OHIC Insurance sued to recover payment of statutory interest and legal expenses incurred in a 1998 Wisconsin medical malpractice lawsuit pursuant to a clause in a reinsurance agreement with ERC indemnifying OHIC for certain “losses” and “claim expenses.” Both parties moved for summary judgment, leaving the Court to decide two primary issues: (1) whether the “prejudgment” interest imposed pursuant to a Wisconsin statute is covered by the reinsurance agreement; and (2) whether a portion of the “postjudgment” interest imposed by statute and the legal expenses incurred by OHIC in defending the malpractice suit are covered by the reinsurance agreement.
Resolving question 1, the Court concluded that OHIC’s payment of the prejudgment interest constituted a “loss” under the reinsurance agreement. Thus, ERC was obligated to reimburse OHIC as to this loss. Conversely, the Court determined that OHIC was not entitled to indemnification for a portion of the legal expenses and postjudgment interest incurred in defending the malpractice suit. In addition to these determinations, the Court also granted ERC’s request to exclude OHIC’s expert’s opinion and granted ERC’s motion to file sur-reply briefs. OHIC Ins. Co. v. Employers Reinsurance Corp., Case No. 08-cv-93 (S.D. Ohio Mar. 8, 2010).