Cite as: 533 U. S. 1 (2001)
Opinion of the Court
Colorado argues that the lower rates should have been used because it is the State, rather than the individual farmers, that is maintaining the action and will receive any award of damages. But if, as we have already decided, see Part I, supra, it is permissible for the State to measure a portion of its damages by losses suffered by individual farmers, it necessarily follows that the courts are free to utilize whatever interest rate will most accurately measure those losses. The money in question in this portion of the damages award is revenue that would—but for Colorado's actions—have been earned by individual farmers. Thus, the Special Master correctly concluded that the economic consequences of Colorado's breach could best be remedied by an interest award that mirrors the cost of any additional borrowing the farmers may have been forced to undertake in order to compensate for lost revenue.
B
Although the Special Master rejected Colorado's submission that there is a categorical bar to the award of prejudgment interest on unliquidated claims, he concluded that such interest should not "be awarded according to [any] rigid theory of compensation for money withheld," but rather should respond to " 'considerations of fairness.' " Third Report 97 (quoting Jackson Cty., 308 U. S., at 352). Kansas argues that our decisions subsequent to Jackson County have effectively foreclosed the equities-balancing approach that the Special Master adopted. There is some merit to Kansas' position. See National Gypsum Co., 515 U. S., at 193 (affirming a decision of the Court of Appeals that had read our cases as "disapproving of a 'balancing of the equities' as a method of deciding whether to allow prejudgment interest").
However, despite the clear direction indicated by some of our earlier opinions, we cannot say that by 1949 our case law had developed sufficiently to put Colorado on notice
13
Page: Index Previous 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 NextLast modified: October 4, 2007