DiLieto v. County Obstetrics & Gynecology Group, P.C.
CourtSupreme Court of Connecticut
Date FiledAugust 27, 2013
DocketSC18838
JudgePalmer; Zarella; DiPentima; Gruendel; Bear
StatusPublished
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Full Opinion
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MICHELE DILIETO ET AL. v. COUNTY OBSTETRICS
AND GYNECOLOGY GROUP, P.C., ET AL.
(SC 18838)
Palmer, Zarella, DiPentima, Gruendel and Bear, Js.
Argued December 3, 2012—officially released August 27, 2013
Steven D. Ecker, with whom were Rodney S. Margol
and, on the brief, William F. Gallagher, Hugh D.
Hughes, and C. Rufus Pennington III, for the appellant
(named plaintiff).
Jeffrey R. Babbin, for the appellees (named defen-
dant et al.).
Opinion
PALMER, J. The named plaintiff, Michele DiLieto,1
commenced this medical malpractice action against the
named defendant, County Obstetrics and Gynecology
Group, P.C. (County Obstetrics), and the defendants
Scott Casper, a physician employed by County Obstet-
rics, and Yale University School of Medicine,2 alleging
that they negligently had removed her reproductive
organs and pelvic lymph nodes. Following a trial, the
jury found the defendants liable and awarded $5,200,000
to the substitute plaintiff, Michael J. Daly, who was
DiLieto’s bankruptcy trustee.3 After awarding Daly
$5,886,113.64 in interest under the offer of judgment
statute, General Statutes (Rev. to 1997) § 52-192a,4 as
well as costs, the trial court rendered judgment for Daly
in the total amount of $11,110,045.79. The defendants
appealed to this court, and we affirmed the judgment
of the trial court except with respect to the amount of
interest awarded under § 52-192a, which we concluded
should have been calculated from the date of Daly’s
substitution as plaintiff rather than from the date that
the offer of judgment was filed. See DiLieto v. County
Obstetrics & Gynecology Group, P.C., 297 Conn. 105,
145, 154, 998 A.2d 730 (2010). We therefore remanded
the case to the trial court with direction to award offer
of judgment interest accruing from that date. Id., 164.
Thereafter, Daly filed a motion in the trial court for,
inter alia, postjudgment interest pursuant to General
Statutes (Rev. to 1995) § 37-3b.5 Prior to the filing of
that motion, Ronald I. Chorches had been substituted
for Daly as DiLieto’s bankruptcy trustee, and, during
the pendency of the motion, the trial court granted
DiLieto’s motion to substitute herself as the plaintiff.
The trial court denied that portion of the motion seeking
postjudgment interest under § 37-3b, concluding that
DiLieto had failed to demonstrate that the defendants
wrongfully detained money that was payable to her
under the judgment, the standard that this court has
deemed applicable to claims for interest under General
Statutes § 37-3a.6 On appeal,7 DiLieto contends that the
trial court should not have applied the wrongful deten-
tion standard of § 37-3a8 in declining to award postjudg-
ment interest under § 37-3b. We conclude that the
proper standard for an award of interest under § 37-3a
is the same standard for an award of interest under the
version of § 37-3b in effect before the 1997 amendment,
and that, under both provisions, a plaintiff who obtains
a judgment is entitled to interest when the trial court
determines, in the exercise of its sound discretion, that
such an award would be fair and equitable. We also
conclude that, although the trial court properly deter-
mined that the same standard applies to both provi-
sions, the standard that the court actually did apply
was incorrect. Accordingly, we reverse in part the judg-
ment of the trial court and remand the case to that court
for consideration of DiLieto’s request for postjudgment
interest under the correct legal standard.
The following undisputed facts and procedural his-
tory are relevant to our resolution of this appeal. Fol-
lowing our remand in DiLieto v. County Obstetrics &
Gynecology Group, P.C., supra, 297 Conn. 105, Daly
filed a motion for, inter alia, an award of postjudgment
interest under § 37-3b, calculated at the maximum statu-
tory annual rate of 10 percent, in the amount of
$1,769,146. The defendants opposed the motion, arguing
that, in accordance with Carrano v. Yale-New Haven
Hospital, 112 Conn. App. 767, 773–74, 963 A.2d 1117
(2009), the wrongful detention standard applicable to
an award of interest under § 37-3a applies to interest
awarded under § 37-3b. The defendants further main-
tained that, because their appeal was brought in good
faith, the money that was payable to Daly under the
judgment, which had been stayed automatically by
operation of Practice Book § 61-11,9 was not wrongfully
detained for the period that their appeal was pending.
