Plaintiffs George and Georgia Diamond (“Diamonds”) appeal a bankruptcy court order denying their request for prejudgment interest on their nondischargeable claim against debtor, Scott Bakay (“Debtor”).
The issue on appeal is whether the bankruptcy court erred by denying the Diamonds’ second post-judgment motion for prejudgment interest on their nondischargeable claim. “The decision whether or not to allow prejudgment interest rests within the sound discretion of the trial court. Accordingly, the standard of review on appeal is whether the trial court abused its discretion in awarding or in declining to award-prejudgment interest.
In this case, the bankruptcy court denied prejudgment interest based upon an undue delay of prosecution.17 The Diamonds argue that this decision constitutes an abuse of discretion, asserting that any delay in instituting an action should be attributed to the Debtor because his continued promises to pay lulled them into believing there was no need to initiate legal proceedings.
Affirmed.