Gemini Farms L.L.C. v. Smith-Kem Ellensburg, Inc.

—A seller is entitled to prejudgment interest on a liquidated account unless the liquidated claim is offsettable against an unliquidated claim for damages arising out of the same contract. Smith-Kem Ellensburg, Inc. sold Gemini Farms chemicals on open account. Some of the chemicals were bad and caused damage to Gemini’s crops. The question before us is whether Smith-Kem is entitled to prejudgment interest on its unpaid invoices ($22,562.56) following a $150,000 settlement for crop damage resulting from bad chemicals. We conclude on authority of Mall Tool Co. v. Far West Equipment Co.1 that it…