When Debtor Defaults on Note with Stated Annual Interest Rate, Is Creditor Entitled to Compound Interest?

Marcia A. Mayer et al. v. Mario Medancic et al., Case nos. 2008-2363 and 2009-0170

11th District Court of Appeals (Geauga County)

ISSUE: When a debtor defaults on a written instrument which promises the payment of interest at a stated annual percentage rate, in the absence of a statutory or contractual provision for compounding of unpaid interest, is the creditor limited to recovery of simple