"Diminished Value" Litigation (Multiple Jurisdictions)
Eimer Stahl attorneys represented two insurers in "diminished value" automobile insurance cases. In these cases plaintiffs asserted that the insurers wrongfully refused to pay policyholders an amount to compensate them for the alleged inherent loss in value that their vehicles suffered after a collision, even if the insurers had paid to have the vehicle fully, completely, and properly repaired. We prevailed on a motion to dismiss in one jurisdiction, convincing the court that the automobile policies only obligated the insurers to repair the damaged cars and imposed no obligation to compensate for alleged "diminished value." When the Georgia Supreme Court ruled to the contrary (in a case not involving our clients), we settled the Georgia cases on a state-wide class basis.