340 was enacted, because the statute was in effect when the final judgment was entered.
2. The district court manifestly abused its discretion by awarding attorney fees to the dissenting shareholders because United's argument that NRS 92A.340 governed was brought with reasonable grounds.
3. The district court erred by allowing the entire judgment, including prejudgment interest, to bear postjudgment interest because NRS 92A.340 requires a single interest calculation from the effective date of the action through the date of payment.

Questions Presented

1. Whether prejudgment interest in a dissenting shareholder action commenced before enactment of NRS 92A.340 should be calculated under the specific statute, NRS 92A.340, or the general interest statute, NRS 99.040.
2. Whether the district court abused its discretion by awarding attorney fees under NRS 18.010(2)(b) after United argued that NRS 92A.340 governed the interest calculation.
3. Whether the district court could allow the entire judgment, including prejudgment interest, to bear postjudgment interest when NRS 92A.340 governs the award of interest.

Disposition

reversed_and_remanded