The Alabama Supreme Court has changed a 57-year-old standard on how commercial vehicle owners get compensated when their vehicle is totaled in an accident.
The court held in 1955 that an owner who recovered damages for the total loss of a vehicle could not also get damages for loss of the use of the same vehicle. The Supreme Court changed that Friday to say the owner could recover damages for the destroyed vehicle and for loss of use. However, damages are limited to a reasonable time required to find a replacement vehicle.
The ruling came in an appeal by Huntsville Cab Co. The company received compensation for a wreck that totaled a cab. But it also wanted to recover $7,000 in income lost while waiting a month for a replacement.
Was this article valuable?
Here are more articles you may enjoy.
Tesla’s Austin Robotaxis Report 14 Crashes in First Eight Months 
Asbestos Lawsuits Prompt Vanderbilt Minerals to File Bankruptcy 
Bayer to Make $10.5 Billion Push to Settle Roundup Cases 
AIG’s Zaffino: Outcomes From AI Use Went From ‘Aspirational’ to ‘Beyond Expectations’ 
Want to stay up to date?
Get the latest insurance news
sent straight to your inbox.