Farmers Insurance Co. v. Rbl Investment Co.

675 P.2d 1381 (1983)

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Nature of the Case

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Facts

On October 30, 1980, a new, unsold, 1980 Audi, available for sale from D's new car dealership, while being taken for a test drive, was involved in a collision with a vehicle insured by P. P admitted that the accident was the fault of its insured. Repairs cost $3,495.70. P offered to pay the repair costs, but D refused the offer on the basis that it would not fully compensate the loss. P erroneously issued its draft to D for the sum of $9,460, which D accepted and cashed. P asked for a refund of all funds in excess of its original $3,495.70 offer, and D counter offered to return the amount in excess of the loss it claimed. P refused and sued for return of the funds. The trial court's findings of facts include: That the dealer's wholesale factory cost of the car is $15,526.00. That the amount of $3,122.63 was spent to fix the car after it was damaged in the accident. That the dealership spent $1,971.91 in interest to the Valley National Bank paid on this particular car during the time it was in the shop being repaired. That also, added to these numbers are normal, average gross profit in the sum of $889.00, and from that total they are deducting the amount of money for which the car was sold, $13,500.00, leaving a difference of $8,009.54 due from P.' The trial court held that the compensable damages were limited to the cost of repair. D appealed.