Diminished Value Claims in Washington

In the state of Washington, if you are in an accident and were not at fault, you are entitled to file a claim for Diminished Value. The following cases are pertinent to the State of Washington and Diminished Value:

In Heaphy v. State Farm Mutual Automobile Insurance Company, 72 P.3d 220, 117 Wash. App. 438 (Wash.App.Div.2 07/01/2003) the Court of Appeal was required to accept Diminished Value as a basis its decision because defendant State Farm admitted it owed diminished value for the purpose of avoiding class action certification and to compel arbitration. The case stands for methods to determine diminished value or full indemnity.

In Thompson v. King Feed & Nutrition Service, Inc., 105 P.3d 378, 153 Wash.2d 447 (Wash. 01/20/2005) the Washington Supreme Court allowed recovery of diminished value of a structure. In so finding the court said: "The owner is entitled to recover the entire cost of restoring a damaged building to its former condition unless such cost exceeds its diminution in value as the result of the injury, in which event the recovery must be limited to the amount of such diminution. Under this rule the court should receive evidence both as to the cost of restoring the building and as to the amount of its diminished value, and then adopt as the measure of damages the lesser of the two amounts."

In Kurtis R. v. Sto Industries, Inc., 132 P.3d 115, 156 Wash.2d 677 (Wash. 04/06/2006) the Washington Supreme Court recognized that where the damage to real property is permanent, a plaintiff is entitled to recover, not only for the costs of restoration and repair, but also for the property's diminished value.

Diminished Value Washington Facts

First Party Covered	No
Third Party Covered	Yes
Statute of Limitations	3 Years

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