DiLieto, who, by the time the court was considering
Daly’s motion, had been substituted as the plaintiff,
claimed that, under Gionfriddo v. Avis Rent A Car
System, Inc., 192 Conn. 301, 304–305, 472 A.2d 316
(1984), a party who recovers offer of judgment interest
under § 52-192a is entitled to postjudgment interest
under § 37-3b as a matter of law. She also argued that, to
the extent that Carrano holds that wrongful detention is
an element of an award of interest under § 37-3b, that
case was wrongly decided because it conflicts with
Gionfriddo and, furthermore, that, in contrast to § 37-
3a, § 37-3b does not contain language explicitly or
implicitly conditioning an award of interest on a finding
that money was wrongfully detained. She also argued
that, even if wrongful detention is a requirement under
§ 37-3b, that requirement was met in the present case
because this court determined in DiLieto v. County
Obstetrics & Gynecology Group, P.C., supra, 297 Conn.
105, that the defendants’ failure to compensate her for
her injuries was unreasonable beginning on January 27,
2000, the date on which the defendants were deemed
to have rejected her reasonable offers to settle. See
id., 158–59. According to DiLieto, if the defendants’
detention of the money due under the judgment was
sufficiently unreasonable to trigger six years of punitive
offer of judgment interest under § 52-192a, ‘‘then [a
fortiorari] their decision to withhold payment after [July
14, 2006] was sufficiently unreasonable to trigger [her]
entitlement to postjudgment interest under . . .
§ [37-3b].’’
The trial court agreed with the defendants that, under
Carrano, the wrongful detention standard of § 37-3a
also applies to an award of postjudgment interest under
§ 37-3b. The trial court further observed that, under
Hartford Steam Boiler Inspection & Ins. Co. v. Under-
writers at Lloyd’s & Cos. Collective, 121 Conn. App.
31, 994 A.2d 262, cert. denied, 297 Conn. 918, 996 A.2d
277 (2010), ‘‘in the context of [§ 37-3a], wrongful is not
synonymous with bad faith conduct. Rather, wrongful
means simply that the act is performed without the
legal right to do so.’’ (Internal quotation marks omitted.)
Id., 63. The trial court therefore concluded that, because
the judgment had been stayed by operation of Practice
Book § 61-11, the defendants had a legal right to with-
hold payment of the judgment while their appeal was
pending, and, consequently, their failure to pay the judg-
ment during the pendency of the appeal reasonably
could not be characterized as wrongful. Specifically,
the trial court stated: ‘‘[DiLieto has] presented no
authority to [impose] a legal obligation [on] the defen-
dants to [satisfy] the judgment while the appeal was
pending. Or, put another way, [she has] failed to show
that the defendants had no legal right to withhold pay-
ment during that time. . . . [The] court finds that the
defendants’ appeal [in DiLieto v. County Obstetrics &
Gynecology Group, P.C., supra, 297 Conn. 105] . . .
was bona fide and made in good faith. Taking into
account the circumstances of this case and all equitable
considerations, [the court concludes that] nothing has
been presented . . . by way of evidence or argument
to compel the conclusion that the money payable to
[DiLieto] under the judgment has been wrongfully
detained by the defendants.’’ In reaching its conclusion,
the court did not address DiLieto’s contention that
Gionfriddo established a right to postjudgment interest
as a matter of law when, as in the present case, the
plaintiff is entitled to offer of judgment interest under
§ 52-192a.
On appeal to this court, DiLieto claims that the trial
court incorrectly applied the wrongful detention stan-
dard of § 37-3a in concluding that she was not entitled
to postjudgment interest under § 37-3b. DiLieto also
renews her claim that she is entitled to § 37-3b interest
by virtue of our decision in Gionfriddo. Although we
are unpersuaded by DiLieto’s claim under Gionfriddo,
we agree that the trial court applied the wrong legal
standard in denying the motion for postjudgment inter-
est under the version of § 37-3b in effect before the
1997 amendment.10 In particular, we conclude that the
standard to determine an award of interest under § 37-
3a is no different from the standard to determine an
award of interest under the version of § 37-3b in effect
before the 1997 amendment and, further, that interest is
authorized under those provisions when the trial court
determines, in its discretion, that considerations of fair-
ness and equity warrant such an award. We also con-
clude that the trial court misperceived the standard
applicable under § 37-3a and that, because the court
applied that same incorrect standard to the motion at
issue, that portion of the judgment denying an award
of postjudgment interest must be reversed.
