Arbitration Post-Award Interest In California

In Britz, Inc. v. Alfa-Laval Food & Dairy Co. (1995) 34 Cal. App. 4th 1085 [40 Cal. Rptr. 2d 700], the court held that a successful party to arbitration is entitled to postaward, prejudgment interest under Civil Code section 3287, subdivision (a). The Britz court held that a successful party to an arbitration is entitled to "recover damages certain" within the meaning of section 3287, subdivision (a) on the date the arbitrator renders his award. (34 Cal. App. 4th at p. 1106.) The court noted that "the arbitration award itself results in a new and fixed liability. Regardless of the individual elements that comprised that liability, respondents were entitled to payment of the fixed sum upon issuance of the award.. . . . Although the interest was pre-'judicial judgment,' it was post-'contractual judgment.' Any result that denied respondents this postaward interest would punish them for using arbitration instead of the court system to resolve their dispute with appellants." (Id. at p. 1107.)