North Dakota

Diminished Value Overview

In North Dakota, diminished value is not recognized as a separate or recoverable element of damages after a vehicle has been repaired. North Dakota law presumes that the reasonable cost of repairs, together with loss of use, fully compensates a claimant for property damage. Diminished value may only be considered as an alternative measure of damages when repair is impossible or impracticable. As a result, traditional post repair diminished value claims are not permitted in North Dakota.

North Dakota Diminished Value Law

North Dakota does not recognize diminished value as a separately recoverable element of damages when a vehicle has been repaired. Under North Dakota law, when personal property is damaged but repairable, the injured party is generally limited to recovering the reasonable cost of repairs and loss of use. Recovery for post repair loss in market value is not permitted where repairs restore the property and the cost of repair has been paid.

North Dakota Century Code § 32-03-09.1

The statute provides that the presumed measure of damages for injury to property is the reasonable cost of repairs necessary to restore the property to its pre injury condition, along with the reasonable value of loss of use while repairs are completed. Only when restoration is impossible or impracticable does the measure of damages shift to the difference between the market value of the property immediately before and after the injury.