As with all claims involving statutory interpretation,
we begin our analysis with the language of the relevant
statutory provision. The applicable version of § 37-3b,
which was enacted in 1981; see Public Acts 1981, No.
81-315, § 2; provides: ‘‘For a cause of action arising on
or after October 1, 1981, interest at the rate of ten per
cent a year, and no more, may be recovered and allowed
in any action to recover damages for injury to the per-
son, or to real or personal property, caused by negli-
gence, computed from the date of judgment.’’ General
Statutes (Rev. to 1995) § 37-3b. Thus, by its plain terms,
§ 37-3b authorizes an award of postjudgment interest
in any negligence action, to be computed from the date
of judgment. It also is apparent that such an award is
discretionary because the statute provides that interest
at a rate of up to 10 percent per year ‘‘may be recovered
and allowed . . . .’’ (Emphasis added.) General Stat-
utes (Rev. to 1995) § 37-3b. As this court previously has
observed, the use of the term ‘‘ ‘may’ . . . ‘ordinarily
does not connote a command. Rather, the word gener-
ally imports permissive conduct and the conferral of
discretion.’ ’’ Weems v. Citigroup, Inc., 289 Conn. 769,
790 n.22, 961 A.2d 349 (2008).
In addition, the legislature amended § 37-3b in 1997
by replacing the word ‘‘may’’ with ‘‘shall,’’ thereby evi-
dencing an intent that postjudgment interest not
exceeding 10 percent is mandatory for actions governed
by the statute as amended. See P.A. 97-58, § 2; see also,
e.g., Stewart v. Tunxis Service Center, 237 Conn. 71,
78, 676 A.2d 819 (1996) (‘‘ ‘[t]he legislature’s use of the
word ‘‘shall’’ generally evinces an intent that the statute
be interpreted as mandatory’ ’’). This legislative geneal-
ogy leaves no doubt that the legislature, in amending
the statute, was seeking to convert § 37-3b from a stat-
ute that permitted an award of postjudgment interest
in the discretion of the trial court into one that mandates
such an award. Under the version of § 37-3b applicable
to the present case, therefore, the trial court had discre-
tion to award postjudgment interest.
The trial court concluded, however, that its discretion
to award interest on the judgment was constrained by
the wrongful detention standard of § 37-3a, which, in
the trial court’s view, was applicable to § 37-3b by virtue
of Carrano. The court further determined that, under
the wrongful detention standard, DiLieto was required
to prove that the defendants were legally obligated to
pay the judgment during the pendency of their appeal,
a showing that DiLieto could not make because the
judgment had been stayed automatically by operation
of Practice Book § 61-11. We conclude that, although
the standard for an award of interest is the same under
both § 37-3a and the version of § 37-3b in effect before
the 1997 amendment, the trial court misconstrued that
standard in denying DiLieto’s motion for postjudgment
interest under § 37-3b. As we explain more fully herein-
after, in the context of § 37-3a, a wrongful detention of
money, that is, a detention of money without the legal
right to do so, is established merely by a favorable
judgment on the underlying legal claim, so that the
court has discretion to award interest on that judgment,
without any additional showing of wrongfulness, upon
a finding that such an award is fair and equitable. Conse-
quently, contrary to the determination of the trial court,
the fact that a defendant has a legal right to withhold
payment under the judgment during the pendency of
an appeal is irrelevant to the question of whether the
plaintiff is entitled to interest under § 37-3a. We now
turn to a brief discussion and analysis of § 37-3a to
demonstrate why the trial court misconstrued the stan-
dard applicable to that provision.
Section 37-3a provides in relevant part: ‘‘(a) Except
as provided in sections 37-3b, 37-3c and 52-192a, interest
at the rate of ten per cent a year, and no more, may be
recovered and allowed in civil actions or arbitration
proceedings under chapter 909, including actions to
recover money loaned at a greater rate, as damages for
the detention of money after it becomes payable. . . .’’11
Like the version of § 37-3b in effect before the 1997
amendment, § 37-3a provides that interest ‘‘may be
recovered’’ and, therefore, ‘‘does not require an award
of interest in every case in which money has been
detained after it has become payable. Rather, an award
of interest is discretionary.’’12 Sosin v. Sosin, 300 Conn.
205, 228, 14 A.3d 307 (2011).
