Tag Archives: Prejudgment Interest

Insured’s Prejudgment Interest Award Runs From Date Appraisal Was Demanded

Dewey Hill owned eight townhome buildings in Minnesota insured by Auto-Owners.1 On August 16, 2013, a hail and windstorm damaged the buildings. Three days later, Dewey Hill notified Auto-Owners of the loss and submitted written property loss notices ten days later. Auto-Owners investigated the claim and approximately nine months later issued its first payment to … Continue Reading

When Does Pre-Award Interest Begin to Run on an Appraisal Award?

I recently had a public adjuster reach out to me asking me how pre-award interest on an appraisal award was calculated. Coincidently, in Creekview of Hugo Association v. Owners Insurance Company,1 the United States District Court for the District of Minnesota recently addressed the application of pre-award or pre-judgment interest under Minnesota Law.… Continue Reading

Eighth Circuit Agrees: Pre-Award Interest on Appraisal Award is Appropriate

I recently wrote about the case of Poehler v. Cincinnait Insurance Company,1 in which the Minnesota Supreme Court recently held that Minnesota Statute section 549.09 provides for pre-interest on insurance appraisal awards. Following this decision, the Eighth Circuit Court of Appeals in Housing and Redevelopment Authority of Redwood Falls v. Housing Authority Property Insurance,2 similarly … Continue Reading

Prejudgment Interest and Playing the Float

The True Value of Insurers’ Float, by Tom Mielenhausen, offers an excellent view of how insurers profit from delay and denial. Mielenhausen noted that: [I]nsurance companies borrow money from policyholders interest free. Insurers enjoy the use of free money and get paid for holding it. The true value of a property/casualty insurer’s float, therefore, is … Continue Reading

Another Recent Appellate Court Ruling Regarding Entitlement To Prejudgment Interest Following An Appraisal Award

On May 11, 2011, the Florida Fourth District Court of Appeal released an opinion addressing a policyholder’s claim for prejudgment interest following an appraisal award. Green v. Citizens Property Insurance Corp., 2011 WL 1775731 (Fla. 4th DCA 2011). This blog continues the discussion from my March 2011 post, Recent Third District Court of Appeal Ruling … Continue Reading

Prejudgment Interest Following a Wrongful Denial

Last week, a very able insurance defense attorney from Florida’s panhandle, Robert Palmer, brought Citizens Prop. Ins. Corp. v. Mallett, 7 So3d 552 (Fla. 3d DCA 2009), which involved prejudgment interest, to my attention. This case is not favorable to policyholders, especially in Northern Florida, and challenges a longstanding case, Independent Fire Ins. Co. v. Lugassy, which provides … Continue Reading

Recent Third District Court Of Appeal Ruling Regarding Entitlement To Prejudgment Interest Following An Appraisal Award In Florida

Florida’s Third District Court of Appeal just released an opinion related to a policyholder’s claim for prejudgment interest after an appraisal award. In Alberto Jugo v. American Security Insurance Company, No. 3D09-3246 (Fla. 3d DCA 2011), the Third District held that a policyholder was not entitled to prejudgment interest on the supplemental amount of the … Continue Reading

Florida Insurers Have A Strong Financial Incentive To Delay, Rather Than Deny, Claims

(Note: This Guest Blog is by Ruck DeMinico, Knowledge Manager with Merlin Law Group).  The recent case of North Pointe Insurance Company v. Tomas, No. 3D08-2245, 2009 Fla. App. LEXIS 12505 (Fla. 3d DCA August 26, 2009), illustrates why many insurers who wrongfully fail to pay a claim choose to unnecessarily delay payment rather than … Continue Reading

Two Recent Florida Cases on Prejudgment Interest

In the last week, two Florida cases have been released which discuss prejudgment interest. In Sunshine State Insurance Co. v. Davide, 34 Fla. L. Weekly D1422a (Fla. 3d DCA 2009), Florida’s Third District Court of Appeal held that when an insurer erroneously withholds a portion of a payment due, the insured is entitled to prejudgment … Continue Reading