Innoventions Toys, LLC v. MGA Entertainment, Inc., No. 07-6510, slip op. (E.D. La. June 17, 2013).
After a long battle resulting in a jury verdict of more than $1.5 Million, the Innoventions court awarded pre- and post-judgment interest to Plaintiff.
A jury awarded Plaintiff damages for lost profits and a reasonable royalty. Id., slip op. at 10. Plaintiff filed a motion seeking, inter alia, pre- and post-judgment interest. Id.
Prejudgment Interest – Citing General Motors v. Devex, the court observed prejudgment interest should ordinarily be awarded. Id. at 58. After dissecting the parties’ arguments, the court concluded an award of prejudgment interest at the prime rate, compounded annually, would put the Plaintiff in as good a position as it would have been had Defendant paid the reasonable royalty awarded by the jury. Id. at 60. The court viewed the award of interest at the prime rate as the fairest way to achieve the compensatory purpose of prejudgment interest. Id. Finally, the court indicated it would determine the precise amount of interest on the date judgment is entered. Id.
Post-Judgment Interest – The court awarded post-judgment interest calculated from the date of judgment at a rate equal to the average one-year constant maturity U.S. Treasury yield pursuant to 28 U.S.C. §1961(a), Id. at 60. The award applies to all elements of the judgment, including damages and prejudgment interest. Id. at 60-61.