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FOR PUBLICATION

FILED
Dec 30 2010, 9:25 am
of the supreme court, court of appeals and tax court

CLERK

ATTORNEY FOR APPELLANT: NICHOLAS C. DEETS Hovde Dassow & Deets LLC Indianapolis, Indiana

ATTORNEY FOR APPELLEE: ROBERT A. DURHAM State Farm Litigation Counsel Indianapolis, Indiana

IN THE COURT OF APPEALS OF INDIANA
KATHY INMAN, Appellant-Plaintiff, vs. STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY, Appellee-Defendant. ) ) ) ) ) ) ) ) ) )

No. 41A01-1005-CT-225

APPEAL FROM THE JOHNSON SUPERIOR COURT NO. 3 The Honorable Richard L. Tandy, Special Judge Cause No. 41D03-0711-CT-66

December 30, 2010 OPINION - FOR PUBLICATION RILEY, Judge

STATEMENT OF THE CASE Appellant-Plaintiff, Kathy Inman (Inman), appeals the trial courts denial of her motion for prejudgment interest pursuant to Indiana Code section 34-51-4-5 in her action against Appellee-Defendant, State Farm Mutual Automobile Insurance Company (State Farm). We reverse and remand with instructions. ISSUE Inman raises one issue on appeal, which we restate as follows: Whether the trial court erred in denying her motion for prejudgment interest. FACTS AND PROCEDURAL HISTORY Inman and Nicholas Shinnamon (Shinnamon) were involved in a motor vehicle collision on November 26, 2006. On November 2, 2007, Inman filed a complaint

alleging Shinnamon was negligent when he struck the rear of her vehicle. Inman further alleged that as a result of Shinnamons negligence, she suffered physical injuries and other compensable damages. In January 2009, Shinnamons insurer, American Family Insurance Company, settled the matter on Shinnamons behalf by paying Inman the $50,000 limit of Shinnamons automobile liability policy. Inmans insurer, State Farm, consented to the settlement. Following the settlement, and with State Farms consent, Inman dismissed Shinnamon from the action. On January 22, 2009, Inman filed an amended complaint against State Farm seeking an additional $50,000 in underinsured motorist benefits from her policy that had 2

a $100,000 per person cap on liability. The amended complaint alleged that as a result of Shinnamons negligence, Inman sustained bodily injury damages in excess of $100,000 and was entitled to a $50,000 payment from State Farm. On March 11, 2009, State Farm filed an answer denying that Shinnamon was at fault and that Inman was entitled to a $50,000 payment from State Farm. On June 14, 2009, Inman filed a written offer of settlement pursuant to Ind. Code section 34-51-4-6 wherein she made an offer to settle the case for the policy limits of $50,000. State Farm did not respond to the offer, and the matter proceeded to trial in March 2010. On March 17, 2010, the jury returned a verdict in favor of Inman for $50,000. On April 12, 2010, Inman filed a motion for prejudgment interest pursuant to Indiana Code section 34-51-4-5 wherein she sought 10% prejudgment interest beginning on January 22, 2009, the date she filed the amended complaint against State Farm. She asked the court to award her $3,616.44, plus $13.10 per day after April 12, 2010. On April 30, 2010, the trial court summarily denied Inmans motion. Inman now appeals the denial. Additional facts will be provided as necessary. DISCUSSION AND DECISION I. Standard of Review The Tort Prejudgment Interest Statute (the TPIS) permits a trial court to award prejudgment interest to a party that prevails at trial in "any civil action arising out of tortious conduct" so long as that party has made a timely offer of settlement according to terms specified in the statute. I.C.

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