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UIM Policy Limits with Interest on Top: Awards of Interest an the Sudden Emergency Doctrine

Motor Vehicle Litigation / November 1, 2021

In Atkinson v Kreilter, et al., the Court affirmed the trial court’s decision in part and held that pursuant to the policy language between AAIC and Plaintiffs, the UIM limits were only for compensatory damages and an award of interest for non-payment is not subject to UIM limits. The Court remanded for modification of Plaintiffs’ award due to a duplicative award of interest under pre-judgement statutory interest found in MCL 600.6013 and the Unfair Trade Practices Act (UTPA) found in MCL 500.2001 et seq.

In addition, the Court affirmed the trial court’s decision and held that the sudden emergency doctrine did not apply to the present facts because Tyler Kreilter created the sudden emergency after being repeatedly advised of his reckless behavior prior to the collision.

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