Opinion

SiOnyx, LLC v. Hamamatsu Photonics K.K.

Court
District Court, D. Massachusetts
Filed
Jul 25, 2019
Cited by
0 cases
Authority
More cited than 22.7%

The opinion

UNITED STATES DISTRICT COURT

DISTRICT OF MASSACHUSETTS

_______________________________________

)

SIONYX, LLC, and )

PRESIDENT AND FELLOWS OF )

HARVARD COLLEGE, )

) Civil Case No.

Plaintiffs, ) 15-13488-FDS

)

v. )

)

HAMAMATSU PHOTONICS K.K., )

HAMAMATSU CORP., OCEAN OPTICS, )

INC., and DOES 1-10, )

)

Defendants. )

_______________________________________)

ORDER ON PLAINTIFFS’ MOTION FOR PRE-JUDGMENT INTEREST

AND POST-JUDGMENT INTEREST

SAYLOR, J.

Plaintiffs have moved post-trial for an award of both pre- and post-judgment interest.1

First, plaintiffs seek $1,091,481 as prejudgment interest on the damages awarded for

breach of contract.

Mass. Gen Laws ch. 231, § 6C provides as follows: “In all actions based on contractual

obligations, upon a verdict, finding or order for judgment for pecuniary damages, interest shall

be added by the clerk of the court to the amount of damages, at the contract rate, if established,

or at the rate of twelve per cent per annum from the date of the breach or demand.”

1 In the same motion (Docket No. 780), plaintiffs seek additional relief in the form of a post-verdict

accounting. The resolution of that issue will be included in the Court’s order on plaintiffs’ motion for equitable

relief.

The application of § 6C leads to a straightforward calculation here. The jury awarded

plaintiffs damages of $796,469 for breach of contract; the jury found that the contract was

breached on February 1, 2008; and the non-disclosure agreement did not contain a “contract

rate.” Accordingly, therefore, applying a rate of 12% per annum from February 1, 2008, to the

jury's damages award results in a total of $1,091,481 in prejudgment interest.2

Second, plaintiffs seek $660,536 as prejudgment interest on the damages awarded for

unjust enrichment. The parties’ main dispute centers on whether § 6C or § 6H of Chapter 231

applies to the unjust-enrichment claim. Plaintiffs rely on Bushkin Associates, Inc. v. Raytheon

Co., 906 F.2d 11 (1st. Cir. 1990), in which the First Circuit held that actions for unjust

enrichment, or quantum meruit, are “encompassed” by ch. 231, § 6H. Id. at 18. That case does

not answer the precise question here, however, because, as the Bushkin court noted, § 6H was not

“enacted” until “after the . . . commencement” of that case. Id. at 14, n.3. Defendants, by

contrast, rely on Mill Pond Associates, Inc. v. E & B Giftware, Inc., 751 F. Supp. 299 (D. Mass.

1990). Defendants point to language in Mill Pond that “Massachusetts courts have held that

prejudgment interest should not be applied to cases in which the court calculates the plaintiff's

damages by measuring the defendant's wrongful profits.” Id. at 300. Defendants appear to

contend that because the jury's award for unjust enrichment in this case was calculated by

measuring HPK's wrongful profits, prejudgment interest should not apply. Id.

Arguably, Bushkin and Mill Pond point in different directions. Nonetheless, and for two

reasons, the Court will apply § 6H. First, although Mill Pond did not include any claims for

2 Defendants contend that the prejudgment interest award should be limited under the Supreme Judicial

Court's decision in Bank v. Thermo Elemental Inc., 451 Mass. 638 (2008). That case allows for the reduction of an

interest award when "expenses incurred as a result of a contract breach are not paid by a plaintiff until after the

breach has occurred." Id. at 662-63. In this case, however, the jury's award for breach of contract damages did not

include any "expenses" that plaintiffs have attempted to recover. Thermo Elemental is thus inapplicable.

unjust enrichment, and thus did not even attempt to answer the question at issue here. Second,

nothing in Mill Pond calls directly into question the First Circuit's clear holding in Bushkin that

unjust enrichment claims are encompassed by § 6H. Accordingly, applying § 6H, and applying a

date of breach of January 10, 2010, prejudgment interest will be ordered in the amount of

$660,536.

Third, plaintiffs seek post-judgment interest under 28 U.S.C. § 1961 on all damages

awarded. Section 1961 provides that “interest shall be allowed on any money judgment in a civil

case recovered in a district court” and that “such interest shall be calculated from the date of the

entry of the judgment, at a rate equal to the weekly average 1-year constant maturity Treasury

yield, as published by the Board of Governors of the Federal Reserve System, for the calendar

week preceding the date of the judgment.” Defendants do not oppose such an order. Defendants

will therefore be ordered to pay post-judgment interest at the statutory rate.

Accordingly, and for the foregoing reasons, plaintiffs’ motion for pre-judgment and post-

judgment interest is GRANTED in part, as follows:

1. The judgment will include a provision requiring HPK to pay $1,091,481 in pre-

judgment interest;

2. The judgment will include a provision requiring HC to pay $660,536 in pre-

judgment interest; and

3. The judgment will include a provision requiring plaintiffs to pay post-judgment

interest at the rate established by 28 U.S.C. § 1961.

So Ordered.

/s/ F. Dennis Saylor IV

F. Dennis Saylor IV

Dated: July 25, 2019 United States District Judge

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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