State Employees Credit Union v. Trevor Spencer, No. CL-2025-1018, 2026 WL 845519 (Ala. Civ. App. March 27, 2026). The court (Moore, J., and Edwards, Hanson, Fridy, and Bowden, JJ., concur) reverses the Lee County Circuit Court’s order granting a default judgment and remands with instructions, holding post-judgment interest in a breach of contract claim must be assessed using the rate indicated in the original contract.
On June 27, 2025, the Lee County Circuit Court entered default judgment in favor of Alabama State Employees Credit Union (“ASECU”) in a breach of contract action against Trevor Spencer. The Order included a provision relating to post-judgment interest in the amount of 7.5% annually or at the contract rate. Ms. *2. ASECU filed a motion to have the post-judgment interest award amended to 17.5%, reflecting the terms of the original contract with Spencer. The motion was denied by operation of law, and ASECU appealed. See Ala. R. Civ. P. 59.1.
On December 19, 2025, the trial court sua sponte “decided to treat the Rule 59 post-judgment motion as a motion for relief from the default judgment under Rule 60(b)(6), Ala. R. Civ. P.” and amended the judgment to read “Post-judgment interest shall accrue at the statutory rate as defined by § 8-8-10 of the Code of Alabama (1975).” Ms. *2. The trial court lacked jurisdiction to amend the order without such a request from a party.
On appeal, ASECU argued the trial court erred in entering a post-judgment interest percentage differing from the amount in the original contract. The court agrees, holding that “[b]y its plain language, § 8-8-10(a) provides that, in a breach-of-contract action, post-judgment interest accrues at the contract rate.” Ms. *4. The court reverses the judgment of 7.5% post-judgment interest and remands the case with instructions for the trial court to enter a judgment with the same interest terms indicated in the original contract.