State of California v. C.N.A. (Stringfellow) Prejudgment Interest Decision

In the decision just released in the State of California "Stringfellow" case, the Superior Court of the State of California awarded the State of California the amount of $13,914,082.09, the full amount of mandatory pre-judgment interest and, alternatively if that is reversed through the judicial process, $10,554,082.19 as the full amount of discretionary prejudgment interest, both at the legal rate of seven (7) percent interest.

This decision follows the State of California's victory in a jury trial rejecting all defenses asserted by the insurance industry and two victories for the State of California in the California Supreme Court in subsequent appeals taken by the insurance industry.

"Some courts have recognized that in insurance coverage disputes, an award of prejudgment interest may be even more appropriate than in other breach of contract cases....This Court cannot disagree. Here if there was some uncertainty about the total amount of the State's damages, there is something 'not right' about delaying an insured policyholder's collection of money owed under its policies because various insurers cannot agree among themselves about how to allocate a loss that must be covered by one policy or another....The fact remains the State has been deprived of the use of its money for a lengthy period of time and that the insurers essentially have had a loan from the State...for nearly 13 years. Imposing interest on the loan at the legal rate of seven percent is not unreasonable under the facts of this case."

The State of California is represented by Attorney General Kamala Harris,  Deputy Attorney Generals Darryl Doke and Peter Meshot, Robert Horkovich of Anderson Kill, P.C., Roger Simpson and Daniel Schultz.

  Robert M. Horkovich, Managing Shareholder, Anderson Kill

About Anderson Kill

Anderson Kill practices law in the areas of Insurance Recovery, Commercial Litigation, Environmental Law, Estate, Trusts and Tax Services, Corporate and Securities, Antitrust, Banking and Lending, Bankruptcy and Restructuring, Real Estate and Construction, Foreign Investment Recovery, Public Law, Government Affairs, Employment and Labor Law, Captive Insurance, Intellectual Property, Corporate Tax, Hospitality, and Health Reform. Recognized nationwide by Chambers USA for Client Service and Commercial Awareness, and best-known for its work in insurance recovery, the firm represents policyholders only in insurance coverage disputes - with no ties to insurance companies and has no conflicts of interest. Clients include Fortune 1000 companies, small and medium-sized businesses, governmental entities, and nonprofits as well as personal estates. Based in New York City, the firm also has offices in Ventura, CA, Dallas, TX, Stamford, CT, Washington, DC, Newark, NJ and Philadelphia, PA.

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