Source or Prior Law:

L. 1863, ch. 33, § 1; G.S. 1868, ch. 51, § 1; L. 1871, ch. 95, § 1; 41-101.

Law Review and Bar Journal References:

"The New Kansas Consumer Legislation," Barkley Clark, 42 J.B.A.K. 147, 194 (1973).

Interest on a modified judgment, 14 W.L.J. 400 (1975).

Public utility late charges, 26 K.L.R. 595 (1978).

"Interest Rates in Kansas: The Decline and Fall of Ezekiel," Barkley Clark, 49 J.B.A.K. 81, 95 (1980).

"New Kansas Usury Laws and Interest Rate Regulation," Robert G. Martin, 20 W.L.J. 572 (1981).

"Interest on Legal Fees," Calvin J. Karlin, 58 J.K.B.A. No. 5, 23, 24 (1989).

"Liquidated Damages - When is the Claimant Entitled to Prejudgment Interest?" Mary E. Christopher and Michelle M. Watson, 74 J.K.B.A. No. 5, 14 (2004).

"2013 Legislative Session Report," Callie Jill Denton, 36 J.K.A.J. No. 6 (2013).

Attorney General's Opinions:

Cable television company; late payment charges; "interest" and "finance charge." 88-30.

CASE ANNOTATIONS

1. Computation of interest, before and after judgment, considered. Robinson v. Kinney, 2 Kan. 184; Searle v. Adams, 3 Kan. 515.

2. Sale of land; interest computed from tender of deed. Craft v. Bent, 8 Kan. 328.

3. Interest cannot be claimed on an open and running account. Williams v. Hersey, 17 Kan. 18, 21.

4. Jury must determine reasonableness or unreasonableness of the delay. Stettauer v. Carney & Stevens, 20 Kan. 474, 494.

5. Interest upon a recognizance runs from time of forfeiture. Swerdsfeger v. The State, 21 Kan. 475, 478.

6. Interest due from time of delivery of goods. Gas Co. v. Schliefer, 22 Kan. 468; Sturges v. Green, 27 Kan. 235, 238.

7. Deposit in court; recovery of less amount; no interest allowed. Reisner v. Union Depot & Rld. Co., 27 Kan. 382.

8. Interest allowed upon money wrongfully collected and withheld. Turner v. Otis, 30 Kan. 1, 1 P. 19.

9. Mesne profits received by party, counterbalance interest due. Stebbins v. Wolf, 33 Kan. 765, 7 P. 542.

10. Interest on penal bond collectible from time of breach. Burchfield v. Haffey, 34 Kan. 42, 7 P. 548.

11. No recovery of interest on value of animal killed. A.T. & S.F. Rld. Co. v. Gabbert, 34 Kan. 132, 8 P. 218.

12. Interest allowable, action for value of land appropriated by railroad company. Cohen v. St. L., Ft. S. & W. Rld. Co., 34 Kan. 158, 8 P. 138.

13. Rate of interest agreed upon by parties allowed. Service v. Watson, 37 Kan. 750, 16 P. 55.

14. When no agreement exists deferred payments will bear legal rate. Everett v. Dilley, 39 Kan. 73, 17 P. 661.

15. Interest recoverable on balance due on account; agreement of parties. Tootle v. Wells, 39 Kan. 452, 18 P. 692.

16. Contract for higher rate of interest must be in writing. Wenger v. Taylor, 39 Kan. 754, 18 P. 911.

17. Interest not recoverable in action for damages caused by fire. A.T. & S.F. Rld. Co. v. Ayers, 56 Kan. 176, 183, 42 P. 722.

18. No interest on unliquidated damages between finding and rendering judgment. Milling Co. v. Buoy, 71 Kan. 293, 296, 80 P. 591.

19. County not liable for interest on taxes wrongfully exacted. Jackson County v. Kaul, 77 Kan. 715, 717, 96 P. 45.

20. Upon redemption of mortgage, interest charged in mortgage controls. Clark v. Nichols, 79 Kan. 612, 615, 100 P. 626.

21. Contract for higher rate of interest must be in writing. Walter, Adm'r, v. Calhoun, 88 Kan. 801, 129 P. 1176.

22. No interest allowed on money withheld during bona fide dispute. Trust Co. v. Robinson, 89 Kan. 842, 849, 132 P. 979.

23. No interest accrued on unliquidated damages before final judgment. Roe v. Snattinger, 91 Kan. 567, 138 P. 581.

24. Recovery of overpayments of debt, interest allowed. Smith Bros. v. Hanson, 106 Kan. 32, 38, 187 P. 262.

25. Creditor of failed bank entitled to 6 percent interest on claims from date of failure. Colorado & S. Rly. Co. v. Docking, 124 Kan. 48, 54, 257 P. 743; Fetty v. Adams, 124 Kan. 679, 683, 261 P. 835.

