By: Libi Uremovic, August 27, 2014 | Original Article at Patch.com
Letter From WRCOG Lawyer Confirms Interest Rate Will Be 7% and Debunks City of Beaumont Lies.
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In a letter to Rick Bishop, Executive Director of the Western Riverside Council of Governments (WRCOG), the Law Firm of Best Best & Krieger confirms that the Interest Rate on the recent lawsuit against the City of Beaumont will be 7%. The Law Firm quotes Article XV, Section 1 of the California Constitution, which established the legal rate on jundgments as seven (7) percent. The Law Firm writes: “At seven percent, the total pre-judgments interest is approximately $14 Million. Post-judgment interest will continue to accrue at seven percent from May 23, 2014 until the City pays the Judgment.”
The Law Firm notes that under the Constitution the legislature can etablish interest rates up to 10%. However, several cases have held that the interest rate for judgment against a public entities is 7%. The 7% is only the interest rate on the lawsuit itself. It does not cover legal fees which the City will also have to pay with interest.
The Law Firm further writes: “We note that the City has publicly represented that the interest rate on the judgment will accure at the much lower “weekly average one year constant maturity United States Treasury yield” under Civil Code Section 3287(c). THIS IS UNTRUE”.
Anyone dealing with the City of Beaumont gets used to using the words “This is Untrue.”