Although § 37-3a does not use the word ‘‘wrongful’’
to describe a compensable detention of money under
the statute, this court has long employed that term to
describe such a detention. See, e.g., Northrop v. Allstate
Ins. Co., 247 Conn. 242, 254–55, 720 A.2d 879 (1998)
(‘‘[P]rejudgment interest is awarded in the discretion
of the trial court to compensate the prevailing party for
a delay in obtaining money that rightfully belongs to
him. . . . The detention of the money must be deter-
mined to have been wrongful. . . . Its detention can
only be wrongful, however, from and after the date on
which the court, in its discretion, determines that the
money was due and payable.’’ [Citations omitted; inter-
nal quotation marks omitted.]). Our earliest cases inter-
preting § 37-3a reveal that the term ‘‘wrongful’’ invari-
ably was used interchangeably with ‘‘unlawful’’ to
describe the narrow category of claims for which pre-
judgment interest was allowed under the statute,
namely, claims to recover money that remained unpaid
after it was due and payable. See, e.g., Fox v. Schaeffer,
131 Conn. 439, 446, 41 A.2d 46 (1944) (‘‘[i]nterest would
be allowable because of the wrongful withholding from
the plaintiffs after that day of money which they were
entitled to receive’’); Wight v. Lee, 101 Conn. 401, 405,
126 A. 218 (1924) (‘‘[when] money belonging to another
is not paid over to the person entitled to receive it at
the time it should be paid over, interest is generally
allowed as damages for such wrongful withholding
thereof’’ [internal quotation marks omitted]); Winsted
Savings Bank v. New Hartford, 78 Conn. 319, 325, 62
A. 81 (1905) (‘‘reason and justice alike support the view
. . . that one who is unlawfully deprived of money
which is his due, should . . . be entitled to recover,
as damages for the unlawful detention, interest at not
less than the legal rate, unless he has otherwise
agreed’’); Loomis v. Gillett, 75 Conn. 298, 300–301, 53
A. 581 (1902) (‘‘[u]pon an action to recover damage[s]
for the nonpayment of [a] debt, the plaintiff is entitled
to recover damage[s] for the unlawful detention of the
sum due, measured by the amount of interest thereon
from the time it became due to the date of judgment’’).
Consistent with this precedent, we recently clarified
that, under § 37-3a, proof of wrongfulness is not
required ‘‘above and beyond proof of the underlying
legal claim.’’ Sosin v. Sosin, supra, 300 Conn. 230 n.18.
In other words, the wrongful detention standard of § 37-
3a is satisfied by proof of the underlying legal claim, a
requirement that is met once the plaintiff obtains a
judgment in his favor on that claim. Because, in the
present case, the trial court concluded that DiLieto was
required to prove, in addition to the underlying claim,
that the defendants’ detention of her money was
‘‘wrongful’’—a standard that, in the trial court’s view,
could be met only upon proof that the defendants were
actually obligated to pay the judgment during the pen-
dency of their appeal—the legal standard that the court
applied was incorrect.13 In view of the fact that the trial
court used an incorrect standard for purposes of § 37-
3a, the court necessarily was incorrect in applying that
same standard for purposes of § 37-3b.14
In fact, an award of interest under § 37-3a, like an
award of interest under the version of § 37-3b in effect
before the 1997 amendment, is discretionary with the
trial court. Interest is awarded under both provisions
when the court determines that such an award is appro-
priate to compensate the plaintiff for the loss of the
use of his or her money. ‘‘Basically, the question is
whether the interests of justice require the allowance
of interest as damages for the loss of use of money.’’
Bertozzi v. McCarthy, 164 Conn. 463, 466, 323 A.2d 553
(1973); see also 1 J. Berryman, Sutherland on the Law
of Damages (4th Ed. 1916) § 329, pp. 1030–31 (‘‘Interest
is [permitted] . . . as damages for not discharging a
debt when it ought to be paid. In this country the princi-
ple has long been settled that if a debt ought to be paid
at a particular time and is not then paid through the
default of the debtor, compensation in damages equal
to the value of money, which is the legal interest upon
it, [ought to] be paid during such time as the party is
in default. The important practical inquiry, therefore,
in each case in which interest is in question is, what is
the date at which this legal duty to pay, as an absolute
present duty, arose.’’ [Footnote omitted.]).
Like § 37-3a, § 37-3b does not identify the factors
to be considered by the trial court in exercising its
discretion under the statute. Accordingly, the court is
free to consider whatever factors may be relevant to
its determination. ‘‘Judicial discretion, however, is
always a legal discretion, exercised according to the
recognized principles of equity. . . . Such discretion
. . . imports something more than leeway in decision
making and should be exercised in conformity with the
spirit of the law and should not impede or defeat the
ends of substantial justice.’’ (Citation omitted; internal
quotation marks omitted.) Burton v. Browd, 258 Conn.