26. Accident insurance company liable for interest from date notified of injury. Beeler v. Continental Casualty Co., 125 Kan. 441, 447, 265 P. 57.

27. When no agreement, legal rate prevails. McDermott v. Sterling, 133 Kan. 521, 552, 1 P.2d 78.

28. Interest recoverable on indemnity contract from time of default. Peoples Exchange Bank v. Miller, 139 Kan. 3, 5, 29 P.2d 1079.

29. Tender of amount due held to excuse defendant from paying interest. Todd v. Stewart Sand & M. Co., 140 Kan. 71, 78, 34 P.2d 105.

30. Section applied to county warrants not paid for want of funds. First Nat'l Bank v. Wabaunsee County Comm'rs, 145 Kan. 552, 555, 557, 66 P.2d 558.

31. Corporation repeatedly charging usurious rate may be enjoined by state. State, ex rel., v. Basham, 146 Kan. 181, 182, 183, 70 P.2d 24.

32. Premium tax levied against insurance company draws 6 percent interest from date assessed. Equitable Life Assurance Society v. Hobbs, 155 Kan. 534, 539, 127 P.2d 477.

33. Accounting action for money due; interest properly allowed from date due. Potts v. Lux, 168 Kan. 387, 413, 214 P.2d 277.

34. Applicability of section mentioned in action on gas purchase contract. Northern Natural Gas Co. v. Republic Natural Gas Co., 172 Kan. 450, 467, 241 P.2d 708.

35. Section inapplicable where principal amount undetermined. Columbian Fuel Corp. v. Panhandle Eastern Pipe Line Co., 176 Kan. 433, 443, 271 P.2d 773.

36. Interest in action for damages not allowable until amount becomes liquidated. Geier v. Eagle-Cherokee Coal Mining Co., 181 Kan. 567, 568, 578, 313 P.2d 243.

37. Interest rate not specified in contract for real estate mortgage; section applicable. Price v. Brodrick, 183 Kan. 71, 77, 325 P.2d 387.

38. Interest allowed from date entire amount of workmen's compensation award became due and payable. Fleming v. National Cash Register Co., 188 Kan. 571, 572, 577, 363 P.2d 432.

39. Unliquidated claims do not draw interest until amount due ascertained. Leader Clothing Co. v. Fidelity & Casualty Co. of N.Y., 237 F.2d 7, 8, 12.

40. Obligations created by definite contract provisions; no recovery preclusion; interest on sums due. Kansas Power & Light Co. v. Hugoton Production Co., 251 F.2d 946, 947, 949.

41. Interest allowed only from execution dates of stipulations covering insurance policies. Millers' Nat. Ins. Co., Chicago, Ill., v. Wichita Flour M. Co., 257 F.2d 93, 95, 103.

42. Construed; insurance claim held liquidated and interest recoverable. Smart v. Hardware Dealers Mutual Fire Insurance Co., 181 F. Supp. 575, 578.

43. Statutory interest allowed on unpaid royalties. Schupbach v. Continental Oil Co., 193 Kan. 401, 408, 394 P.2d 1.

44. Space concerning interest filled in after note executed; Kansas law applicable. National Packing Co. v. Century Provision Co., 354 F.2d 7, 8, 9.

45. Interest allowed on balance due on plaintiff's account did not amount to splitting plaintiff's cause of action nor constitute separate and additional judgment. Phelps Dodge Copper Products Corp. v. Alpha Construction Co., 203 Kan. 591, 599, 455 P.2d 555.

46. Applied; workmen's compensation action under K.S.A. 44-512a; no statutory provisions for stay pending appeal. Casebeer v. Alliance Mutual Casualty Co., 203 Kan. 697, 698, 456 P.2d 152.

47. Cited; interest not allowed as element of damages on claim based on breach of covenant of seisin. Maxwell v. Redd, 209 Kan. 264, 272, 496 P.2d 1320.

48. Statute establishes lawful rate of interest at 6 percent per annum when no rate agreed upon by parties. Bloch v. Fedak, 210 Kan. 63, 66, 499 P.2d 1052.

49. Award of interest to subcontractor who prevailed in Miller Act action against contractor and its surety. Arnold v. United States, 470 F.2d 243, 246.

