Today, the Tennessee Supreme Court in Haddon v. Vanlier, et al. reinstated a trial court’s denial of prejudgment interest in an action brought under Tennessee’s Uninsured Motorist Act (the “UM Act”).
The plaintiff, Ms. Cinda Haddon, sued an uninsured driver, Mr. Ladarius Vanlier, for personal injuries sustained in a car accident. After filing her lawsuit, Ms. Haddon served process on her uninsured motorist carrier, but could not serve process on Mr. Vanlier. Under the UM Act, Ms. Haddon proceeded with her lawsuit directly against her carrier.
After a jury trial, Ms. Haddon won damages for pain and suffering, loss of ability to enjoy life, permanent injury, and past medical expenses.
Ms. Haddon then sought prejudgment interest, which is additional damages awarded to compensate a party for the loss of use of money that should have been received earlier. The trial court denied Ms. Haddon’s claim for prejudgment interest, finding that prejudgment interest is not allowed in personal injury cases. The Court of Appeals disagreed, finding that Ms. Haddon had a contract claim, not one for personal injury.
The Tennessee Supreme Court reversed. The Court considered the “gravamen” of the action to determine that Ms. Haddon’s claim was one for personal injury, and not contract. Prejudgment interest is not allowed in personal injury claims but may be awarded at the court’s discretion in breach of contract claims. Because Ms. Haddon’s claim was for personal injury, she was not entitled to prejudgment interest under Tennessee law.
To read the Court’s opinion in Haddon v. Vanlier, et al., authored by Justice Mary L. Wagner, go to the opinions section of TNCourts.gov.