House Passes Bill Providing Post-Judgment Interest to Contractors on Claims

Kegler Brown Construction Newsletter

Prime contractors on State public works have to operate with a separate set of rules than those which apply to private projects. A contractor who wishes to pursue a claim against the State must file suit against the State of Ohio in the Court of Claims. Although contractors have been fairly successful asserting contract claims in recent years, the State still maintained an inherent advantage in the event the matter was appealed in that contractors might receive pre-judgment interest, but would not receive post-judgment interest in the event the contractor elected to appeal in an attempt to recover a higher amount.

In that appeals could take a year or two and claim amounts often were for six or seven figures, this loss of post-judgment interest (even when the contractor ultimately prevailed on appeal) was a substantial amount and acted to discourage otherwise meritorious appeals. House Bill 60, promoted by both ASA and AGC, would eliminate that loophole, and allow contractors to receive post-judgment interest when they ultimately prevailed on their appeal. The Bill passed the House of Representatives unanimously and is now awaiting Governor Taft's signature. It is expected to become law soon.