Firm Wins Key Appellate Decision on When Prejudgment Interest Accrues for Payment of an Appraisal Award

Steven G. Schwartz, Esq.
July 15, 2009

Insurers are increasingly presented with a demand by plaintiff attorneys to pay prejudgment interest on a loss often in the aftemath of an appraisal award where the insured's counsel demands interest dating back to the original date of loss years before even where the insurer has fully cooperated in the appraisal process.  In a major holding in favor of the insurer, as argued by the firm, in the case of Sunshine State Insurance Company v. Davide, 15 So.3d 749 (Fla. 3d DCA 2009), the Third District Court of Appeals reversed the lower court and rejected the imposition of prejudgment interest back to the date of loss where the insurer had not declined coverage and had timely participated in an appraisal.  The Court reasoned that under such circumstances the obligation to pay any prejudgment interest would only accrue from a date more than 60 days beyond the rendition of the appraisal award and only where the award itself  had not then been timely paid.  See a full copy of the decision in Sunshine State v. Davide.

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