566, 569–70, 783 A.2d 457 (2001).
‘‘Inherent [therefore] in the concept of judicial discre-
tion is the idea of choice and a determination between
competing considerations. . . . A court’s discretion
must be informed by the policies that the relevant stat-
ute is intended to advance.’’ (Internal quotation marks
omitted.) Bank of New York v. Bell, 120 Conn. App. 837,
848, 993 A.2d 1022, cert. dismissed, 298 Conn. 917, 4
A.3d 1225 (2010). As we have indicated, regardless of
whether a statute provides for mandatory or discretion-
ary postjudgment interest, the policy behind any such
provision is to compensate the successful party for ‘‘the
loss of the use of the money that he or she is awarded
from the time of the award until the award is paid in
full.’’ Thames Talent, Ltd. v. Commission on Human
Rights & Opportunities, 265 Conn. 127, 144, 827 A.2d
659 (2003); see also Poleto v. Consolidated Rail Corp.,
826 F.2d 1270, 1280 (3d Cir. 1987) (‘‘[p]ostjudgment
interest represents the cost of withholding the amount
owed the plaintiff once that sum has been determined
in a court proceeding’’); Life Ins. Co. of Georgia v.
Johnson, 725 So. 2d 934, 943 (Ala. 1998) (postjudgment
interest is ‘‘just compensation to ensure that a money
judgment will be worth the same when it is actually
received as when it was awarded’’ [internal quotation
marks omitted]).
In the present case, the trial court did not exercise its
discretion in consideration of the equities, as required.
Rather, the court misconstrued the standard of § 37-3a
as requiring proof of wrongfulness over and above proof
of the underlying legal claim. Because the trial court
did not exercise the discretion contemplated by the
statute, its decision to deny DiLieto postjudgment inter-
est under § 37-3b cannot stand.15 See, e.g., Higgins v.
Karp, 243 Conn. 495, 504, 706 A.2d 1 (1998) (‘‘[when]
. . . the trial court is properly called [on] to exercise
its discretion, its failure to do so is error’’ [internal
quotation marks omitted]); State v. Lee, 229 Conn. 60,
73–74, 640 A.2d 553 (1994) (‘‘[i]n the discretionary
realm, it is improper for the trial court to fail to exercise
its discretion’’).
We, however, are unpersuaded by DiLieto’s con-
tention that, under Gionfriddo v. Avis Rent A Car Sys-
tem, Inc., supra, 192 Conn. 301, a party entitled to puni-
tive prejudgment interest under § 52-192a necessarily
is entitled to postjudgment interest under § 37-3a.16
Although DiLieto refers to certain language in Gion-
friddo that, on its face, may appear to support her
contention, we reject her claim because, in that case,
the issue of whether discretionary postjudgment inter-
est is mandatory when the prevailing party is entitled
to prejudgment interest under § 52-192a was not before
this court. The issue that we addressed, rather, was
whether, in ruling on a motion for offer of judgment
interest under § 52-192a, a trial court must compare
the offer of judgment to the verdict amount or to the
judgment amount, which, in Gionfriddo, included statu-
tory treble damages. See id., 304–305.
The trial court in Gionfriddo had determined that
the statutory damages award should not be included
in the comparison and, on that basis, concluded that the
plaintiff was not entitled to offer of judgment interest
because the offer of judgment had exceeded the verdict
amount. Id., 302. We reversed the judgment of the trial
court; see id., 310; concluding that an offer of judgment
is an offer to settle the entire case, including any counts
to which statutory damages may apply, and, therefore,
the trial court should have compared the offer of judg-
ment to the entire award under the judgment. See id.,
306–307. Because we were remanding the case to the
trial court for an award of interest under § 52-192a,
we considered an issue that the trial court had not
addressed but that was likely to arise on remand,
namely, whether interest authorized by § 52-192a con-
tinues to accrue until the judgment is paid in full or
terminates at the time of judgment. See id., 307–308. In
concluding that such interest terminates at the time
of judgment, we observed: ‘‘[T]he rules of § 52-192a
determine prejudgment interest, [whereas] the rules of
§ 37-3a determine postjudgment interest. Such a reading
is consistent with the directions for calculation speci-
fied in § 52-192a and the statutory ceiling provided in
§ 37-3a. Reading these two statutes in conjunction with
each other, as we must . . . we conclude that the plain-
tiff is entitled to 12 percent interest from . . . the date
when the offer of judgment was filed . . . until . . .
the date of the judgment. Thereafter, [the plaintiff] is
entitled to interest at the rate of 8 percent on whatever
amounts remain unpaid on the judgment rendered in
his favor.’’ (Citations omitted.) Id., 308. We also stated
that the plaintiff’s ‘‘entitlement to interest, under § 52-
192a, [was] superseded by statutory interest of 8 per-
cent, under § 37-3a, as of the date of the judgment
. . . .’’ Id., 310.
