Supreme Court quashes judgment for awarding compound interest contrary to Civil Code and procedural law.
Legislator summary
AI generatedThe Supreme Court granted the cassation appeal against the lower court's award of interest calculated using an expert opinion that violated the Civil Code. The plaintiff argued for compensation for underpaid judicial salaries, while the defendant contended that interest should only accrue from the date of the lawsuit, not from the date of the expert's calculation. The court ruled that the expert's method of compounding interest and summing arrears incorrectly applied the law, thereby violating procedural rules and necessitating a retrial.
Legislator headnote
AI generatedArt. 481 § 1 KC; Art. 482 § 1 KC; Art. 224 § 1 KPC: Interest must be calculated on specific monthly amounts from the date of default until payment, prohibiting the arbitrary summation of arrears and compound interest without agreement.