Diminution in Value Not Seen as Property Damage

 

In Goodstein v. Continental Cas. Co., 2007 WL 4225803 (9th Cir. 2007), the Court of Appeals held that an insured's claim for the difference between the appraised value of uncontaminated properties and the sale price of the properties in a contaminated state was not recoverable under a commercial general liability policy because the claim did not constitute “property damage” or “damages” that the “insured shall become legally obligated to pay” because of “property damage” under the policy and state law. The case involved the sale of two properties by appellant Goodstein, a receiver appointed by the county court to wind up the dissolved partnerships of the property owners.