Milwaukee v. Cement Div., National Gypsum Co. (1994)
- Docket
- 94-788
- Decided
- 1994-01-01
Summary
Question: Does the fact that a plaintiff's loss was primarily attributable to its own negligence, together with the existence of a genuine dispute over liability, justify a District Court's departure from the general rule that prejudgment interest should be awarded in maritime collision cases? Conclusion: No. In an 8-0 opinion delivered by Justice John Paul Stevens, the Court held that neither a good-faith dispute over liability nor the existence of mutual fault justifies the denial of prejudgment interest in an admiralty collision case. In calculating the amount of the loss for which the relatively innocent party is responsible, the Court found that a denial of prejudgment interest on the basis of mutual fault would unfairly penalize a party twice for the same mistake. "The existence of a legitimate difference of opinion on the issue of liability is merely a characteristic of most ordinary lawsuits. It is not an extraordinary circumstance that can justify denying prejudgment interest," wrote Justice Stevens. Justice Stephen G. Breyer took no part in the consideration or decision.