Nabila Rahim | Zelle With its March 25 decision in Schoening Investment LP v. Cincinnati Casualty Co., the U.S. Court of Appeals for the Sixth Circuit recently joined a growing list of courts that have considered whether to depreciate labor costs to determine actual cash value.[1] The court relied on essential contract interpretation principles to evaluate… Continue reading 6th Circ. Ruling Highlights Split On Labor Cost Depreciation
Tag: Depreciation of Labor
Actual Cost Value Includes Depreciation of Repair Labor Costs
Tred R. Eyerly | Insurance Law Hawaii The court granted the insurer’s motion to dismiss after determining that benefits paid for actual cost value (ACV) did not include repair or replacement labor costs. Shahan v. Allstate Vehicle & Prop. Ins. Co., 2022 U.S. Dist. LEXIS 135488 (W.D. La. July 29, 2022). Hurricane… Continue reading Actual Cost Value Includes Depreciation of Repair Labor Costs
Think Twice About Depreciating Repair Costs in Our State, says the Tennessee Supreme Court
Andres Avila | SDV Insights | June 11, 2019 Tennessee’s Supreme Court recently held that an insurer may not withhold repair labor costs as depreciation when the policy definition of actual cash value is found to be ambiguous. Tennessee joins other states like California and Vermont that prohibit the depreciation of repair labor costs in… Continue reading Think Twice About Depreciating Repair Costs in Our State, says the Tennessee Supreme Court
Tennessee Supreme Court Holds That Replacement Cost Less Depreciation Does Not Allow for Depreciation of Labor When Calculating Actual Cash Value of a Property Loss
Heidi Hudson Raschke | Property Casualty Focus | May 2, 2019 Insurance policies are designed to indemnify an insured by putting the policyholder in the same position he or she would have been in had no loss occurred. In the context of property insurance policies, damaged property is typically valued based on its estimated actual… Continue reading Tennessee Supreme Court Holds That Replacement Cost Less Depreciation Does Not Allow for Depreciation of Labor When Calculating Actual Cash Value of a Property Loss
Update on Labor Depreciation Class Actions
Wystan Ackerman | Robinson & Cole | August 14, 2017 There have been two recent federal district court decisions in the widespread class action litigation involving the application of depreciation to the labor cost component of replacement cost value on property insurance claims. (For background on this issue, see my February 21, 2017 blog post.) The… Continue reading Update on Labor Depreciation Class Actions