It is this language purporting to recognize the plain-
tiff’s ‘‘entitlement’’ to postjudgment interest under § 37-
3a that DiLieto relies on to support her claim of entitle-
ment to postjudgment interest under § 37-3b. Id. A
review of the records and briefs in Gionfriddo reveals
that the issue of whether postjudgment interest is auto-
matic under § 37-3a in cases in which the plaintiff is
entitled to prejudgment interest under § 52-192a was
not before this court because the defendant in that case
did not challenge the plaintiff’s entitlement to postjudg-
ment interest. The defendant simply argued that such
interest should be calculated at the annual rate of 8
percent pursuant to § 37-3a, rather than at the higher
annual rate of 12 percent pursuant to § 52-192a. Thus,
although we agreed with the defendant that § 37-3a
governed an award of postjudgment interest in that
case, we were not required to decide whether such
an award was mandatory. To the extent that we used
language suggesting that it was mandatory, we now
disavow any such suggestion.
This does not mean, however, that, on remand, the
trial court should not consider DiLieto’s entitlement to
offer of judgment interest in considering whether she
is entitled to postjudgment interest under § 37-3b. On
the contrary, the underlying conduct of the parties,
including the defendants’ rejection of DiLieto’s reason-
able offers to settle; see DiLieto v. County Obstetrics &
Gynecology Group, P.C., supra, 297 Conn. 158 (observ-
ing that ‘‘[the defendants had] rejected [DiLieto’s] rea-
sonable offers of judgment in favor of costly and
protracted litigation’’ and that, ‘‘on appeal, they simply
hope[d] to capitalize on the fact that DiLieto did not
understand that Daly [her bankruptcy trustee] was the
proper party to bring her claims against them’’); is cer-
tainly a relevant, equitable consideration.17 This is so
because the defendants had an opportunity, at a rela-
tively early stage in the litigation, to settle the case on
favorable terms, but elected not to do so, with the result
that DiLieto was deprived of the use of the money
owed to her by the defendants for a considerably longer
period of time than if the defendants had settled the
case in accordance with DiLieto’s reasonable offers of
judgment. Of course, a paramount factor for the trial
court to consider in deciding whether to award post-
judgment interest is the purpose of such interest,
namely, to compensate the prevailing party for the loss
of the use of the money owed from the date of the
judgment until the date that the judgment is paid. In
exercising its discretion under § 37-3b, the trial court
should identify any other factors or considerations that
may militate for or against an award of postjudgment
interest. In sum, the trial court should consider any and
all factors that are relevant to its determination.18 Of
course, the trial court’s discretion under § 37-3b
includes the discretion to choose a fair rate of interest
not to exceed 10 percent per annum. See General Stat-
utes (Rev. to 1995) § 37-3b.
The judgment is reversed insofar as the trial court
denied postjudgment interest and the case is remanded
for consideration of the named plaintiff’s request for
postjudgment interest in accordance with this opinion;
the judgment is affirmed in all other respects.19
In this opinion the other justices concurred.
1
Michele DiLieto’s husband, Robert DiLieto, also is a plaintiff. We refer
to Michele DiLieto by her surname throughout this opinion.
2
Thomas P. Anderson, Vinita Parkash, Babak Edraki, Peter E. Schwartz,
all of whom are physicians, and Yale-New Haven Hospital, also were named
as defendants but are no longer involved in the case or in this appeal. We
refer collectively to County Obstetrics, Casper and Yale University School
of Medicine as the defendants.
3
DiLieto and her husband; see footnote 1 of this opinion; commenced
this action on February 7, 1997. Because the DiLietos had filed for bankruptcy
protection prior thereto, their claims against the defendants were assets of
their bankruptcy estate. Consequently, Daly was substituted as the plaintiff,
but not until January 27, 2000.
4
General Statutes (Rev. to 1997) § 52-192a provides in relevant part: ‘‘(a)
After commencement of any civil action . . . seeking the recovery of money
damages, whether or not other relief is sought, the plaintiff may before trial
file with the clerk of the court a written ‘offer of judgment’ signed by him
or his attorney . . . offering to settle the claim underlying the action and
to stipulate to a judgment for a sum certain. The plaintiff shall give notice
of the offer of settlement to the defendant’s attorney . . . . Within thirty
days after being notified of the filing of the ‘offer of judgment’ and prior to
the rendering of a verdict by the jury or an award by the court, the defendant
or his attorney may file with the clerk of the court a written ‘acceptance
of offer of judgment’ agreeing to a stipulation for judgment as contained in
plaintiff’s ‘offer of judgment’. . . .
