by Kathleen Hamilton

After a more than twelve-year court battle and three separate appeals, the Missouri Court of Appeals-Eastern District has ruled that the plain language of Missouri Statute Section 34.057 (the Prompt Pay Act) calls for a penalty of simple interest computed solely on the principal. (The Prompt Pay Act allows courts to impose late payment interest of 1.5% per month on top of payments found to have been withheld from a contractor in bad faith.) The Court of Appeals held that Missouri’s Prompt Pay Act did not provide for compound interest and that the trial court erred in…

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