Case Information
- Case Number: 50-2014-CA-006677-XXXX-MB.
- Plaintiff: Amy E. Hart.
- Defendants: Melissa J. Rabino and Infiniti of the Palm Beaches Inc..
- Judge: David E. French.
Judgment Details
The court entered a judgment in favor of Amy Hart following a jury verdict regarding the defendant’s negligence, which resulted in property damage (Diminished Value of her Tesla). The total award of $46,618.76 consists of:
- Principal Sum: $30,000.00 awarded by the jury.
- Prejudgment Interest: $5,575.07 (calculated at 4.75% per annum from the date of loss on December 12, 2013).
- Taxable Costs: $11,043.69.
THE CASE
September 26, 2017 In the Circuit Court of the 15th Judicial Circuit and for Palm Beach County; State of Florida – Circuit Court Division Case# 502014CA00667. The Honorable David French presiding, Plaintiff Amy Hart v. Defendant Melissa J. Rabino. Plaintiff Attorneys Meredith Biggs, Esq. and Joe Curley, Esq. of The Gunster Law Firm, West Palm Beach, Florida. Defense Attorneys on behalf of the defendant and State Farm Insurance Company Edward Malavenda, Esq. and Richard Penalta, Esq. of Nicholas J. Ryan & Associates, Fort Lauderdale, Florida. Expert Witness for the Plaintiff Franklin Colletta of The St. Lucie Appraisal Company, Fort Pierce, Florida, Expert Witness for the Defendants Jeffrey Karpinski of Florida Inspection Associates, Inc. (FIA) of Largo, Florida who was to appear via teleconference. A videographer who was to facilitate Mr. Karpinski’s testimony stood outside the courtroom with projector and screen through both morning and afternoon sessions. At issue was both the Retail Value of a 2013 Tesla Motors Model S85 automobile and the Diminished Value of said vehicle as a result of a multi-vehicle accident on December 12, 2013. In a jury trial before The Honorable David French. The Plaintiff was seeking compensation of approximately $45,000.00 for the diminished value of her automobile subsequent to the accident. This was a jury trial in which the jury’s verdict found in favor of the plaintiff, Amy Hart, and awarded a judgement of approximately $46,618.76 and also directed State Farm Insurance Company to pay all of the plaintiff’s legal, appraisal and expert witness fees.
THE ST. LUCIE APPRAISAL COMPANY VALUATION APPRAISAL
On March 25, 2015, The St. Lucie Appraisal Company provided an Automobile Valuation Appraisal for the plaintiff’s 2013 Tesla Motors Model S85 which was damaged in a multi-car collision on December 12, 2013. At the time of the loss, the vehicle had 3,500 miles on the odometer. The appraised value pre-accident was $104,095.00 and stated as follows:
“This appraisal is for a 2013 Tesla Motors S85 4 Door Sedan in pristine condition, purchased new in September 2013 for $89,750.00. My valuation is based on the market for this particular vehicle three months later in December 2013 when the loss occurred. The Tesla S was fairly new in the market and high-end buyers couldn’t wait to get their hands on them. Phong Ly, CEO of http://iSeeCars.com: “Prices for used models may also be inflated, Ly said, by the relative scarcity of the Model S on the road. Tesla CEO Elon Musk has said “we really are production constrained, not demand constrained.” During the time between 2012 and early 2014, the supply of new and used Teslas could not meet demand. I have queried a number of independent high-end auto dealers regarding the used Tesla market from 2012 to early 2014. Their opinions on selling prices during that time span range from $10K to $27.5K over MSRP. The average of four dealer opinions places the value for a used 2013 Tesla Motors S85 with 3,500 miles in December 2013 at $14,375.00 over MSRP. This valuation was disputed by State Farm Insurance Company.
FLORIDA INSPECTION ASSOCIATES (FIA) AUTOMOBILE DIMINISHED VALUE REPORT AND DEPOSITION
On August 11, 2016, Jeffrey Karpinski of Florida Inspection Associates, Inc. (FIA) provided State Farm Insurance and Nicholas J. Ryan & Associates with an Automobile Diminished Value Report for the plaintiff’s 2013 Tesla Motors Model S85 as a result of the damages sustained from the accident. Structural damages were not noted in their report. Diminished Value methodology was similar to the formula-based Rule 17C which was discredited as inadequate by The Georgia Supreme Court. Their Diminished Value Report listed the pre-accident value at $89,970.00 Their Diminished Value as a result of the accident damage was 6.00% of that value which came to approximately $5,398.00. In his deposition Mr. Karpinsky stated that, with structural damage, he would add an addition 2.00% to the Diminished Value amount which would equal $7,197.60.
On September 21, 2017 Jeffrey Karpinsky of Florida Inspection Associates, Inc. (FIA) gave a deposition to plaintiff Attorney Biggs in which he was asked to list each civil or criminal case, administrative proceeding or other proceeding before any administrative agency or court in which said expert has given any testimony, either by deposition or in person. Mr. Karpinsky objected to this request and declined to answer. In his videotaped deposition, Mr. Karpinski is heard saying on numerous occasions that the quarter panel of the aluminum body Tesla might be repairable despite both the auto body estimate and State Farm’s own estimate of repairs indicating that a quarter panel replacement was required. He also said that structural damage is “subjective” despite Tesla Motors guidelines clearly stating that the quarter panels are part of the car’s structure. Mr. Karpinski’s original Diminished Value Report stated that there was no structural damage.
THE ST. LUCIE APPRAISAL COMPANY AUTOMOBILE DIMINISHED VALUE REPORT AND DEPOSITION
On September 24, 2017, Franklin Colletta of The St. Lucie Appraisal Company provided an Automobile Diminished Value Report for the plaintiff’s 2013 Tesla Motors Model S85 using a Diminished Value methodology of obtaining multiple dealer opinions to show the inherent loss in value, also known as Auto Diminished Value, as a result of the damages sustained from the accident. Structural damages were noted in their report. This third-party claim was made against the defendants Rabino and State Farm Insurance. St. Lucie’s Diminished Value Report listed the retail value at $104,095.00 but calculated the Diminished Value based on the vehicle’s trade-in value of $95,000.00. The Diminished Value as a result of the accident damage, according to the average of the six dealers queried, was 36.67% of trade-in value which came to $34,836.50.
On August 22, 2016 Franklin Colletta of The St. Lucie Appraisal Company gave a deposition to defendants Attorney Malavenda in which he stated upon being asked, that he had appeared numerous times as an expert witness. A list of previous trial appearances was on hand for his review. Neither the repairs to the plaintiff’s vehicle or Diminished Value were discussed at length as Mr. Colletta had only been hired to prepare a Valuation Appraisal as of that time.
THE TRIAL
On September 26, 2017 Franklin Colletta gave testimony in both morning and afternoon sessions. During questioning by Attorney Malavenda, Franklin Colletta testified as to the reliability of reports provided by The St. Lucie Appraisal Company to determine a vehicle’s pre-accident value and inherent Diminished Value. Structural damage to the Tesla was an important consideration in determining the Diminished Value amount. As the jury’s verdict indicated, the methodology used in their Automobile Diminished Value Report was unassailable. The jury awarded a judgement of $46,618.76 to the plaintiff and also directed State Farm Insurance Company to pay all of the plaintiff’s legal, appraisal and expert witness fees.
The expert testimony of Jeffrey Karpinski (FIA) was never introduced.