Augusta Iron and Steel Works, Inc. v. Employers Ins. of Wausau, 87-8154

• Court: United States Courts of Appeals. United States Court of Appeals (11th Circuit)
• Citation: 835 F.2d 855
• Docket Number: No. 87-8154,87-8154
• Parties: AUGUSTA IRON AND STEEL WORKS, INC., Plaintiff-Appellee, Cross-Appellant, v. EMPLOYERS INSURANCE OF WAUSAU, Defendant-Appellant, Cross-Appellee.
• Decision Date: 15 January 1988

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835 F.2d 855 AUGUSTA IRON AND STEEL WORKS, INC., Plaintiff-Appellee,
Cross-Appellant,
v.
EMPLOYERS INSURANCE OF WAUSAU, Defendant-Appellant, Cross-Appellee. No. 87-8154. United States Court of Appeals,
Eleventh Circuit. Jan. 15, 1988.

John V. Burch, Bovis, Kyle & Burch, Matthew D. Williams, Atlanta, Ga., for defendant-appellant, cross-appellee.

Ted H. Clarkson, Knox & Zacks, Augusta, Ga., for plaintiff-appellee, cross-appellant.

Appeals from the United States District Court for the Southern District of Georgia.

Before HILL and FAY, Circuit Judges, and ALLGOOD ^*, Senior District Judge.

PER CURIAM:

This case comes to us on motions for summary judgment. The trial court found that the defendant, Employers Insurance of Wausau ("Wausau"), was liable for nearly $100,000 in interest payments. The trial court also found, however, that Wausau withheld the contested payments in good faith. Wausau appeals its liability for the interest payments; plaintiff, Augusta Iron and Steel Works, Inc. ("Augusta"), cross-appeals the finding of good faith. We affirm the summary judgment on the good faith issue but reverse the summary judgment for liability of interest since on that issue there still remains a material issue of fact.

I. BACKGROUND

On March 9, 1982, Augusta entered into a contract with Williams Bridge Company, Inc. ("Williams Bridge") to supply steel for the widening of several interstate bridges in Atlanta, Georgia. Williams Bridge originally agreed to pay $770,000 for the steel and to make the payments following the receipt of each shipment of steel. The contract provided that Augusta had the option of charging interest on past due accounts at the rate of 1.5% per month

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(18% PER ANNUM). WAUSAU INSURED WIlliams bridge's payment of the contract.

The first shipment of steel occurred on June 18, 1982. The first payment was for $186,981.41 and was due on July 10, 1982. Payment, however, was not made until August 27, 1982. When Williams Bridge finally made the payment, Augusta credited it against the principal. The records indicate that every other payment was also late and that Augusta applied all the payments against the principal and not against the interest. Williams Bridge's last payment, which left an unpaid balance of $13,276.40, took place in November, 1984.

Williams Bridge's financial condition deteriorated following the November payment, and it was forced to file for bankruptcy in June of 1985. Only one month earlier,...