QuestionI purchased a RV last May for $469,000, and have had numerous electrical problems. Last month it caught on fire, and the insurance contends it was electrical, and the manufactures responsibility. The manufacture said they will fix it under guarantee, what about diminished value if they repair it, how do I determine what it will be worth. The fire was extensive Thank You
AnswerHi Dr. Don,
I have no knowledge of any right to bring a diminished value claim for a manufacture's defect. The diminished value claim information http://www.settlementcentral.com/page0455.htm online deals with the consequential damages of auto accidents ONLY.
FAQ diminished value claims http://www.settlementcentral.com/page0454.htm
Let's take a moment to analyze this though. Contract law also has the concept of consequential damages for breach of contract. So, one would think that if a breach of contract could be shown, and a foreseeable consequence of that breach is diminished value of the asset, then one should be able to argue for a DV claim.
What is the breach of contract here? Perhaps the defect in manufacturing. Hence, once the repairs are completed will a person pay more to buy the same RV as yours except that it has no such history as yours?
Yes, a buyer MIGHT pay more for a vehicle with no known history of electrical problems since that kind of problem is worrisome and hard to find.
How much more is what your expert will have to determine.
For my money, I might take your RV since it has been refurbished anew and THAT would give me more assurance than one off the lot. But that is just me. Your expert can figure out the amount by which a buyer will penalize your vehicle just to buy a like one without a history of electrical problems.
I think you could win a DV claim, and with the huge value of your asset, it makes sense to hire an expert to work up the claim, as opposed to your doing it yourself.
Best wishes,
Dr. Settlement, J.D. (Juris Doctor)
www.settlementcentral.com
