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04/06/76 DITTUS v. GEYMAN

April 6, 1976

DITTUS
v.
GEYMAN



Appeal from Oakland, Richard D. Kuhn, J.

Leave to appeal denied, 397 Mich 837.

Bashara, P. J., and D. F. Walsh and W. S. White,* JJ. W. S. White, J., concurred. D. F. Walsh, J. (concurring in part, Dissenting in part).

SYLLABUS BY THE COURT

Opinion of the Court

1. Insurance -- Construction of Policies -- Ambiguities.

Insurance policies must be construed in accordance with the ordinary and popular sense of the language used in order to avoid strained interpretations, and policies containing ambiguities are construed against the insurer and most favorably to the insured.

2. Costs -- Common Law.

Costs were not awardable at common law and are presently recoverable only when authorized by statute.

3. Costs -- Prejudgment Interest -- Statutes.

Prejudgment interest is not included within the terms which are deemed by statute to be taxable as costs (MCLA 600.2401; MSA 27A.2401).

4. Judgment -- Interest -- Prejudgment Interest -- Statutes.

Prejudgment interest from the date of the complaint is purely a statutory creation and such interest is computed and added to the general verdict as interest on the judgment and not as an element of damages (MCLA 600.6013; MSA 27A.6013).

5. Insurance -- Insurer -- Interest -- Liability.

An insurer is liable only for the interest that accrues on the amount of risk it has assumed.

6. Judgment -- Interest -- Prejudgment Interest -- Statutes.

Prejudgment interest from the date of the complaint is required by statute to be paid on a judgment (MCLA 600.6013; MSA 27A.6013).

7. Insurance -- Insured -- Insurer -- Prejudgment Interest -- Public Policy.

Public policy demands that the liability of an insured for prejudgment interest is also imposed upon the insurer to the extent that the amount of the prejudgment interest when added to the amount of the judgment does not exceed the policy limits.

Partial Dissent by D. F. Walsh, J.

8. Insurance -- Prejudgment Interest -- ...


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