67 N.E.3d 1232
Mass.2017Background
- Odin Anderson was severely injured when struck by a bus; jury awarded him $2,961,000 (later reduced for comparative negligence) and awards to his wife and daughter; defendants (insurers/claims reps) adjusted and litigated rather than settle.
- Plaintiffs sued insurers under G. L. c. 176D § 3 and G. L. c. 93A § 9(3) alleging willful, egregious unfair claim-settlement practices; that action was stayed pending the underlying tort litigation.
- After appeals, defendants paid the underlying judgment plus statutorily mandated postjudgment interest accrued before payment (total to Odin included about $1.28M in postjudgment interest).
- On a later jury-waived trial, the Superior Court found willful violations and awarded multiple (punitive) damages under G. L. c. 93A § 9(3), using as the base amount the underlying judgment combined with accrued postjudgment interest; judge ultimately trebled the amount.
- Appeals Court affirmed; Supreme Judicial Court granted further review limited to whether postjudgment interest is part of the “amount of the judgment” to be multiplied under G. L. c. 93A § 9(3).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether postjudgment interest is included in the “amount of the judgment” that is doubled/trebled under G. L. c. 93A § 9(3) | Postjudgment interest should be included so trebling fully punishes/deters bad-faith appeals and preserves verdict value | Postjudgment interest is separate from the judgment’s principal and should not be multiplied | Postjudgment interest is not part of the judgment amount for purposes of G. L. c. 93A § 9(3); only the judgment principal (including prejudgment interest where added by statute) is multiplied |
Key Cases Cited
- Rhodes v. AIG Domestic Claims, Inc., 461 Mass. 486 (discussing interplay of c. 176D and c. 93A and multiple damages)
- R.W. Granger & Sons v. J & S Insulation, Inc., 435 Mass. 66 (prejudgment interest forms part of underlying judgment for purposes of multiplied damages)
- Shawmut Community Bank, N.A. v. Zagami, 419 Mass. 220 (definition and scope of a judicial "judgment")
- Kaiser Aluminum & Chem. Corp. v. Bonjorno, 494 U.S. 827 (postjudgment interest compensates for delay between judgment and payment)