‘‘(b) After trial the court shall examine the record to determine whether
the plaintiff made an ‘offer of judgment’ which the defendant failed to accept.
If the court ascertains from the record that the plaintiff has recovered an
amount equal to or greater than the sum certain stated in his ‘offer of
judgment’, the court shall add to the amount so recovered twelve per cent
annual interest on said amount . . . . In those actions commenced on or
after October 1, 1981, the interest shall be computed from the date the
complaint in the civil action was filed with the court if the ‘offer of judgment’
was filed not later than eighteen months from the filing of such complaint.
If such offer was filed later than eighteen months from the date of filing of
the complaint, the interest shall be computed from the date the ‘offer of
judgment’ was filed. The court may award reasonable attorney’s fees in an
amount not to exceed three hundred fifty dollars, and shall render judgment
accordingly. . . .’’
All references in this opinion to § 52-192a are to the 1997 revision, unless
otherwise indicated.
5
Section 37-3b was amended by Public Acts 1997, No. 97-58, § 2 (P.A. 97-
58), and the amendment was applicable to causes of actions arising on or
after the effective date of the act, namely, May 27, 1997. Because the cause
of action in this case arose in 1995, the 1995 revision of § 37-3b, which
applies to causes of action arising on or after October 1, 1981, but before
May 27, 1997, is the provision applicable in the present case.
General Statutes (Rev. to 1995) § 37-3b provides: ‘‘For a cause of action
arising on or after October 1, 1981, interest at the rate of ten per cent a
year, and no more, may be recovered and allowed in any action to recover
damages for injury to the person, or to real or personal property, caused
by negligence, computed from the date of judgment.’’
Hereinafter, all references to § 37-3b in this opinion are to the 1995 revi-
sion, unless otherwise indicated.
For all claims arising on May 27, 1997, or thereafter, awards of interest
under § 37-3b are mandatory. See P.A. 97-58, § 2. The current revision of
§ 37-3b provides in relevant part: ‘‘(a) For a cause of action arising on or
after May 27, 1997, interest at the rate of ten per cent a year, and no more,
shall be recovered and allowed in any action to recover damages for injury
to the person, or to real or personal property, caused by negligence, com-
puted from the date that is twenty days after the date of judgment or the
date that is ninety days after the date of verdict, whichever is earlier, upon
the amount of the judgment. . . .’’ (Emphasis added.)
6
General Statutes § 37-3a provides in relevant part: ‘‘(a) Except as pro-
vided in sections 37-3b, 37-3c and 52-192a, interest at the rate of ten per
cent a year, and no more, may be recovered and allowed in civil actions or
arbitration proceedings under chapter 909, including actions to recover
money loaned at a greater rate, as damages for the detention of money after
it becomes payable. . . .’’
7
The plaintiff appealed to the Appellate Court from the judgment of the
trial court, and we transferred the appeal to this court pursuant to General
Statutes § 51-199 (c) and Practice Book § 65-2.
8
In accordance with its terms, § 37-3a authorizes an award of interest in
civil actions or arbitration proceedings as damages for the detention of
money after it becomes payable. See General Statutes § 37-3a; see also
footnote 11 of this opinion. As we explain more fully hereinafter, although
the word ‘‘wrongful’’ is not found in the statute, this court historically has
used that term to describe detentions of money that are compensable under
the statute. E.g., Blakeslee Arpaia Chapman, Inc. v. EI Constructors, Inc.,
239 Conn. 708, 735, 687 A.2d 506 (1997) (for purposes of determining whether
to award interest under § 37-3a, trial court first must determine whether
party against whom interest is sought ‘‘has wrongfully detained money due
the other party’’).
9
Practice Book § 61-11 provides in relevant part: ‘‘(a) Except where other-
wise provided by statute or other law, proceedings to enforce or carry out
the judgment or order shall be automatically stayed until the time to take
an appeal has expired. If an appeal is filed, such proceedings shall be stayed
until the final determination of the cause. . . .’’
10
We note that this case likely presents the only occasion on which we
will have to interpret and apply the version of § 37-3b in effect before the
1997 amendment because that provision applies only to claims accruing
prior to May 27, 1997. For negligence claims arising on that date or thereafter,
postjudgment interest is mandatory. See P.A. 97-58, § 2, codified at General
Statutes § 37-3b.
