Ralston Purina Company v. Parsons Feed & Farm Supply, Inc., Thurman Parsons, Inez Parsons, Glenn Parsons, and Alma Parsons, (Two Cases)

BLACKMUN, Circuit Judge.

We are concerned here with the elusive question of the proper interest to be allowed on an unliquidated counterclaim reduced to judgment, then reversed, and then reduced to an identical judgment at a date subsequent to the entry of judgment on the plaintiff’s liquidated claim. The parties are agreed that, to the extent state law is pertinent, Arkansas law applies.

The facts are not in dispute:

1. In February 1964 Ralston Purina Company instituted a diversity action against Parsons Feed & Farm Supply, Inc., and four individual guarantors to recover $116,471.60, part of…