Opinion ID: 2182267
Heading Depth: 1
Heading Rank: 3

Heading: Prefiling Interest.

Text: Generally, interest runs from the time money becomes due and payable and, in the case of unliquidated claims, from the date they become liquidated. Woods v. Schmidt, 439 N.W.2d 855, 870 (Iowa 1989). One recognized exception to this rule is where the entire damage for which recovery is demanded was complete at a definite time before the action was begun. Midwest Management Corp. v. Stevens, 353 N.W.2d 76, 83 (Iowa 1984). The trial court allowed recovery of interest at five percent from the date of the accident. Veach urges this was proper because under the terms of the policy he was entitled to money due by express contract or money to become due by contract. Iowa Code § 535.2(1)(a)(g). While this action may be founded on contract, the measure of recovery is for unpaid damages for personal injury resulting from a motor vehicle accident where the amount the insured person is legally entitled to recover against the owner of the underinsured motor vehicle exceeds such owner's bodily injury policy limit. There was no pleading or proof that the damages were completed at a definite time before the action was commenced. The amount of the damages recoverable under the policy did not become fixed until after the action was commenced. See Lemrick v. Grinnell Mut. Reinsurance Co., 263 N.W.2d 714, 720 (Iowa 1978). The interest allowed is thus limited to the statutory ten percent allowed on the amount of the judgment accruing from the date of the commencement of the action. Iowa Code § 535.3. We vacate the award of prefiling interest and remand to the district court for entry of judgment as provided in this opinion and for interest from the date of the commencement of the action. DISTRICT COURT JUDGMENT AFFIRMED IN PART, REVERSED IN PART, AND REMANDED.