Legal Question in Business Law in California

Diminution of Value can exceed value of car?

If a car is worth $5,000, and there are $3,500 in repair costs and $2,000 in diminished value from the accident history, for a total of $5,500 in damages, can the plaintiff be awarded the $5,500 in damages even though they exceed the $5,000 value of the car?

Basically, my question is, is the injured party limited to the $5,000 value of the car or can he get awarded the $5,500 total damages when the diminished value element of his damages puts him above the value of the car? (i.e. the $2,000 diminished value puts his damages beyond the $5,000 value of the car when added to the cost of repair).


Asked on 2/12/09, 4:35 pm

1 Answer from Attorneys
Edward Hoffman Law Offices of Edward A. Hoffman

Re: Diminution of Value can exceed value of car?

In the language of insurance adjusters, your car has been totaled. And the situation is worse than you think.

You say that the car is worth $5,000, but you also say its value has been diminished by $2,000 due to prior accidents. That means your car is worth only $3,000. The $5,000 figure is for a car like yours but without that damage.

You are entitled to the replacement value of your car. Under the facts you have given, that value is $3,000. Awarding you $5,000 would force the defendant to pay for pre-existing damage that he didn't cause. Such a result would be unjust.

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Answered on 2/12/09, 5:07 pm


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