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Washington Arbitration Awards Don't Accrue Interest until Reduced to Judgment

The Washington state Department of Corrections (DOC) contracted with Fluor Daniel, Inc. to build a prison. But later contract disputes resulted in litigation. Arbitration resulted in an award to Fluor of $5,997,645 which was reduced to judgment shortly thereafter with interest from the date of the arbitrator's decision in the amount of $43,330.22. The DOC appealed the award of interest. The court of appeals reversed, and Fluor appealed.

On appeal, the Supreme Court of Washington noticed that interest on damage awards normally doesn't begin to accrue until the trial court has formally entered an order directing the payment of a sum certain. On that basis, the appellate court's denial of interest to Fluor was affirmed. See: State Department of Corrections v. Fluor Daniel, Inc., WA Supreme Court, 160 Wash.2d 786, 161 P.3d 372 (2007).

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Related legal case

State Department of Corrections v. Fluor Daniel, Inc.