Terry Brough vs. Muriel Adcroft

This appeal involves a trial court's grant of prejudgment interest on arbitration awards. Subsequent to an automobile accident, the plaintiffs filed suit against their uninsured motorist policy carrier and another individual involved in the accident. The case proceeded to arbitration and the plaintiffs were awarded $140,000.00, which was paid by the insurance company. Upon obtaining new counsel, the plaintiffs learned of a relationship between the arbitrator and the insurance company and motioned the court to vacate the arbitration award. The trial court granted plaintiff's motion and resubmitted the case for a second arbitration. The plaintiffs were awarded $245,000.00 at the second arbitration and, soon after, motioned the court for prejudgment interest on the award. The trial court awarded the plaintiffs $71,042.72 of prejudgment interest. The insurance company appealed the decision to grant prejudgment interest and both parties have contested the method of calculation employed by the trial court. For the following reasons, we affirm in part, vacate in part, and remand this case for further proceedings consistent with this opinion.