Monessen Southwestern R. Co. v. Morgan

In Monessen Southwestern R. Co. v. Morgan, 486 U.S. 330 (1988), the court considered an award of prejudgment interest in an FELA case brought in the state courts of Pennsylvania. Pennsylvania law provided that in every case a plaintiff was to receive prejudgment interest on any monetary award as additional damages for the party's delay in receiving compensation. ( Id. at p. 333.) Only where the defendant made a pretrial settlement offer and the plaintiff's recovery did not exceed 125 percent of that offer was prejudgment interest curtailed, and then only from the date the offer was made. (Ibid.) The Supreme Court noted that neither FELA nor the general federal interest statute expressly provides for prejudgment interest. ( Monessen v. Southwestern R. Co. v. Morgan, supra, 486 U.S. at p. 336.) The court held that Congress's failure to amend FELA to provide for such additional damages, although it had made such provision in certain other federal causes of action, indicated that Congress did not intend that prejudgment interest would be included as part of a FELA damages award. ( Id. at pp. 338-339.) The court was unwilling, as a matter of judicial prerogative, "to alter the longstanding apportionment between carrier and worker of the costs of railroading injuries." ( Id. at p. 339.) The high court held that "the question of what constitutes 'the proper measure of damages' under the FELA necessarily includes the question whether prejudgment interest may be awarded to a prevailing FELA plaintiff." (Monessen, supra, 486 U.S. at p. 335.) The court explained that "prejudgment interest is normally designed to make the plaintiff whole and is part of the actual damages sought to be recovered," and in addition, "prejudgment interest may constitute a significant portion of an FELA plaintiff's total recovery." (Ibid.) Thus the Supreme Court concluded that prejudgment interest "constitutes too substantial a part of a defendant's potential liability under the FELA for this Court to accept a State's classification of a provision such as Pennsylvania's rule adding delay damages in personal injury actions as a mere 'local rule of procedure.'" (Id. at pp. 336, 339 holding prejudgment interest is not available under the FELA.)