Massachusetts Weighs in on 3rd-Party Liability For Diminished Value Damages

By Gary L. Wickert | March 16, 2020

  • March 16, 2020 at 2:08 pm
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    The writer refers to a “column of states” that do not allow for third-party inherent diminished value claims. We are aware of none with the possible exception of Michigan. New York case law only provided for diminished value in leiu of payment for repairs but that makes little sense. California recently changed its jury instructions. As a result of this decision, California insurance companies will be faced with jury instructions which state that they “must” consider the cost of repair AND diminution of value. Until plaintiffs are willing to step up and challenge current case laws regarding auto diminished value, the Massachusetts ruling may represent an opportunity to test this approach in more common-sense states.

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