SJJ attorneys Tim Johnson and Alex Jadin won another important case for Minnesota policyholders today at the Court of Appeals in K & R Landholdings v. Auto-Owners Insurance.

Just last year, SJJ won Poehler v. Cincinnati at the Minnesota Supreme Court which held that Minnesota policyholders are entitled to interest on an insurance appraisal award when an insurance company undervalues their claim.   In the K & R case, the insurance company denied payment of interest based upon the policy's two-year statute of limitations for coverage.  The district court agreed and denied the policyholder its right to collect pre-award interest.

The policyholder hired SJJ to handle the appeal.  SJJ argued that the policy's two-year limitation period does not apply to statutory interest claims.  The Court of Appeals, in a unanimous decision, agreed with SJJ and overturned the district court's decision.  The Court of Appeals found that a "claim for pre-award interest under Minn. Stat. § 549.09 on an appraisal award is not time-barred under insurance policy limitation terms when the policy does not address pre-award interest."

What does this mean for Minnesota policyholders?  It means that if a policyholder challenged an insurance company's undervaluation of a claim and prevailed in appraisal, the policyholder can still recover interest even outside of the policy's statute of limitation.  If your insurance company undervalued your claim and you prevailed at appraisal in the last 6 years, call us today for a free consultation!

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