ILL. APPEALS COURT QUASHES DIMINISHED VALUE CLAIM:

May 3, 2004

An Illinois appeals court has rejected a plaintiff’s claim that its auto insurer breached its contract by refusing to pay for diminished value in an auto repair case, Martin v. State Farm. “Although the appeals court decision doesn’t throw out the concept of diminished value, it upholds the fact that the insurer could not have broken its contract with the plaintiff since diminished value is not covered under the insurance contract,” said Laura Kotelman, regional manager and senior counsel for the Property Casualty Insurers Association of America (PCI). PCI filed an amicus brief in the case.