Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Commercial Leasing Law & StrategyLJN NewslettersNewsSections

Coverage for 'Diminution in Value' in Commercial Property Insurance Policies

BY Lewis E. Hassett
June 10, 2013

Cases in numerous states mandate coverage for post-repair diminution of value under automobile policies. See, e.g., MFA Ins. Co. v. Citizens Nat. Bank of Hope, 545 S.W.2d 70 (Ark. 1977) (“the proper measure of damages was the difference in the value before it was wrecked and the value after it was wrecked, repaired, and tendered to the insured”); Venable v. Imp. Volkswagen, Inc., 519 P.2d 667 (Kan. 1974); Potomac Ins. Co. v. Wilkinson, 57 So. 2d 158 (Miss. 1952); Dunmire Motor Co. v. Oregon Mut. Fire Ins. Co., 114 P.2d 1005 (Or. 1941); Ciresi v. Globe & Rutgers Fire Ins. Co., 244 N.W. 688 (Minn. 1932); Edwards v. Maryland Motorcar Ins. Co., 197 N.Y.S. 460 (N.Y. App. Div. 1922); Hyden v. Farmers Ins. Exch., 20 P.3d 1222 (Colo. Ct. App. 2000). But few mandate such coverage under commercial property policies not covering automobiles.

In Royal Capital Development, LLC v. Maryland Cas. Co., 728 S.E.2d 234 (Ga. 2012), the Georgia Supreme Court recently announced that commercial property insurance policies governed by Georgia law provide coverage for post-repair diminution in value damages. This case generally stands in contrast to the earlier holdings of courts in other states, which had held that post-repair diminution in value damages are not covered under commercial property policies. Because few courts have addressed this issue at all, the holding of Royal Capital Development may prove significant.

Georgia Supreme Court Confirms That Post-Repair Diminution In Value Is Covered

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Yachts, Jets, Horses & Hooch: Specialized Commercial Leasing Models Image

Defining commercial real estate asset class is essentially a property explaining how it identifies — not necessarily what its original intention was or what others think it ought to be. This article discusses, from a general issue-spot and contextual analysis perspective, how lawyers ought to think about specialized leasing formats and the regulatory backdrops that may inform what the documentation needs to contain for compliance purposes.

Hyperlinked Documents: The Latest e-Discovery Challenge Image

As courts and discovery experts debate whether hyperlinked content should be treated the same as traditional attachments, legal practitioners are grappling with the technical and legal complexities of collecting, analyzing and reviewing these documents in real-world cases.

Identifying Your Practice's Differentiator Image

How to Convey Your Merits In a Way That Earns Trust, Clients and Distinctions Just as no two individuals have the exact same face, no two lawyers practice in their respective fields or serve clients in the exact same way. Think of this as a "Unique Value Proposition." Internal consideration about what you uniquely bring to your clients, colleagues, firm and industry can provide untold benefits for your law practice.

Risks and Ad Fraud Protection In Digital Advertising Image

The ever-evolving digital marketing landscape, coupled with the industry-wide adoption of programmatic advertising, poses a significant threat to the effectiveness and integrity of digital advertising campaigns. This article explores various risks to digital advertising from pixel stuffing and ad stacking to domain spoofing and bots. It will also explore what should be done to ensure ad fraud protection and improve effectiveness.

Turning Business Development Plans Into Reality Image

This article offers practical insights and best practices to navigate the path from roadmap to rainmaking, ensuring your business development efforts are not just sporadic bursts of activity, but an integrated part of your daily success.