50. Prejudgment interest allowed on gas lease royalties because of unreasonable and vexatious delay of payment of royalty account. Lippert v. Angle, 211 Kan. 695, 703, 704, 508 P.2d 920.

51. Mentioned; class action against gas utility contesting legality of late charge assessments made by utility. Tennyson v. Gas Service Company, 367 F. Supp. 102, 103.

52. Judgment modified on appeal; prejudgment interest and interest of modified judgment determined. Lippert v. Angle, 215 Kan. 626, 627, 527 P.2d 1016.

53. Customers of utility companies had remedy in state courts and could not bring action in federal court; action challenging legality of late assessment charges. Tennipaw v. Gas Service Co., 506 F.2d 1135, 1136.

54. Interest recoverable from Kansas Public Employees Retirement System where benefits wrongfully withheld from member's beneficiary. Shapiro v. Kansas Public Employees Retirement System, 216 Kan. 353, 354, 355, 532 P.2d 1081.

55. Prejudgment interest disallowed; no meeting of minds on amount of commission; no express contract. Campbell-Leonard Realtors v. El Matador Apartment Co., 220 Kan. 659, 666, 556 P.2d 459.

56. "Late payment charges" are not interest. Jones v. Kansas Gas and Electric Co., 222 Kan. 390, 392, 397, 398, 565 P.2d 597.

57. Section inapplicable; contract for interest existed. Shutts, Executor v. Phillips Petroleum Co., 222 Kan. 527, 563, 567 P.2d 1292.

58. Method used in computing interest due on suspense royalties modified. Sterling v. Marathon Oil Co., 223 Kan. 686, 688, 576 P.2d 635.

59. Mentioned; section not applicable to the interest rate due purchaser at foreclosure sale from redeeming owner. Capitol Fed'l Savings & Loan v. Youker, 4 Kan. App. 2d 379, 380, 607 P.2d 80.

60. Section does not dictate a rate of interest to be surcharged a trustee for failure to invest trust funds. Burch v. Dodge, 4 Kan. App. 2d 503, 508, 509, 608 P.2d 1032.

61. Cited in allowing interest where S.R.S. wrongly withheld payment to nursing homes after the homes had performed contractual obligations. Seneca Nursing Home v. Secretary of S.R.S., 604 F.2d 1309, 1310, 1315.

62. Proper statute to be applied in inverse condemnation cases where prejudgment interest is awarded as damages from date property is taken until date of judgment. Herman v. City of Wichita, 228 Kan. 63, 67, 68, 612 P.2d 588.

63. Applicability of prejudgment interest discussed. Equity Investors, Inc. v. Academy Ins. Group, Inc., 229 Kan. 456, 459, 625 P.2d 466.

64. In the absence of an agreement to pay interest, the seller is only entitled to statutory interest provided under this section before judgment and under K.S.A. 16-204 after judgment. Jerry L. Phillips v. Ratley, 6 Kan. App. 2d 157, 161, 162, 627 P.2d 339.

65. Rate of interest to be awarded pursuant to K.S.A. 17-6712 must not be less than rate payable hereunder. Moore v. New Ammest, Inc., 6 Kan. App. 2d 461, 473, 630 P.2d 167 (1981).

66. Insurance proceeds ultimately paid to executor of deceased's estate subject to prejudgment interest as determined by sound discretion of trial court. Mitchelson v. Travelers Ins. Co., 229 Kan. 567, 571, 629 P.2d 143 (1981).

67. Plaintiffs entitled to prejudgment interest on liquidated claims. Delano v. Kitch, 663 F.2d 990, 1001 (1981).

68. Where liquidated sum is owed upon revocation of acceptance, prejudgment interest calculated from date of purchase. Johnson v. General Motors Corp., 233 Kan. 1044, 1053, 668 P.2d 139 (1983).

69. Interest paid on money borrowed to repair insured combine not limited hereunder where insurer failed to timely pay claim. Hochman v. American Family Ins. Co., 9 Kan. App. 2d 151, 152, 673 P.2d 1200 (1984).

70. Where employee seeks remedy for willful nonpayment of wages under K.S.A. 44-313 et seq., interest hereunder not mandatory. Weinzirl v. The Wells Group, Inc., 234 Kan. 1016, 1023, 677 P.2d 1004 (1984).

71. Statutory rate applies unless parties contract otherwise; mere charge on invoice insufficient to establish contract. Scott v. Strickland, 10 Kan. App. 2d 14, 24, 691 P.2d 45 (1984).

72. Employee improperly dismissed due to armed forces reservist inactive duty training entitled to prejudgment interest on back pay award. Sawyer v. Swift & Co., 610 F. Supp. 38, 43 (1985).

