Farmers Alliance Mut. Ins. Co. v. Bethel, 86-5201
| Decision Date | 08 April 1987 |
| Docket Number | No. 86-5201,86-5201 |
| Citation | 812 F.2d 412 |
| Parties | FARMERS ALLIANCE MUTUAL INSURANCE COMPANY, Appellee, v. Rodman J. BETHEL, Personal Representative of the Estates of Raydon A. Hurst and Patricia A. Hurst, Decedents; Peter A. Hurst, Kevin A. Hurst, Appellants, and American Family Mutual Insurance Company. |
| Court | U.S. Court of Appeals — Eighth Circuit |
Franklin J. Wallahan, Rapid City, S.D., for appellants.
George Beal, Rapid City, S.D., for appellee.
Before ROSS and JOHN R. GIBSON, Circuit Judges, and HANSON, * Senior District Judge.
In August 1979, Marvin Janis, who was covered under an automobile liability policy issued by appellee Farmers Alliance Mutual Insurance Company, fatally injured Raydon and Patricia Hurst and injured their children. Appellee never denied its liability under the insurance policy for Janis' negligence and, beginning in March 1981, repeatedly offered to pay the $30,000 policy limits for bodily injuries.
Appellants, the Hursts' personal representative and children, refused to accept appellee's offer of the policy limits because of their counsel's concern that a settlement releasing Janis could compromise an underinsured motorist claim they were pursuing against the Hursts' insurer, American Family Mutual Insurance Company (AFMIC). In addition, AFMIC, which had paid certain funeral and medical expenses for the Hursts, asserted a subrogation claim against the $30,000 held by appellee.
Appellants brought a wrongful death action against Janis which appellee was required under the policy to defend, although it continued its efforts to pay the policy limits. The wrongful death action resulted in a judgment against Janis on September 7, 1984 in the amount of $222,680.95. See Bethel v. Janis, 597 F.Supp. 56 (D.S.D.1984).
Appellee then brought an interpleader action, depositing the $30,000 policy limits with the clerk of court and naming the Hursts' personal representative, children and insurer as defendants. Appellants asserted a counterclaim for damages and pre- and post-judgment interest. The district court denied appellants' claims and entered summary judgment in favor of appellee relieving it of any liability beyond the $30,000 policy limits. From these orders, appellants appeal only the denial of post-judgment interest.
Appellants base their claim to post-judgment interest on a "supplementary payments" provision in the policy which states:
In addition to our limit of...
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