The Court of Appeals of Indiana has allowed a class-action suit involving the concept of diminished value in an auto repair case to be heard in district court. In the case of Allgood v. Meridian Security Insurance Co., the Court of Appeals reversed a lower court ruling dismissing the plaintiff’s suit. The appellate court held the trial court erred in granting Meridian’s motion to dismiss Allgood’s claim for damages for failure to pay for diminished value. Meridian petitioned for a rehearing and a number of insurance trade associations submitted an amicus brief. Upon considering the arguments, the court reaffirmed its decision and remanded the case to the trial court for further proceedings. However, the Court of Appeals did note that as a consequence of its decision, insurers might include exclusions in their policies that specifically state the insurer will not pay for diminished value.
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