The Federal District Court in Mississippi held in Titan Exterior, Inc. v. Certain Underwriters at Lloyd, London, 2018 WL 1057139, _____ F.Supp.3d _____ (No. Dist. Miss. February 26, 2018) that the concept of ACV did not allow for depreciation of labor costs. In this case, the insurer calculated an ACV payment by utilizing the replacement cost value less depreciation methodology. The insurer first determined the cost to replace the damaged property and then subtracted depreciation to determine its actual cash value. The policy did not define “actual cash value” or “depreciation.” The insurer argued that the plain meaning of the term “value” included labor depreciation in as much as the concept of value meant the value of the entire property, including both materials and labor when calculating depreciation. The court rejected this argument, finding that the policy was ambiguous because some states had approved labor depreciation while other states rejected labor depreciation. Finding both positions reasonable, the court held that ACV, when defined as “replacement cost value less depreciation,” and when “depreciation” was not further defined in the policy, an ambiguity existed which had to be construed in favor of the insured.
Actual Cash Value Does Not Permit Depreciation of Labor Costs in Mississippi
On behalf of Steven Plitt, Insurance Expert | Nov 15, 2018 | Firm News
Categories
- Bad Faith (23)
- Damage Coverage (3)
- Discharged Attorney (1)
- Firm News (57)
- Injuries (14)
- Insurance Law (118)
- Liability (8)
- Medical Malpractice (5)
- Volunteer Defense (1)
Archives
- January 2021 (2)
- December 2020 (5)
- November 2020 (3)
- October 2020 (4)
- September 2020 (3)
- August 2020 (4)
- July 2020 (4)
- June 2020 (4)
- May 2020 (4)
- April 2020 (5)
- March 2020 (2)
- February 2020 (3)
- January 2020 (4)
- December 2019 (3)
- November 2019 (3)
- October 2019 (4)
- September 2019 (4)
- August 2019 (3)
- July 2019 (1)
- June 2019 (4)
- May 2019 (5)
- April 2019 (3)
- March 2019 (3)
- February 2019 (4)
- January 2019 (3)
- December 2018 (3)
- November 2018 (4)
- October 2018 (5)
- September 2018 (4)
- August 2018 (3)
- July 2018 (4)
- June 2018 (4)
- May 2018 (5)
- April 2018 (4)
- March 2018 (5)
- February 2018 (4)
- January 2018 (4)
- December 2017 (3)
- November 2017 (4)
- October 2017 (4)
- September 2017 (4)
- August 2017 (4)
- July 2017 (4)
- June 2017 (5)
- May 2017 (4)
- April 2017 (4)
- March 2017 (5)
- February 2017 (2)
- January 2017 (1)
- December 2016 (5)
- November 2016 (4)
- October 2016 (4)
- September 2016 (4)
- August 2016 (5)
- July 2016 (4)
- June 2016 (1)
Recent Posts
- MARYLAND COURT FINDS THAT THE STATUTE OF LIMITATIONS FOR BRINGING A UIM CLAIM BEGINS TO RUN FROM WHEN THE INSURER DENIES THE CLAIM
- NO RELEASE?
- 10th CIRCUIT FINDS THAT THE INSURANCE COMPANY IS NOT VICARIOUSLY LIABLE FOR THE NEGLIGENCE OF HIRED DEFENSE COUNSEL
- INSURER NOT OBLIGATED TO INVESTIGATE THE AVAILABILITY OF INSURANCE COVERAGE TO SETTLE A CLAIM
Learn More About Steven Plitt, Insurance Expert
- Teaching
- Education and Scholastic Activities
- Judicial Law Clerkships, Internships, Boards and Certifications
- American Law Institute
- American College of Coverage and Extracontractual Counsel
- Arizona Insurance Institute
- Professional Recognition
- Books Published
- Published Case Reviews
- Academic Journals and Law Reviews
- Other Professional Publications
- Speaker/Presentations
- Professional Activities