11
It is well established that ‘‘[§] 37-3a provides a substantive right [to
prejudgment interest] that applies only to certain claims.’’ Foley v. Hunting-
ton Co., 42 Conn. App. 712, 739, 682 A.2d 1026, cert. denied, 239 Conn. 931,
683 A.2d 397 (1996). ‘‘As early as 1814, [this] [c]ourt stated that [prejudgment]
‘interest [under § 37-3a] ought to be allowed only . . . where there is a
written contract for the payment of money on a day certain, as on bills of
exchange, and promissory notes; or where there has been an express con-
tract; or where a contract can be presumed from the usage of trade, or
course of dealings between the parties; or where it can be proved that the
money has been used, and interest actually made.’ Selleck v. French, [1
Conn. 32, 34 (1814)].’’ Travelers Property & Casualty Co. v. Christie, 99
Conn. App. 747, 764, 916 A.2d 114 (2007). Section 37-3a also authorizes
prejudgment interest in cases involving tortious injury to property when the
damages were capable of being ascertained on the date of the injury. See
Sosin v. Sosin, 300 Conn. 205, 235, 14 A.3d 307 (2011) (award of prejudgment
interest for damage to property ‘‘is limited to cases in which the damage is
of a sort [that] could reasonably be ascertained by due inquiry and investiga-
tion on the date from which the interest is awarded’’ [internal quotation
marks omitted]). Prejudgment interest is permitted in such cases on the
theory that ‘‘[a] loss of property having a definite money value is practically
the same as the loss of so much money; the loss of the use of the property
is practically the same as the loss of the use (or interest) of so much money.’’
1 J. Berryman, Sutherland on the Law of Damages (4th Ed. 1916) § 355, p.
1138. Thus, ‘‘[§ 37-3a] does not allow prejudgment interest on claims that
are not yet payable, such as awards for punitive damages; Westport Taxi
Service, Inc. v. Westport Transit District, [235 Conn. 1, 37, 664 A.2d 719
(1995)]; or on claims that do not involve the wrongful detention of money,
such as personal injury claims . . . . Gionfriddo v. Avis Rent A Car System,
Inc., [supra, 192 Conn. 307].’’ Foley v. Huntington Co., supra, 739. Prejudg-
ment interest is not permitted on such claims for the simple reason that,
until a judgment is rendered, ‘‘the person liable does not know what sum
he owe[s], and therefore cannot be in default for not paying.’’ 1 J. Berryman,
supra, § 347, p. 1092; see also Travelers Property & Casualty Co. v. Christie,
supra, 764 (‘‘requests for prejudgment interest [on] personal injury claims
do not typically constitute a claim for the wrongful detention of money
before the rendering of judgment . . . [because] damages are typically
uncertain [until that time]’’ [citation omitted; internal quotation marks omit-
ted]); Lockard v. Salem, 130 W. Va. 287, 294, 43 S.E.2d 239 (1947) (‘‘unless
a claim is liquidated, or readily susceptible of ascertainment by computation,
interest is not allowable until there is an ascertainment of the amount due’’).
Once a plaintiff’s damages are known, however, which typically occurs at
the time of judgment, they are due and payable for purposes of an award
of postjudgment interest under § 37-3a. See Gionfriddo v. Avis Rent A Car
System, Inc., supra, 308 (indicating that damages in negligence action are
payable at time of judgment); Foley v. Huntington Co., supra, 741–42 (same).
12
Section 37-3a is not limited by its terms to prejudgment interest, and,
consequently, as we have indicated, postjudgment interest also may be
awarded under that provision. ‘‘Prior to July of 1983, [however] pursuant
to statute, [postjudgment] interest was an automatic incident of [every]
judgment. General Statutes (Rev. to 1983) § 52-349 provided in [relevant]
part that after judgment was rendered upon a verdict, after denial of a
motion to set aside, or upon affirmation of that ruling on appeal, ‘legal
interest [on] the amount of the verdict from the time it was rendered shall
be collected on the execution upon the judgment.’ That statute was repealed
by No. 83-581 of the 1983 Public Acts, effective July 14, 1983.’’ Rizzo Pool
Co. v. Del Grosso, 240 Conn. 58, 68 n.12, 689 A.2d 1097 (1997). Since the
repeal of General Statutes (Rev. to 1983) § 52-349 in 1983, § 37-3a has served
as the source for postjudgment interest on claims to