Massachusetts Appeals Court Orders Lloyd’s of London to Pay Additional $800,000 in Interest Following Coverage Dispute Recalculation

The Massachusetts Appeals Court has decided that Lloyd’s of London owes an additional $800,000 in interest due to a recalculation in a $2.5 million coverage dispute. This determination arises from a challenge by PeoplesBank, who argued for interest accrual starting July 3, 2018, when Lloyd’s initially denied coverage. The insurer had disputed this, maintaining that interest should only apply from April 27, 2021, when the parties reached a settlement. The appellate decision therefore recalibrated the prejudgment interest, adding significant financial implications to Lloyd’s liability. A detailed explanation of how the application of § 6C impacts this case can be read here.