First American Title Insurance Co. v. 273 Water Street LLC
A court can award postjudgment interest in civil actions of up to 10 percent. Allegedly, the defendant developers purchased property in Old Saybrook, and the plaintiff issued a title insurance policy that insured "against, among other things, loss or damage sustained or incurred by reason of any defect in or lien or encumbrance on the title to the insured property." The property's legal description included land over which the Borough of Fenwick claimed ownership. The insureds filed a claim. Allegedly, the plaintiff insurance company offered the insureds $17,000. The defendant insureds returned the check, and the insurance company requested a declaratory judgment. The defendant insureds filed an answer and counterclaim, alleging breach of contract, and argued that the insurance company sought "to avoid its true financial and other obligations under the . . . Policy." A jury found that the value of the loss was $2.2 million. The defendants moved for post-judgment interest and argued that the plaintiff inexcusably delayed the payment of a fair debt. The plaintiff insurance company objected that the suit included novel issues of first impression, and it prevailed on a claim that alleged breach of the implied covenant of good faith and fair dealing. The court awarded defendants post-judgment interest of 5 percent, pursuant to Connecticut General Statutes §37-3a.