James C. Kotzian and Lucille E. Kotzian, His Wife, Plaintiffs-Respondents v. Donald E. Barr, Jr., Defendant-Appellant

Summary

The Supreme Court of New Jersey reversed the trial court's award of prejudgment interest on the insurer's $15,000 policy‑limit portion of the judgment, holding that prejudgment interest does not apply to that portion. The Court reasoned that the rule's purpose and the amended discretionary standard do not require interest when the insurer's contractual liability is limited, and it found no error in the trial court's discretion. Justice Pashman dissented, arguing that the insurer should be liable for prejudgment interest on the policy limit.