73. Cited; plaintiff's interest liability on state court judgment in underinsured motorist provision examined. Horace Mann Ins. Co. v. Ammerman, 630 F. Supp. 114, 119 (1986).

74. Usury laws have no application where true lease exists. Wight v. Agristor Leasing, 652 F. Supp. 1000, 1014 (1987).

75. Cited; discretion of trial court to award prejudgment interest when one party had use of money while other deprived thereof examined. Farmers State Bank v. Production Cred. Ass'n of St. Cloud, 243 Kan. 87, 103, 755 P.2d 518 (1988).

76. Knowledge of credit terms and continued business with co-op resulted in implied agreement to pay 18% interest rate. Atchison County Farmers Union Co-Op Ass'n v. Turnbull, 241 Kan. 357, 363, 736 P.2d 917 (1987).

77. Cited; conservator's liability for violating statutory duties (K.S.A. 59-3019) examined. In re Conservatorship of Marcotte, 243 Kan. 190, 198, 756 P.2d 1091 (1988).

78. Indemnitor liable for ten percent interest on settlement entered into between injured party and indemnitee from date of settlement. Missouri Pac. R. Co. v. Kansas Gas & Elec. Co., 862 F.2d 796, 801 (10 th Cir. 1988).

79. Fact that good faith controversy existed did not preclude granting of prejudgment interest in particular case. Crawford v. Prudential Ins. Co. of America, 13 Kan. App. 2d 452, 458, 773 P.2d 678 (1989); rev'd, 245 Kan. 724, 737, 783 P.2d 900 (1989).

80. Time period and amount of award for failing to provide permanent state employee due process hearing on demotion examined. Kansas Dept. of SRS v. Goertzen, 245 Kan. 767, 770, 783 P.2d 1300 (1989).

81. Claim for prejudgment interest considered in action on contractors performance bond. Blinne Contracting v. Bobby Goins Enterprises, 715 F. Supp. 1044, 1046 (1989).

82. Error to calculate interest from date employment agreement breached when amounts specifically became due periodically thereunder. Wylie v. Marley Co., 891 F.2d 1463, 1472, 1473 (1989).

83. Irrelevant that liability disputed if amount of damages is certain in breach of contract action. Royal College Shop v. Northern Ins. Co. of N.Y., 895 F.2d 670, 673, 674, 675 (1990).

84. Mechanics' lienholders entitled to prejudgment interest on amounts due provided amounts due are liquidated. J. Walters Constr. Co. v. Greystone South Partnership, 15 Kan. App. 2d 689, 700, 817 P.2d 201 (1991).

85. Trial court's refusal to award prejudgment interest on insurance proceeds held in constructive trust examined. Hile v. DeVries, 17 Kan. App. 2d 373, 375, 836 P.2d 1219 (1992).

86. Prejudgment interest denied where amount of damages known but legal liability in question until judgment rendered. Kilner v. State Farm Mut. Auto. Ins. Co., 252 Kan. 675, 686, 687, 847 P.2d 1292 (1993).

87. Whether plaintiff entitled to prejudgment interest on claim defendant's negligence diminished value of airplane examined. Whittenburg v. L.J. Holding Co., 838 F. Supp. 519, 520 (1993).

88. Whether federal court should look to state law to determine rate of prejudgment interest examined. Van Hoove v. Mid-America Bldg. Maintenance, Inc., 841 F. Supp. 1523, 1537 (1993).

89. When damages are liquidated for purposes of awarding prejudgment interest examined. Green Const. Co. v. Kansas Power and Light Co., 1 F.3d 1005, 1010 (1993).

90. Whether party may assert prejudgment interest claim not specified in pretrial conference order examined. St. Francis Regional Med. Center v. Weiss, 254 Kan. 728, 754, 869 P.2d 606 (1994).

91. Whether section's provision providing for award of prejudgment interest in contract action applied to straight tort case examined. Citizens State Bank v. Shearson Lehman Bros., Inc., 874 F. Supp. 307, 310 (1994).

92. Whether court erred in failing to award prejudgment interest on liquidated claim examined. Federal Land Bank of Wichita v. Vann, 20 Kan. App. 2d 635, 641, 890 P.2d 1242 (1995).

93. Whether prejudgment interest rate should be calculated at statutory or liquidated rate examined. Zenda Grain & Supply Co. v. Farmland Industries, Inc., 20 Kan. App. 2d 728, 754, 894 P.2d 881 (1995).

