110 F. App'x 370

CENTRAL STATES HEALTH & LIFE COMPANY OF OMAHA, NEBRASKA, Plaintiff-Appellee, v. Herbert Leon BREWER, III, Defendant-Appellant.

No. 03-61079.

Summary Calendar.

United States Court of Appeals, Fifth Circuit.

Decided Aug. 4, 2004.

David Brian McLaurin, James Gregory Brown, McLaurin Law Firm, Tupelo, MS, for Plaintiff-Appellee.

William Bolton Seale, The Seale Law Firm, Memphis, TN, for Defendant-Appellant.

Before JONES, BENAVIDES, and CLEMENT, Circuit Judges.

PER CURIAM: *

Herbert Leon Brewer, III, appeals the district court’s post-judgment determination that Central States Health & Life Company of Omaha, Nebraska was only required to pay simple interest on disability benefits due to Brewer.1 The benefits are owed pursuant to an insurance policy providing that:

Any claims payable under the terms of the policy will be paid within 45 days after receipt by us of due written proof of loss.
If we do not comply with the requirements of this provision we will pay interest on accrued benefits at a rate of 1-1/2% per month on the amount of the claim until it is finally settled or resolved.

*371(Emphasis added.) We agree with the district court that this provision calls for the payment of simple interest.

The policy contemplates interest only on accrued benefits or the amount of the claim. It says nothing of any interest owing on that interest or of any interest owing on the balance due. Cf., Exxon Corp. v. Crosby-Mississippi Resources, Ltd., 40 F.3d 1474, 1488 (5th Cir.1995) (holding that a contract provision that “the unpaid balance shall bear interest monthly at the rate of twelve percent (12%) per annum” (emphasis added) required compound interest). We note that this is in accord with the general common law preference for simple interest absent express authorization otherwise. See Stovall v. Illinois Central Gulf Railroad Co., 722 F.2d 190, 192 (5th Cir.1984). We have no reason to believe the Mississippi Supreme Court would not follow the general common law rule.

AFFIRMED.

Central States Health & Life Co. v. Brewer
110 F. App'x 370

Case Details

Name
Central States Health & Life Co. v. Brewer
Decision Date
Aug 4, 2004
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110 F. App'x 370

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United States

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