$28M award against insurer upheld on appeal, plus prejudgment interest

Prejudgment interest should be added to a jury award of $28 million in a breach of contract class action brought against an insurer, the Western District Court of Appeals ruled on September 24, affirming the verdict and reversing denial of prejudgment interest.

David B. Karr filed a class action against Kansas City Life Insurance Company (KCL), asserting three claims for breach of contract related to how the accumulated cash value for the policies was calculated.

He argued that KCL breached the policies by reducing each policy’s monthly cash value by an overstated monthly deduction comprised of a “cost of insurance” amount and a “monthly expense charge.”

Click here to continue reading the full article on molawyersmedia.com (subscription may be required).