Farmers Insurance Co. v. R.B.L. Investment Co.
Arizona Court of Appeals
138 Ariz. 562, 675 P.2d 1381 (1983)
- Written by Tammy Boggs, JD
Facts
R.B.L. Investment Co. (RBL) (defendant) owned a car dealership. A person insured by Farmers Insurance Co. (Farmers) (plaintiff) test-drove a brand-new, unsold 1980 Audi from RBL’s dealership and negligently damaged the car. Repairs to the Audi cost RBL’s dealership about $3,122 and required many months to complete due to the time it took to obtain parts. The wholesale cost of the car had been $15,526, and the dealership normally earned a gross average profit of $889. For the months that the car was being repaired and could not be sold, RBL paid approximately $1,971 in interest to a bank. RBL had taken out the bank loan to purchase the Audi. RBL’s dealership was ultimately able to sell the Audi for only $13,500. Farmers admitted that its insured was at fault but believed that RBL was entitled to recover repair costs only. RBL countered that it would not be fully compensated by merely cost of repairs. Farmers sued RBL to resolve the matter. The trial court found that the compensable damages to RBL were limited to cost of repairs. RBL appealed.
Rule of Law
Issue
Holding and Reasoning (Hathaway, J.)
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