Discover Growth Fund, LLC v. OWC Pharmaceutical Research Corp.
- Alvin Hellerstein
- 1:20-cv-02857-AKH
- U.S. District Court · Southern District of New York
- 1
In Discover Growth Fund v. OWC Pharmaceutical, Judge Hellerstein clarified that default judgment included 9% prejudgment interest from breach through final judgment.
Discover Growth Fund, LLC received a default judgment against OWC Pharmaceutical Research Corp. for $6,827,989.72 plus 9% prejudgment interest calculated from March 30, 2023, until final judgment.
What happened
Discover Growth Fund, LLC sued OWC Pharmaceutical Research Corp. for breach of contract. On May 8, 2023, the court granted Discover Growth Fund’s motion for default judgment and directed entry of judgment for $6,827,989.72 plus interest.
This supplemental order clarified what “plus interest” meant. The interest was prejudgment interest—the interest accruing before final judgment—calculated at the statutory rate of 9% per year from March 30, 2023, the date of the breach, until final judgment was entered.
Judge Alvin K. Hellerstein issued the supplemental order on May 10, 2023. It clarified the interest included in the previously granted default judgment.
The detailed version
- Discover Growth Fund, LLC v. OWC Pharmaceutical Research Corp. · No. 1:20-cv-02857-AKH
- Alvin Hellerstein
- May 10, 2023
Background
Discover Growth Fund, LLC brought a breach-of-contract claim against OWC Pharmaceutical Research Corp. The opinion states that the court granted Discover Growth Fund’s motion for default judgment on May 8, 2023. A default judgment is a judgment entered when a defendant has not defended the case. The court had instructed the Clerk to enter judgment for $6,827,989.72, plus interest.
Supplemental Clarification
The court issued this order to clarify the meaning of “plus interest.” It specified that the interest was prejudgment interest, meaning interest awarded for the period before final judgment. The interest must be calculated at the statutory rate of 9 percent per year, beginning on March 30, 2023—the date of OWC Pharmaceutical Research Corp.’s breach—and ending when final judgment is entered.
Disposition
The supplemental order clarified the interest component of the previously granted default judgment. Judge Alvin K. Hellerstein relied on authorities stating that a prevailing plaintiff on a breach-of-contract claim is entitled to prejudgment interest and that New York law sets the rate at 9 percent per year.
Read the full 1-page opinion on CourtListener, the free public archive maintained by the Free Law Project.