In Gonzales v. Farmers Ins. Co. of Oregon, 196 P.3d 1 (Or. 2008), the insured, whose truck was damaged in a collision, sued his motor vehicle insurer, asserting claims for breach of contract, breach of implied duty of good faith and fair dealing, and unjust enrichment.

The defendant insurer had paid for repairs to the vehicle, but the repairs did not restore the vehicle to its pre-accident condition. The defendants contended that they were responsible for only the cost of the repairs. Defendants argued the policy obligated them only to repair the plaintiff's vehicle, as the plain and ordinary meaning of the word "repair" in the policy did not incorporate a duty to pay diminished value.

The plaintiff insured responded that the plain meaning of "repair" encompassed restoration of the vehicle's preloss physical condition and, if that were not possible, payment for diminished value. The trial court agreed with the defendants and granted the defendants' motion for summary judgment.