94. Plaintiff not entitled to prejudgment interest where debt owed was not a liquidated sum. Torre v. Federated Mut. Ins. Co., 906 F. Supp. 616, 618 (1995).

95. Denial of prejudgment interest on award of damages which were not yet liquidated upheld. Lisbon v. Heatcraft, Inc., 23 Kan. App. 2d 374, 378, 930 P.2d 1096 (1997).

96. State statutory 10% interest rate was reasonable amount for prejudgment interest in federal reverse gender discrimination action. Barrick v. Cisneros, 953 F. Supp. 341, 342 (1997).

97. Prejudgment interest rate award of half the statutory rate held appropriate for plaintiff's back pay award. Baty v. Williamette Industries, Inc., 985 F. Supp. 987, 999 (1997).

98. Trial court did not err by ruling claim was liquidated in awarding prejudgment interest. Hamilton v. State Farm Fire & Cas. Co., 263 Kan. 875, 883, 953 P.2d 1027 (1998).

99. Trial court did not err in awarding prejudgment interest on liquidated damages. Home Bank Tr. Co. v. Cedar Bluff Cattle Feeders, Inc. 25 Kan. App. 2d 152, 160, 959 P.2d 934 (1998).

100. Reversal of summary judgment rendered award of court costs and attorney fees premature. Reynolds-Rexwinkle Oil, Inc. v. Petex, Inc., 25 Kan. App. 2d 707, 716, 969 P.2d 906 (1998).

101. Subcontractor was entitled to 10% interest from expiration of 30-day period arbitrator gave contractor to pay award. U.S. ex rel. Nat. Roofing Sev. v. Lovering-Johnson, 53 F. Supp. 2d 1142, 1148 (1999).

102. Indemnitee's claim became liquidated entitling indemnitee to prejudgment interest when it demanded payment. Oakview Treatment Centers of Kan., Inc., v. Garret, 53 F. Supp. 2d 1196, 1209 (1999).

103. Bank holding security interest in accounts receivable wrongfully setoff was entitled to prejudgment interest. Commerce Bank, N.A. v. Chrysler Realty Corp., 76 F. Supp. 2d 1113, 1123 (1999).

104. Grant of prejudgment interest on liquidated claim is not precluded by controversy as to whether party is liable. Mitchell v. Liberty Mut. Ins. Co., 271 Kan. 684, 24 P.3d 711 (2001).

105. Prevailing plaintiff on fraud by silence claim not entitled to prejudgment interest where damages incurred not easily ascertainable. Safety Technologies, L.C. v. Biotronix 2000, Inc., 136 F. Supp. 2d 1169, 1175 (2001).

106. Surety assigned claims of insured where insurer refused to defend entitled to prejudgment interest. Fidelity & Deposit Co. of MD. v. Hartford Cas. Ins., 215 F. Supp. 2d 1171, 1194 (2002).

107. Settlor of trust was entitled to prejudgment interest from date of each misappropriation of trust funds. Stafford v. Crane, 241 F. Supp. 2d 1239, 1247 (2002).

108. Prejudgment interest rate of 10 percent annually from date of arbitrators award equitable under circumstances of case. Kalmar Indus. v. Intern. Broth. Team Local 838, 452 F. Supp. 2d 1154, 1167 (2006).

109. Prejudgement interest for insurer's failure to pay accrued from date insurer provided valid claim with sufficient proof of loss. Hofer v. UNUM Life Ins. Co. of America, 441 F.3d 872, 880 (2006).

110. Prejudgment interest proper; lien claim became fixed and liquidated as of date appellants became owners of property. Owen Lumber Co. v. Chartrand, 283 Kan. 911, 927, 156 P.3d 1109 (2007).

111. Prejudgment interest on liquidated damages lies within district court's discretion. GFSI, Inc. v. J-Loong Trading, Ltd., 505 F. Supp. 2d 935, 947 (2007).

112. Prejudgment interest award in aircraft buyers' breach of contract action against sellers accrued starting from date of buyers' final letter of demand for refund. Ireland v. Dodson, 704 F. Supp. 2d 1128 (D. Kan. 2010).

113. Under Kansas law, the court awarded post-judgment interest in airplane manufacturer's action against supplier, where the case was issued in Kansas, was against a Kansas company, and was determined by an arbitration panel applying Kansas law. Cessna Aircraft Co. v. Avcorp Industries, Inc., 943 F. Supp. 2d 1191 (D. Kan. 2013).

114. Prejudgment interest is allowable on liquidated claims. Boardwalk Apts. v. State Auto Property & Cas. Ins., 11 F. Supp. 3d 1062 (2014).