header-logo header-logo

23 January 2015 / Stewart Fairhurst
Issue: 7637 / Categories: Features , Insurance / reinsurance
printer mail-detail

Vehicular diminution

fairhurst

Is there a claim for the vehicle’s diminution; if so, with what limits? Stewart Fairhurst reports

A vehicle is damaged in a collision and splendidly repaired. But might there still be a claim for damages arising out of the vehicle’s loss of value, simply because its history now involves it having been in a collision?

The leading case in the Court of Appeal—Payton v Brooks [1974] 1 Lloyd’s Rep 241—is the best starting point. In this case it was held that damages for diminution of value could be claimed. Roskill LJ set out this principle: “In a case where the evidence justifies a finding that there has been, on top of the cost of repairs, some diminution in market value—or, to put the point another way, justifies the conclusion that the loss to the plaintiff has not been fully compensated by the receipt of the costs of complete and adequate repairs, because of a resultant diminution in market value, I can see no reason why the plaintiff should be deprived of recovery under that

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Walkers—Muriel Marseille

Walkers—Muriel Marseille

Ashurst's Chief Risk Officer joins Walkers

Excello Law—John Osborne

Excello Law—John Osborne

Northern family lawyer John Osborne joins Excello

mfg Solicitors—Rebecca Rogers, Kennedy Langley & Victoria Griffiths

mfg Solicitors—Rebecca Rogers, Kennedy Langley & Victoria Griffiths

Trio of promotions announced at Kidderminster law firm mfg Solicitors

NEWS
A sole director can conspire with their own company for the purposes of the tort of unlawful means conspiracy, the High Court has ruled in a judgment with potentially wide implications for business disputes
The Court of Appeal has reinforced that domicile depends on intention rather than residence alone, in a significant post-Brexit ruling on cross-border financial remedy claims
The Chancery Division's long history comes to an end this autumn as it is reborn as the Business and Property Division, prompting questions over whether the shake-up is really necessary
The Financial Conduct Authority (FCA) continues to show that failing to disclose regulatory issues can attract harsher consequences than the original misconduct itself
Rejecting a generous settlement can prove an expensive mistake, as two recent high-profile cases demonstrate
back-to-top-scroll