Prejudgment Interest is Covered Under Reinsurance Contract, Judge Rules

CINCINNATI - An Ohio federal judge has ruled that prejudgment interest imposed under Wisconsin law in a medical malpractice case is covered under a reinsurance contract issued by Employers Reinsurance Corp. OHIC Insurance Co. v. Employers Reinsurance Corp., No. 2-08-cv-83 (S.D. Ohio).

In a March 8 opinion, Judge James L Graham of the U.S. District Court for the Southern District of Ohio further ruled, however, that the cedent is not entitled to indemnification for a portion of the legal expenses and post-judgment interest it incurred in connection with the underlying lawsuit.

In January 1994, OHIC and ERC entered into …