Counsel debate Mueller and the distinction between stigma and diminished value

A central legal dispute at argument concerned the court’s interpretation of Mueller and whether stigma damages are distinct from diminished-value recovery. Petitioner's counsel said Mueller requires an insured to show a vehicle was not restored to pre-loss condition as a prerequisite for diminished-value recovery. "An insured must show that a vehicle was not restored to its pre loss condition due to the nature of the damages sustained," Paligo said.

Respondent counsel countered that Mueller and related precedent support class treatment where expert evidence shows that paint, body or structural repairs leave observable, lasting differences that affect market value, and he criticized prior trial-court judges’ inconsistent readings of the precedent. The panel aired questions about how the precedent should be applied in this factual record.