Dennis v. Riezman Berger, P.C., SC 96038.
| Decision Date | 26 September 2017 |
| Docket Number | No. SC 96038.,SC 96038. |
| Citation | 529 S.W.3d 318 |
| Parties | Thomas DENNIS and Sonya Cherry, Appellants, v. RIEZMAN BERGER, P.C. and Mercy Hospital Jefferson, Respondents. |
| Court | Missouri Supreme Court |
529 S.W.3d 318
Thomas DENNIS and Sonya Cherry, Appellants,
v.
RIEZMAN BERGER, P.C. and Mercy Hospital Jefferson, Respondents.
No. SC 96038.
Supreme Court of Missouri, en banc.
Opinion issued September 26, 2017
Alexander J. Cornwell and Bryan E. Brody of Brody & Cornwell, St. Louis, for Thomas Dennis and Sonya Cherry.
Nelson L. Mitten and Paul A. Grote of Riezman Berger PC, St. Louis, and Nicholas G. Higgins of the Higgins Law Office, Eureka, for Riezman Berger and Mercy Hospital Jefferson.
W. Brent Powell, Judge
Thomas Dennis and Sonya Cherry appeal the circuit court's dismissal of their petitions against Mercy Hospital Jefferson and its collection law firm, Riezman Berger
P.C. The circuit court dismissed their petitions, which alleged, in part, the improper collection of post-judgment interest. The circuit court ruled the petitions failed to state a claim on which relief can be granted because nontort judgments automatically accrue post-judgment interest even when the judgments do not expressly award such interest. While the petitions may have adequately stated a claim for relief against Mercy Hospital and Riezman Berger for other reasons, this Court agrees with the circuit court's ruling that nontort judgments automatically accrue post-judgment interest. The circuit court's judgment is vacated, and the case is remanded for the circuit court to consider Dennis' and Cherry's remaining claims following the circuit court's dismissal of the claims related to post-judgment interest.1
I. Factual and Procedural History
Mercy Hospital provided medical services for both Thomas Dennis and Sonya Cherry in separate and unrelated circumstances. After Dennis and Cherry failed to pay for the services rendered, Mercy Hospital sued both Dennis and Cherry in separate actions for breach of contract. Dennis entered into a consent judgment in which he agreed to pay Mercy Hospital $850 plus court costs of $122.94. Similarly, Mercy Hospital obtained a default judgment from Cherry for an outstanding balance of $23,325.30. Neither the consent judgment nor the default judgment expressly provided for the recovery of post-judgment interest pursuant to § 408.040, RSMo Supp. 2013.2
Mercy Hospital, through its counsel, Riezman Berger, sought to execute on the judgments and collect the amounts it was owed, including post-judgment interest. Dennis and Cherry, in separate petitions, sued Mercy Hospital and Riezman Berger for violating the Federal Debt Collection Practices Act and the Missouri Merchandising Practices Act, asserting, among other allegations, the underlying breach-of-contract judgments did not expressly award post-judgment interest. The petitions alleged Mercy Hospital was not entitled to post-judgment interest and attempts to collect it were fraudulent.
Both Mercy Hospital and Riezman Berger filed motions to dismiss the petitions for failure to state a claim on which relief can be granted. Riezman Berger argued in its motions that § 408.040 does not require nontort judgments to expressly award post-judgment interest in order for it to bear such interest. Mercy Hospital included no legal reasoning in its motions.
After the cases were consolidated, the circuit court sustained all the motions to dismiss because the petitions failed to state a claim on which relief could be granted. Dennis and Cherry appealed and, after opinion by the court of appeals, this Court transferred the case pursuant to article V, § 10 of the Missouri Constitution.
II. Analysis
Dennis and Cherry argue in their first point on appeal that § 408.040 does not provide for automatic accrual of post-judgment
interest. Section 408.040 provides, in relevant part:
1. In all nontort actions, interest shall be allowed on all money due upon any judgment or order of any court from the date judgment is entered by the trial court until satisfaction be made by payment, accord or sale of property; all such judgments and orders for money upon contracts bearing more than nine percent interest shall bear the same interest borne by such contracts, and all other judgments and orders for money shall bear nine percent per annum until satisfaction made as...
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