Ferrellgas, Inc. v. American Premier Underwriters, Inc.

ORDER REGARDING CROSS-MOTIONS TO DETERMINE PREJUDGMENT INTEREST

Before the Court are cross-motions filed by plaintiff Ferrellgas, Inc. (“Ferrellgas”), defendant and cross-claimant American Premier Underwriters, Inc. (“American Premier”) (collectively referred to herein as “plaintiffs”), and defendant and cross-defendant Hartford Accident & Indemnity Company (“Hartford”) for a determination of the amount of prejudgment interest owed by Hartford to Ferrellgas and American Premier. All three parties have consented in writing to the final and binding disposition of the cross-motions by the undersigned magistrate judge. [See Stipulation filed March 12, 1999]. See generally 28 U.S.C. § 636 (c).

The issues to be determined are: (1) Is the amount owed by Hartford severable into separate claims for indemnity and defense costs? (2) What is the date or dates on which prejudgment interest began to accrue? (3) What is the proper method for applying partial payments already made by Hartford?

Background

The following chronology of the relevant events, which is undisputed, lays the groundwork for resolution of the legal issues.

May 1, 1985: The underlying liability insurance policies became…