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RSJ Obtains Pre-Award Interest on Insurance Appraisal Award

RSJ member Anthony T. Smith has again successfully recovered pre-award interest on an insurance appraisal award for one of the firm's townhome association clients.

The case, Southcross Village Condominium Association v. American Family Mutual Insurance Company, Dakota County District Court Case No. 19HA-CV-13-4822, involved storm damage to a townhome association's roofs. American Family undervalued both the amount of damage to the property and the cost to repair the damage.  The townhome association disagreed with American Family's determination of the amount of damage and the cost of repair.  Accordingly, it demanded an insurance appraisal under its property insurance policy.

The insurance appraisal panel agreed with the townhome association and awarded it over $1 million to repair the damage.  

Smith then asked the Dakota County District Court to award the townhome association interest on the appraisal award from the date the damage to the property occurred in April 2010 through the date of the award in January 2012. Smith argued that the townhome association was entitled to interest at the rate of 10% interest per year on the appraisal award under Minnesota's pre-award interest statute, Minn. Stat. 549.09. American Family opposed the motion, and argued that the townhome association was not entitled to interest.

The court rejected all of the insurance company's arguments and granted Smith's motion for pre-award interest.

This case reaffirms the rights of property insurance policy holders to recover interest from an insurance claim that undervalues a property insurance claim.

Read the Court's Order here:

20140312 Order Granting Pre-Award Interest.pdf

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