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Dziadek v. Charter Oak Fire Insurance Company
(8th Cir., Filed Feb. 21, 2017): Arguing that above-market prejudgment interest should not be included in the denominator when calculating the ratio of punitive to compensatory damages. Above-market prejudgment interest overstates the actual harm suffered by the plaintiff and already serves a punitive function. If the Court concludes that some amount of prejudgment interest should be included in the denominator of the ratio, it should use a market rate for determining the amount and add the balance of the prejudgment interest- the effect of which is entirely punitive-to the numerator.
On August 15, 2017, the court ruled against ATRA’s position and affirmed the award of punitive damages.
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