Loughridge v. Goodyear Tire and Rubber Co.

281 F. Supp. 2d 1252, 2003 WL 22077581
CourtDistrict Court, D. Colorado
DecidedAugust 22, 2003
DocketCIV. 98-B-1302 (MJW), CIV. 98-B-1884 (MJW), CIV. 98-B-2118 (MJW), CIV. 98-B-227 (MJW), CIV. 99-B-345 (MJW), CIV. 99-B-488 (MJW), CIV. 00-B-388 (MJW), CIV. 01-B-571 (MJW)
StatusPublished

This text of 281 F. Supp. 2d 1252 (Loughridge v. Goodyear Tire and Rubber Co.) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Loughridge v. Goodyear Tire and Rubber Co., 281 F. Supp. 2d 1252, 2003 WL 22077581 (D. Colo. 2003).

Opinion

281 F.Supp.2d 1252 (2003)

Linda LOUGHRIDGE, William P. Loughridge, Jerry Hannah, Nancy Hannah, Donna L. Garth, Ronald Hochfield, and Marsha Hochfield, Balaju, L.L.C., a Colorado limited liability company, Dale V. Kesler, Judith A. Kesler, Rosemarie Glas, Christopher W. Congalton, Susan T. Congalton, Claire Beck, Dr. Calvin Daks and Carol Daks, Justine Parker, Howard G. Parker, Janet Sutterley, Randy Kilgore, Sue Taylor, Darrell Taylor, Janet G. Upton and Charles R. Upton, Robert B. Grossman, Gale K. Grossman, Mark A Lathrop, Susan K. Lathrop, Janice C. Meyer, Gary Q. Barnett and Julia Watson Barnett, Robert S. Julian and Corey Bender Mindlin, Addison L. Piper, Richard C. Raczuk, Claudette L. Raczuk, Thomas A. Hardilek, Sandra J. Hardilek, and Fuyu Farms, a Colorado general partnership, Donald K. Hagar, Leila M. Hagar, Donald M. Johnson, Teresa Y. Johnson, Steve Shuman, Karen Shuman, David Price, Mary Price, Tim Borden, Janet Borden, John W. Paul, Linda T. Paul, Marcus Meyer, Karrie Meyer, James C. Holzwarth, Niki K. *1253 Holzwarth, Martha W. Hibbard, Robert C. Comyn, Noelle L. Comyn, Kiefer Mendenhall, Mary Mendenhall, and William F. Gorog on behalf of the Grantor Retained Income Trust, Plaintiffs,
v.
GOODYEAR TIRE AND RUBBER COMPANY, an Ohio corporation, and Chiles Power Supply Company, Inc., d/b/a Heatway Radiant Floors and Snowmelting, a Missouri corporation, Defendants.

Nos. CIV. 98-B-1302 (MJW), CIV. 98-B-1884 (MJW), CIV. 98-B-2118 (MJW), CIV. 98-B-227 (MJW), CIV. 99-B-345 (MJW), CIV. 99-B-488 (MJW), CIV. 00-B-388 (MJW), CIV. 01-B-571 (MJW).

United States District Court, D. Colorado.

August 22, 2003.

*1254 Brian J. Berardini, Neal Keith Dunning, Brown, Berardini & Dunning, P.C., David L. Black, Holland & Hart, LLP, Denver, CO, James William Lee Gray, Holland & Hart, LLP, Greenwood Village, CO, Horton Perry Ryon, Ryon & Associates, Evergreen, CO, for plaintiffs.

David L. Lenyo, Matthew C. Ferguson, Aspen, CO, Roger P. Thomasch, Stephanie M. Stewart, Ballard, Spahr, Andrews & Ingersoll, LLP, Mary A. Westphal-Wells, Lawrence Michael Brooks, Jr., Wells, Anderson & Race LLC, Denver, CO, Matthew Allan Holmes, Walter Stephen Coursol, Stephen J. Tyde, Jr., Walberg, Dagner & Tucker, P.C., Centennial, CO, Craig A. Marvinney, Michael N. Ungar, Ulmer & Berne, LLP, Cleveland, OH, Kurtis B. Reeg, Leritz, Punkert & Bruning, PC, St. Louis, MO, Randall S. Herrick-Stare, Randall S. Herrick-Stare, Atty. at Law, Washington, DC, for defendants/cross-claimants/cross-defendants.

