11 N.W.3d 832
Minn. Ct. App.2024Background
- Lee Michael Scheurer was injured in a car accident caused by Ann Maland in January 2017.
- Scheurer sent a written notice of claim to Maland’s insurer in September 2017 and made an offer to settle in July 2020, but no settlement was reached.
- Scheurer initiated a lawsuit in November 2020, more than two years after the notice of claim.
- A jury awarded Scheurer $292,340.03 in compensatory damages, later reduced by collateral source payments and interest calculations by the district court.
- The district court calculated preverdict interest after reducing the verdict by collateral sources and determined interest only ran from suit filing, not from the notice of claim, due to the two-year requirement.
- Scheurer appealed both the method of calculating preverdict interest and the accrual date.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Preverdict interest calculated before or after collateral sources? | Calculate interest before any reductions | Reduce verdict, then calculate interest | Interest must be calculated before collateral source reductions. |
| Does preverdict interest accrue from notice of claim if action filed >2 yrs? | Interest accrues from notice if offer made | Accrues only if action within 2 years | Interest accrues from notice only if action commenced within 2 years of the notice. |
Key Cases Cited
- Lienhard v. State, 431 N.W.2d 861 (Minn. 1988) (preverdict interest is an element of damages awarded for full compensation)
- Getz v. Peace, 934 N.W.2d 347 (Minn. 2019) (collateral-source benefits do not generally affect tort damages)
- Poehler v. Cincinnati Ins. Co., 899 N.W.2d 135 (Minn. 2017) (preaward interest applies to all pecuniary damages unless excluded by statute)
- Imlay v. City of Lake Crystal, 453 N.W.2d 326 (Minn. 1990) (collateral source reductions should not deprive a plaintiff of full compensation)