Crane

Appellant Steven E. Crane is the plaintiff in a pending personal injury action. In this declaratory relief action, he appeals from the entry of summary judgment in favor of respondent State Farm Mutual Automobile Insurance Company, the insurer of defendants in the personal injury action. The trial court concluded State Farm was not liable for prejudgment interest pursuant to Civil Code section 3291 on any judgment which may ultimately be awarded against its insured. (All further undesignated code references are to the Civil Code.)

The applicable insurance policy provides the insurer’s obligation to pay prejudgment interest is cut off when the insurer “offer(s) . . . the amount due under this coverage.” We shall conclude State Farm cut off its obligation to pay prejudgment interest when it offered the policy limits in settlement to plaintiff before plaintiff’s lawsuit was filed. We shall therefore affirm the summary judgment.

Factual and Procedural Background

On May 18, 1985, appellant Crane was rendered paraplegic in an accident while riding as a passenger in a vehicle owned by Michael White and driven with Michael’s permission by Donald White. Michael White carried an…