Summary
In O'Keeffe v. City of New York (176 N.Y. 297) the Court of Appeals was called upon, in a contract action, to determine the date from which interest should run. It was argued for the plaintiff there that interest should be allowed from the date of the maturity of the claim, i.e., the date of completion of the work, under the general and well-understood principle that interest ordinarily runs from the date when the principal sum becomes due and payable.
Summary of this case from Rapid Transit Subway Const. Co. v. City of N.YOpinion
Argued October 21, 1903
Decided October 30, 1903
William A. Barber and Henry D. Hotchkiss for appellant. George L. Rives, Corporation Counsel ( Theodore Connoly and Chase Mellen of counsel), for respondent.
The only question brought up for review is as to the time that interest should be allowed upon the plaintiff's claim. It would be exceedingly difficult for the comptroller of a large city to look up claimants or their heirs or assigns and tender payment as their claims matured and became due. If interest at six per cent is chargeable from the date of the maturity of claims many persons might refrain from presenting them during the period permitted by the Statute of Limitations. The allowing of interest from such maturity would afford a safe and profitable investment which might become very attractive to many and induce them to buy up claims for the purpose of holding them for the interest. This would impose a burden upon the city that it ought not to bear.
The better and more just way is to follow the rule laid down in Taylor v. Mayor, etc., of N.Y. ( 67 N.Y. 87, 94) and Sweeny v. City of New York ( 173 N.Y. 414) and award interest on claims only after the demand of payment has been made.
The judgment appealed from should be affirmed, with costs.
PARKER, Ch. J., GRAY, HAIGHT, MARTIN, VANN, CULLEN and WERNER, JJ., concur.
Judgment affirmed.