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State ex rel. State Insurance Fund v. Accord Human Resources12/16/2003
__ P.3d __
This controversy presents two questions. The first, whether the State Insurance Fund (Fund) is entitled to an attorney's fee, must be answered in the negative due to our recent opinion in State of Oklahoma, ex rel. State Insurance Fund v. Great Plains Center, Inc., 2003 OK 79, 78 P.3d 83. The second is whether the Fund is entitled to prejudgment interest. We conclude that it is so entitled, and also affirm the trial court's ruling on that issue.
The controversy involves an action brought by the State Insurance Fund (Fund) against Defendants (Accord Human Resources, Inc.) to recover unpaid workers' compensation premiums. A continuing audit and/or negotiations resulted in the parties agreeing that Accord owed the Fund a net amount of $43,757.60, an amount considerably less than that originally demanded by the Fund. The parties reached their agreement on January 24, 2002, but payment was not tendered until May 13, 2002. The Fund refused to accept the payment because it did not include attorney's fees, interest, and court costs.
The Fund sought summary judgment on the agreed amount of $43,757.60, plus additional amounts for attorney's fees, interest, and costs. The Fund argued that the action was on an open account and that attorney's fees were proper. The Fund also sought prejudgment interest at a rate of six percent commencing on October 19, 1994. The Fund claimed as the prevailing party it was entitled to costs.
Accord sought summary judgment. Accord denied that the action was suit on an open account, and argued that the amount it agreed to pay was the result of negotiation and compromise, and that the Fund was not a prevailing party for the purpose of interest and costs.
The District Court granted judgment against Accord in the amount agreed by the parties, $43,757.60. The Court rejected the Fund's argument that the action was an open account, and denied the motion for attorney's fees. The Court granted the Fund's motion for prejudgment interest, but limited it to commencing on January 24, 2002 and ending on May 13, 2002 for a total amount of $783.71. Costs against Accord was granted in the amount of $187.00.
The Fund appealed and the Court of Civil Appeals affirmed the District Court. The appellate court concluded that the action was on an account stated, but that an attorney's fee was not proper because the account stated did not involve goods or services. No party urged in the trial court, or on appeal, that the underlying obligation is an account stated. The Fund argues on certiorari that if the underlying obligation is an account stated as determined by the Court of Civil Appeals, or an open account as the Fund argued, then it is entitled to attorney's fees pursuant to 12 O.S. ยง 936. The Fund also argues on certiorari that it was entitled to interest commencing on a date different from that used by the trial court and appellate court.
I. The Attorney's Fees Question
The Fund's action was brought to recover an amount for unpaid workers' compensation insurance premiums. In State of Oklahoma, ex rel. State Insurance Fund v. Great Plains Center, Inc., 2003 OK 79, 78 P.3d 83, we said that an action for unpaid insurance premiums was not an action on either an account stated or an open account. We said that: "We decline to adopt the concept that contractual obligations on an insurance policy are merged into, and superceded by, a subsequent statement of an amount due sent by one party to another based upon obligations becoming due under provisions of an insurance policy, and thus creating an 'account' to render or state." Id. at 15, 78 P.3d at 89. The action for unpaid insurance premi
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