Racusin v. American Wagering, Inc. (In Re American Wagering, Inc.)

MEMORANDUM

Michael Racusin appeals the Bankruptcy Appellate Panel’s decision that he is not entitled to interest under his Settlement Agreement with American Wagering, Inc. (“AWI”) from the date AWI interpleaded stock until the date the Ninth Circuit reversed the BAP’s decision that Racusin’s claim was subordinated&emdash;the so called “gap period.” We reverse and remand.

The plain language of the Settlement Agreement contemplates interest during the gap period. Ringle v. Bruton, 120 Nev. 82 , 86 P.3d 1032, 1039 (2004) (explaining that the plain language of an unambiguous contract controls). The parties agree that § 111(7) of the Settlement requires AWI to make cash payments to Racusin. That section also requires AWI to pay eight percent interest per year on the unpaid balance with an “initial payment ... on the Effective Date of the Restated Amended Plan,” March 11, 2005. No terms in the Settlement specifically exclude the gap period from AWI’s obligation to pay eight percent interest on the unpaid balance. The plain language of the Settlement therefore provides for gap period interest. See Royal Indem. Co. v. Special Serv. Supply Co., 82 Nev. 148 , 413 P.2d 500, 502 (1966)…