diminished value

[John H.]

72 original owner. Interior FIRE while in repair shop. JJ Grundy my insurance
paid claim. Shop refused any fault, said radio shorted out. Radio and fuse
are fine. Question- I am about to file in small claims court, $3000 max. for
diminished value, since car now has a past history of fire. What are my chances
of winning, would a expert appraisal person be necessary, about $300 for expert. Has anyone tried diminished value type of suit.?
This is a condensed version of many problems that I had with this shop.
Thanks Big John

[Bill W.]

Re: diminished value

You only have deminished value if you can prove the car is worth less "after" it is repaired than before it was damaged. In many cases the car is worth more depending on the condition before the damage. Also deminished value is based on the value "after" it is sold. In the cases I have seen at work (chev.dealer body shop)the ins.co. has a senior claims handler do an inspection, take lots of pictures etc they check everything. then they pay an independant appraiser to do the same.If they agree the car looks and performs as good as it was pre loss they dont pay.I was told they had only paid out on about 2 cars ever.Keep in mind these were new cars with a nada book value . And again if its not for sale or sold it cant be worth less. If the car has been repaired to it "pre loss "condition I dont think you are going to have any luck getting any more out them...good luck.... Bill

[Christopher R.]

Re: diminished value

This is a legal question. You really need to consult with a local attorney. Many states have consumer protection laws that would give you increased bargaining power in this situation.

You will have problems proving fault and damages. What caused the fire? Was any impartial investigation done as to cause? What's the diminution in value? You'll need evidence, probably in the form of expert testimony. You did sign off on your claim with Grundy. Heck, the other side will make a good argument for appreciation. You got 32 year old parts replaced and repaired.

[Dave Suesz]

Clarifiying questions...

Has the car been repaired? And at who's cost?

[Jack H.]

Re: diminished value

You really should consult a local attorney. I've collected diminished value for my clients many times, but always on a new car, not an antique or collectible. It will require expert testimony that the car is worth less, even after being repaired, than it was prior to the damage. I'm biased, but it's my opinion that an original car with original parts is more valuable than one with the same new parts. However, many would disagree. Look at the results of Barrett-Jackson. The restored cars bring big bucks.
Do spend a little money on a attorney for your own peace of mind. Many facts will enter into this and an attorney can point all these out to you.

[Kevin M.]

Re: diminished value

I received diminished value after filling a law suite against the person that hit me. They paid me off before trial at arbitration. I hired an appraiser and made copies of Corvette ads stating No-Hit and proved that a No-Hit was more valuable than cars that had a history of a collision. I think you have a very good case, what is the first thing most repair manuals state "disconnect the battery". I would claim it was the responsibility of the shop owner to properly care for and prevent such an event. Did you have a battery disconnect switch installed by chance? Thay have insurance.

Kevin