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Insurance – settlement — interest

By: WISCONSIN LAW JOURNAL STAFF//September 16, 2014//

Insurance – settlement — interest

By: WISCONSIN LAW JOURNAL STAFF//September 16, 2014//

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Wisconsin Court of Appeals

Civil

Insurance – settlement — interest

A court may impose a reasonable time for an insurer to pay a settlement, and impose interest at a rate of 5 percent.

“We agree with Zurich that WIS. STAT. § 628.46 does not apply when an insurance company fails to pay an amount required by a settlement agreement resolving a disputed claim within thirty days after the agreement is reached. Nevertheless, we conclude the circuit court properly imposed a thirty-day time limit for payment of the settlement amount. A reasonable time for payment is implied when a contract does not specify a time for performance. Here, the circuit court concluded a thirty-day time limit was reasonable under the circumstances, and Zurich has not convinced us that finding was clearly erroneous. We therefore affirm in part.”

“However, we agree with Zurich that the circuit court should have calculated the interest due using a rate of five percent per year, pursuant to WIS. STAT. § 138.04, instead of twelve percent. Accordingly, we reverse in part and remand with directions that the court recalculate the amount of interest using an annual interest rate of five percent.”

Affirmed in part, and Reversed in part.

Recommended for publication in the official reports.

2014AP391 Singler v. Zurich American Ins. Co.

Dist. III, Outagamie County, Gage, J., Stark, J.

Attorneys: For Appellant: Pytlik, Paul J., Waukesha; Versnik, Andrew, Waukesha; For Respondent: Siddall, Michael S., Appleton; Menghini, Michael C., Appleton

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