MEMORANDUM OPINION AND ORDER

BABCOCK, Chief Judge.

Plaintiffs brought suit in eight consolidated cases under Colorado state law against Defendants Goodyear Tire and Rubber Company ("Goodyear") and Chiles Power Supply d/b/a Heatway Radiant Floors and Snowmelting ("Heatway"). Goodyear and Heatway also brought cross-claims against each other. Following a seven-week jury trial, the jury returned verdicts that favored three of the Plaintiffs' remaining claims, but denied the other two. The jury declined to award either defendant's cross-claim. Plaintiffs now move for prejudgment interest. The motion is adequately briefed and oral argument would not materially aid its resolution. For the reasons set forth below, I grant the motion.

I. Facts

The facts of this case are set forth in Loughridge v. Goodyear Tire & Rubber Co., 192 F.Supp.2d 1175 (D.Colo.2002), and need not be fully repeated herein. At issue in this case was a hose manufactured for hydronic radiant heating systems. The systems circulate warm fluid under indoor flooring as an alternative to conventional heating systems, or under driveways and sidewalks to melt snow and ice. Goodyear manufactured and sold a hose, the Entran II, for use in Heatway's radiant systems. Plaintiffs tried claims for sale of a defective product, negligence, negligent failure to warn, violation of the Colorado Consumer Protection Act, and civil conspiracy against Goodyear. Some plaintiffs also tried remaining claims for violation of the Colorado Consumer Protection Act and civil conspiracy against Heatway. The claims generally asserted system failure and home damage caused by the defective Entran II hose.

*1255 After a seven-week trial, the jury returned verdicts in favor of all but one remaining Plaintiff and against Goodyear on three theories of recovery: strict liability, negligence, and negligent failure to warn. The jury found in favor of Goodyear and Heatway on Plaintiffs' claims for civil conspiracy and violation of the Colorado Consumer Protection Act. Though Heatway was not a defendant on the Plaintiffs' prevailing claims, the jury divided fault evenly between Goodyear and Heatway (as a non-party at fault), finding them each one-half liable for repair and replacement costs, but not liable for any diminution in value the systems may have caused the homes. The jury also awarded some Plaintiffs other reasonable costs or losses associated with the Entran II's failure. Neither defendant prevailed on its cross claim. Plaintiffs move for prejudgment interest.

II. Motion for Prejudgment Interest

Colorado Revised Statute § 5-12-102 provides for recovery of prejudgment interest,

at the rate of eight percent per annum compounded annually for all moneys or the value of all property after they are wrongfully withheld or after they become due to the date of payment or to the date judgment is entered, whichever first occurs. Colo.Rev.Stat. § 5-12-102(1)(b).

Goodyear does not challenge the Plaintiffs' entitlement to prejudgment interest. Likewise, Plaintiffs and Goodyear have stipulated to three separate amounts of prejudgment interest for each prevailing plaintiff. See Appendix A. The amounts correspond to computation of prejudgment interest from three distinct accrual dates until the date a verdict was reached on June 19, 2003. The parties have also submitted three per diem amounts corresponding to the same accrual dates for interest awarded on and after June 20, 2003. See Appendix B. Though the parties dispute the appropriate accrual dates for prejudgment interest, they do not dispute the mathematical calculations corresponding to each accrual date for each prevailing plaintiff. I therefore focus my analysis on the only remaining dispute at issue—the date from which, under Colorado law, prejudgment interest began to accrue.

A. Date of "Wrongful Withholding"

The purpose of section 5-12-102 is to discourage a person responsible for payment of a claim to stall and delay payment until judgment or settlement. Mesa Sand & Gravel Co. v. Landfill, Inc., 776 P.2d 362, 364 (Colo.1989). The section "recognizes the time value of money. It represents a legislative determination that persons suffer a loss when they are deprived of property to which they are legally entitled." Id. The section therefore "compensates the nonbreaching party for the loss of money or property to which he or she is otherwise entitled and thereby furthers the legislative purpose of section 5-12-102." Id. at 365. I construe the section in light of its legislative intent and purpose, "mindful that [it] should not be strictly construed." Id.

Plaintiffs contend that under Colo.Rev. Stat. § 5-12-102(1)(b) their repair, replacement, and other costs were "wrongfully withheld" from the time Entran II was installed in their respective homes because it was defective at that time.

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