REGIONAL AIR, INC. v. Canal Ins. Co.
639 F.3d 1229
10th Cir.2011Background
- Regional Air and Canal Insurance dispute over appraisal award, trial verdict, and post-judgment remedies.
- Umpire awarded Regional Air $44,294.14 plus implied early storage costs; jury later awarded $12,000 for additional storage costs.
- District court held appraisal award unrevisable absent fraud/mistake; denied Regional Air’s request to amend judgment to include appraisal amount.
- District court later held Regional Air prevailing but awarded no fees/costs; allowed pre-verdict interest on $12,000 only; interest on appraisal not awarded; interest accrual from date of loss.
- Regional Air appeals denied relief and Canal cross-appeals; central issue is §3629 prevailing party and what constitutes judgment.
- Panel reverses in part: holds Regional Air is prevailing party, requires inclusion of appraisal award in judgment for §3629, awards interest on verdict, remands for fees and recalculation of interest.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether appraisal award must be included in the judgment for §3629 prevailing party analysis. | Regional Air argues appraisal should be in judgment to beat settlement offer. | Canal argues appraisal is separate and should not be counted toward judgment. | Yes; include appraisal in judgment for §3629. |
| Whether Regional Air is entitled to attorney's fees and costs under §3629. | Regional Air contends prevailing party entitlement to fees/costs. | Canal contends no entitlement or improper calculation. | Remand for district court to determine amount and work. |
| Whether interest is recoverable and from what date under §3629 for the prevailing party. | Regional Air seeks interest on appraisal and storage verdict from loss date. | Canal argues interest only on verdict amounts and from date loss payable. | Regional Air entitled to interest on verdict; remand to recalculate start dates from payable dates. |
| Whether the district court properly identified the prevailing party under §3629. | Regional Air contends total relief exceeds insurer offer, thus prevailing. | Canal would reframe relief by partitioning into components. | Regional Air is the prevailing party; all relief treated as single breach recovery. |
Key Cases Cited
- Stauth v. Nat'l Union Fire Ins. Co., 236 F.3d 1260 (10th Cir.2001) (proof of loss, notice suffices for §3629 trigger)
- Murray v. First Marine Ins. Co., 29 Fed.Appx. 503 (10th Cir.2002) (unpublished; proof of loss concept discussed)
- Oulds v. Principal Mut. Life Ins. Co., 6 F.3d 1431 (10th Cir.1993) (prevailing party determination under §3629 uses insurer's settlement offer)
- Carter Oil Co. v. McCasland, 190 F.2d 887 (10th Cir.1951) (Rule 54(c) relief must reflect what court determines parties are entitled to)
- Valley Forge Ins. Co. v. Health Care Mgmt., 616 F.3d 1086 (10th Cir.2010) (availability of prejudgment interest; respect for statutory language)
- McNickle v. Bankers Life & Casualty Co., 888 F.2d 678 (10th Cir.1989) (prejudgment interest under §3629; date when interest becomes payable)
- Shadoan v. Liberty Mut. Fire Ins. Co., 894 P.2d 1140 (Okla.Civ.App.1994) (fee/cost awards; prevailing party concerns in Oklahoma law)
- Cooper Indus., Inc. v. Aviall Svcs., Inc., 543 U.S. 157 (2004) (context on §3629 applicability to various judgments)