La. Court Rejects Appeal

Rejecting an appeal of a previous court decision, the Louisiana Supreme Court let stand a lower court ruling that rejects the notion that insurers are required to pay for diminished value. The plaintiff in Campbell v. Markel American Insurance Cos. sought to overturn a Court of Appeals finding that the insurer met its obligation under the insurance contract by making full and adequate repairs to a vehicle and it was not required to pay for “diminished” value. By denying the appeal, the Supreme Court ended the appeal process in this case. According to the National Association of Independent Insurers (NAII), diminished value as a legal theory has been rejected by Louisiana courts as well as by a dozen other state courts. This case is in sharp contrast to a recent Georgia Supreme Court ruling that required coverage for diminished value. The NAII had filed an amicus brief with the Court of Appeals arguing that Louisiana law required the court to enforce the plain language of the insurance contract which limits liability to the cost of repairing the vehicle.

Topics Louisiana