Prejudgment Interest

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7^th Circuit Court of Appeals

Case Name: KR Enterprises, Inc., v. Zerteck Inc., et al.,

Case No.: 20-2069; 20-2155

Officials: EASTERBROOK, KANNE, and HAMILTON, Circuit Judges.

Focus: Prejudgment Interest

In 2016, a manufacturer of recreational vehicles delivered 21 new RVs to a group of affiliated dealers. Those dealers did not pay before the manufacturer went out of business. The dealers kept the RVs but have refused to pay the manufacturer’s secured creditor, which brought this suit to collect the accounts receivable. After the secured creditor assigned its rights to the owner of the manufacturer, the district court held a bench trial and found that the secured creditor’s assignee was entitled to payment of the purchase prices, minus some setoffs for warranty and rebate claims that the manufacturer had owed to the dealers on earlier RV sales. See KR Enterprises, Inc. v. Zerteck, Inc., 461 F. Supp. 3d 825 (N.D. Ind. 2020).

The defendant dealers have appealed, arguing they owe nothing for the RVs they received, at least not to this plaintiff. The secured creditor’s assignee has cross-appealed, arguing that the setoffs should not have been allowed and that it is entitled to prejudgment interest. We affirm in all respects.

Affirmed

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Derek A Hawkins is Corporate Counsel, at Salesforce.