Fletcher Hill, Inc. v. Crosbie, 178 Vt. 77 (2005)

Citation: Fletcher Hill, Inc. v. Crosbie, 178 Vt. 77 (2005)
Parent Document: Fletcher Hill, Inc. v. Crosbie, 178 Vt. 77 (2005)
Jurisdiction: Vermont (state)
Effective Date: 2005-01-14
Original Source: https://www.courtlistener.com/opinion/8209845/fletcher-hill-inc-v-crosbie/ ↗

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¶ 19. The court did not abuse its discretion when it declined to apply the interest rate contained in the contract’s “late fee” provision because, as explained above, the record indicated that Crosbie had a good faith basis for withholding the outstanding balance. After concluding it was not bound by the contractual interest rate, the court correctly applied the statutory 12% interest rate found throughout 9 V.S.A. §§ 4001-4009. For example, pursuant to 9 V.S.A. § 4002(d), payments to the contractor delayed beyond the due date will accrue interest, beginning on the twenty-first day, at a rate equal to that established by 12 V.S.A. § 2903(b). Section 2903(b) governs interest on judgment liens and sets the rate at 12% per annum. See also 9 V.S.A. § 4003(d) (setting interest rate for late payments owed by contractor to subcontractor at the 12% annual rate established by 12 V.S.A. § 2903(b)); 9 V.S.A. § 4005 (pegging interest rate for overdue retainage *85to the interest provisions of §§ 4002-4003). On this basis, we hold that the trial court’s imposition of a 12% interest rate was not error.

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