Legal Question in Civil Litigation in Pennsylvania

Re: Diminished Value

Yes, you file suit. You aren't really suing the kid, you are going after his insurance company.

The insurance is suppose to put the party in the position they were BEFORE the accident, but in PA (everywhere actually), the insurance company will say they do not have to pay diminished value because 9 times out of 10, they refuse to pay out what you contracted for unless you make them.

PA (and numerous other states) adopted the Insurance Services Office (ISO) filing PP 13 01 12 99, which specificly excludes diminished value. HOWEVER, that applies to first party damages (your ins. co. may not be compelled to pay diminished value) but the kid's ins. co. DOES have to pay. Here you are a third party benificiary.

There is a Delaware case on point Delledonne v. State Farm Mutual Automobile Insurance, Inc., which says the ins. co. has to pay diminished value to first parties. In PA, Munoz v. Allstate Insurance, is a class action by first parties demanding reimbursement on this exact issue, but it has not been decided yet.

You might also ask WHY the diminished value, and take the car back to the body shop and see if they can do additional work to restore more of the vehicle's value (that would piss off the ins. co.!).

You can also submit the claim to YOUR nsurance company and let them fight it out with the kids insurance company.

If you let them know you are going to fight, they MIGHT cave in, but that's a 1 in 10,000 chance. Anothe roption is to file a small claims complaint. If the insurer is Allstate you may need to wait to see how Munoz comes out.

If you have additional questions, you can call my office (856-672-1166) or John Shub (regarding Munoz) at 800-883-2299.

Good luck to you.

Kevin J. Begley