Opinion ID: 1635023
Heading Depth: 1
Heading Rank: 5

Heading: is insurance agency entitled to prejudgment interest on its collection judgment?

Text: The trial court refused to grant insurance agency prejudgment interest on its undisputed collection claim. No reasons for this denial were set forth. SDCL 21-1-11 provides: Every person who is entitled to recover damages certain, or capable of being made certain by calculation, and the right to recover which is vested in him upon a particular day, is entitled also to recover interest thereon from that day, except during such time as the debtor is prevented by law, or by the act of the creditor, from paying the debt. Therefore, prejudgment interest should have been granted. See Dougherty v. Beckman, 347 N.W.2d 587 (S.D.1984); Beka v. Lithium Corp. of America, 77 S.D. 370, 92 N.W.2d 156 (1958). We see no justification for service charges over and above prejudgment interest or authorities in support thereof. The judgment of the trial court is reversed. We remand for an award of prejudgment interest on insurance agency's claim of $3,598.69 from and after the date of the earned premiums, which the trial court found to be April 27, 1981. The trial court is also to award insured prejudgment interest on $6,720.62 from and after the date upon which it was informed of the imposition of the coinsurance penalty.