PREJUDGMENT INTEREST AVAILABLE ONLY FOR COMPENSATORY DAMAGES, BUT NOT FOR PUNITIVE OR TREBLED DAMAGES
On March 7, 2011, we posted on an extensive decision of a District Court in a dispute over a reinsurance relationship which had not been documented in a written agreement. The court has now assessed prejudgment interest, attorneys’ fees and costs. The court held that prejudgment interest must be computed on actual damages, and may not be based upon doubled or trebled amounts, and that prejudgment interest may not be awarded for punitive damages. Trenwick America Reinsurance Corp. v. IRC, Inc., Case No. 07-12160 (USDC D. Mass. May 23, 2011).
This post written by Rollie Goss.
