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TRAVELERS INS. CO. v. TRANSPORT INS. CO.

No. 87-1478.

846 F.2d 1048 (1988)

The TRAVELERS INSURANCE COMPANY, Plaintiff-Appellee, v. TRANSPORT INSURANCE COMPANY, Defendant-Third-Party Plaintiff-Appellee, v. Federal Insurance Company, Third-Party Defendant-Appellant.

United States Court of Appeals, Seventh Circuit.

Decided April 28, 1988.

As Amended May 3, 1988.

Attorney(s) appearing for the Case

James W. Riley, Jr., Callahan & Riley, Indianapolis, Ind., for FIC.

Robert M. Edwards, Jr., Jones, Obenchain, Ford, Pankow & Lewis, South Bend, Ind., for Travelers Ins.

John E. Doran, Doran, Manion, Boynton, Kamm & Esmont, South Bend, Ind., for Transport Ins.

Before HARLINGTON WOOD, Jr., COFFEY and RIPPLE, Circuit Judges.

COFFEY, Circuit Judge.

In a diversity of citizenship jurisdiction suit, Federal Insurance Company appeals the district court's decision ordering Federal to pay prejudgment interest of 8% and post-judgment interest of 12% on a sum of money that Federal and Travelers Insurance Company owed to Transport Insurance Company for settlement of a disputed claim. We reverse and remand.

I.

On August 28, 1982, Flanigan Tires, Inc. entered into a "trip lease...

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