Can Labor Be Depreciated In Actual Cash Value Calculations?
By Tracey JordanDecember 6, 2017, 2:26 PM EST
Law360, New York (December 6, 2017, 2:26 PM EST) -- Courts continue to split on the issue of whether labor can be depreciated when calculating actual cash value (ACV) payments under property policies. The split occurs regardless of whether the policies contain a definition of ACV or lack such a definition. Accordingly, insurance companies should be aware of the jurisdiction in which the loss occurs and whether recent case law has definitively determined whether labor can be depreciated.
The seminal case upon which many courts use as a guide when deciding the issue of labor depreciation...