Washington Court Allows Recovery For Residual Diminished Value Following Vehicle Repairs

One by one, states have begun to recognize a vehicle owner’s third-party claim for residual diminished value damage, or ‘stigma damage’, which is the loss of value of an automobile that remains after it is completely and professionally repaired.

It is the loss of value that results from the simple fact that the vehicle has been in an accident. Given two identical vehicles on a car lot, the one never damaged is preferable to the one that has been damaged and repaired, and is therefore, worth less.

But despite this, a surprising number of states have not yet decided on whether they will allow recovery of this residual damage from a third-party tortfeasor.

On December 6, 2022, the Washington Court of Appeals decided the case of Grothe v. Kushnivich, joining the growing ranks of states which allow recovery for post-repair residual diminution in value of a damaged vehicle.

In Grothe v. Kushnivich, Mark Grothe bought a new Volvo and had it shipped from California to his home in Washington by Victor Kushnivich. Along the way, Kushnivich’s truck was involved in an accident, and Grothe’s car suffered extensive damage.