In Scotland, a claim for diminution in value refers to a legal concept that allows individuals to seek compensation for the reduced value of their property, as a result of damage or loss caused by another party’s negligence or wrongful actions. It applies in cases where the property has been damaged but can still be repaired or restored.
The claim for diminution in value recognises that even if repairs are carried out to restore the property to its previous condition, its value may have decreased due to the history of damage. For example, if a car is involved in an accident and repaired, its resale value might be lower than a similar car without a history of damage.
To make a claim for diminution in value in Scotland, the claimant typically needs to establish the following:
- Duty of care: The defendant owed a duty of care to the claimant, such as in a car accident caused by another driver’s negligence.
- Breach of duty: The defendant breached that duty of care, resulting in damage or loss to the claimant’s property.
- Causation: The claimant must demonstrate that the breach of duty directly caused the diminished value of their property.
- Proof of diminution: The claimant needs to provide evidence or expert opinion to establish the extent of the diminution in value.
If successful, the claimant may be entitled to compensation for the difference between the pre-damage value of the property and its reduced post-damage value.
Advancing a claim for diminution in value requires careful consideration and may not be appropriate in every case. The cost of an expert report, as required to prove the loss, can sometimes outweigh the potential value of the diminution.
If you wish to discuss a potential claim our expert lawyers are here to help, please contact us today.