Inman v. State Farm Mut. Auto. Ins. Co.
Annotate this CasePlaintiff's vehicle was rear-ended by Driver's vehicle. Plaintiff sued Driver and settled with his insurer for $50,000, the maximum of Driver's automobile liability policy. Plaintiff then sought an additional $50,000 under her underinsured motorist (UIM) policy with State Farm. State Farm declined to award the requested amount. Following trial, the jury returned a verdict in favor of Plaintiff in the amount of $50,000. The trial court declined Plaintiff's motion for prejudgment interest pursuant to the Tort Prejudgment Interest Statute (TPIS). Plaintiff appealed the trial court's denial of her motion for prejudgment interest. The Supreme Court affirmed, holding (1) the TPIS does apply to UIM coverage disputes; (2) because prejudgment interest is a collateral litigation expense, it can be awarded in excess of an insured's UIM policy limits; but (3) Plaintiff was not entitled to prejudgment interest because the trial court acted within its discretion when it denied her request for prejudgment interest.
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