Royal Capital Development, LLC v. Maryland Casualty Co.
2011 U.S. App. LEXIS 20137
| 11th Cir. | 2011Background
- Royal Capital owns The Capital Building in Buckhead, Atlanta, insured by Maryland Casualty since 2003.
- In early 2008 adjacent construction caused physical damage to the building; Royal Capital claimed both repair costs and diminution in value.
- Maryland Casualty paid $1,132,072 for repairs but refused to compensate for diminution in value.
- The district court granted summary judgment for Maryland Casualty, concluding diminution in value was not covered.
- The Eleventh Circuit certified to the Georgia Supreme Court the unsettled question whether Mabry extends to commercial-building insurance contracts.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Mabry extends diminution-valued damages to buildings. | Royal Capital—Mabry should apply to buildings; policy permits loss value and repair costs. | Maryland Casualty—Mabry does not apply; policy language restricts to either value or repair; no diminution | Certification appropriate; unsettled state-law issue; Georgia Supreme Court should decide |
Key Cases Cited
- State Farm Mut. Auto. Ins. Co. v. Mabry, 274 Ga. 498 (2001) (diminution in value available under auto policies involving direct physical loss)
- Dependable Ins. Co. v. Gibbs, 218 Ga. 305 (1962) (earlier rule linking damage and loss to value)
- State Farm Mut. Auto. Ins. Co. v. Smith, 119 Ga. App. 447 (1969) (auto policy diminution in value recognized)
- Simmons v. State Farm Mut. Auto. Ins. Co., 111 Ga. App. 738 (1965) (auto policy damages construed with loss and repair)
- U.S. Fid. & Guar. Co. v. Corbett, 35 Ga. App. 606 (1926) (early Georgia lead on insurance contract interpretation)
- Columbia Props., Inc. v. Vogue Cleaners, Inc., 77 F.3d 384 (11th Cir.1996) (certification and state-law questions encouraged where unsettled)
- Bonner v. City of Prichard, 661 F.2d 1206 (11th Cir.1981) (en banc binding Fifth Circuit pre-1981 decisions)
- Blue Cross & Blue Shield of Ala., Inc. v. Nielsen, 116 F.3d 1406 (11th Cir.1997) (certification of questions of law used)