Armacost v. Amica Mutual Insurance

BOWNES, Senior Circuit Judge.

The principal issue in this automobile accident diversity case is whether a Rhode Island statute requires that an insurer pay prejudgment interest over and above its policy limits to the plaintiff. We hold that the statute does so require. Some background facts are necessary.

I

Plaintiff-appellee, Melinda Ryan Armacost, was a pedestrian in Newport, Rhode Island, when she was struck by an automobile owned and operated by Stephen B. Owen, a resident of New York. Owen was insured by defendant-appellant, Arnica Mutual Insurance Company (Arnica) of Providence, Rhode…