Keele

A judgment debtor seeks to partially vacate a judgment entered pursuant to stipulation on the ground that it is void because it provides for an interest rate greater than the rate set by the Constitution. The first question before us is whether a stipulated judgment may carry a 15 percent interest rate. We find that it may not. We must also determine whether the stipulated judgment in this case was enforceable and, therefore, subject to the constitutional interest rate at the time it was entered. We find that the judgment was qualified when first entered and not subject to the constitutional rate. At the time the judgment became enforceable the constitutional rate became applicable. We therefore affirm the trial court ruling which denied the partial vacation of the judgment, but remand for further proceedings on the writ of execution, which presently reflects the 15 percent interest rate.

Facts

During 1979 appellant Michael L. Keele (Keele), doing business as Michael L. Keele Enterprises, and respondent John Siebel Associates (Seibel) entered into three contracts by which Siebel would perform architectural services. Each agreement had a provision for arbitration of…