Diminution

Aircraft Damage * Machinery Damage * Equipment Damage * Breach of Contract * Antitrust Business Interruption * Eminent Domain * Lender Liability

Damage and the affect on value

Determining the diminution to value can be a complex process.. The subject of damage is always highly controversial. The main issue is how a damage or loss event will affect the current and future values of aircraft, equipment or business operations.

There are a variety of factors that need to be addressed in an effort to accurately address the diminution factors, which include:

• Type of damage or loss
• Magnitude of damage or loss
• Structural damage
• Damage inspection requirements
• Method of repair
• Regulatory compliance
• Repair center or service
• Time since incident
• Maintenance since incident
• Sympathetic repairs
• Amount of in-service time
• Previous incidents
• State of the market

Diminution Reports

There are multiple report formats, depending on the scope of the project. Client submitted records can be analyzed or a full audit and records review may be accomplished. A fair market value assessment can be employed in conjunction with the diminution value. Diminution Reports are typically required by owners, operators and lawyers to discover the financial implications following a damage or loss event. These reports detail the incident, the repair methods employed or proposed, and the resulting diminution value after all factors are analyzed.

Expert Witness

SAI’s experience has proven very successful when engaged in consultation, deposition and expert testimony involving diminution court proceedings. Visit our Expert Witness page for more information about this service.

For a free consultation, call 815-786-2826. Also, you can drop a note via web form from our CONTACT US page.