Sponsor says bill will codify diminished-value claims and clarify loss-of-use and subrogation rules

Senate Bill 131 received sponsor testimony in a first hearing before the Senate Judiciary Committee. Senator Contreraso told the committee the bill ‘‘codifies existing common law regarding property damage’’ and clarifies compensatory damages for diminished value and loss of use for motor vehicles.

Contreraso said that under current case law a motorist who proves the value of a repaired car is less than its pre-accident value may receive the difference as diminished value. He described appellate inconsistency and said SB131 would “clear up the muddy water and allow for there to be a very clear opportunity for the courts” to apply compensatory damages consistently.

The sponsor said the bill also addresses loss-of-use claims and subrogation issues so that claimants and insurers know how to calculate compensation and how subrogation between insurers should proceed.

The sponsor applied the bill to a common example: a not-at-fault motorist whose vehicle is repaired and appears normal but suffers reduced resale value. ‘‘When you go in there, there would be a disparity on what the vehicle would have been before the accident, and then after the accident,’’ Contreraso said, characterizing the bill as intended to make injured motorists whole.

There were no committee amendments or votes recorded at the hearing, and the committee noted the testimony as the first hearing on SB131.