The Court of Special Appeals of Maryland reversed and remanded the decision of a lower court and determined diminution of value is a compensable part of a loss. The case is Fred Frederick Motors, Inc. v. Krause, 277 A.2d 464 (Md. Ct. Spec. App. 1971). 

William E. Krause was driving a tractor-trailer and accidentally drove into a parked vehicle, which collided into three other vehicles. All four vehicles were owned by Fred Frederick Motors, Inc., an auto dealer. Three of the vehicles were new and held for sale, and the other was used. The repairs to the vehicles were paid for a total of $2182.02, but the dealer argued they were entitled to diminution of market value of the vehicles; although the vehicles had been repaired, they had still been involved in an accident. However, the trial court ruled that the limit of recovery was the cost of repairs, and that any loss of profits was not shown or proven. 

The Court of Special Appeals noted that a precedent set by Taylor v. King, 213 A.2d 504 (Md. 1965) was that repairs restore a vehicle to substantially "the same condition" that it was in before the damage occurred. The Court opined that since "the same condition" was not defined, there were two possible definitions. One was that the condition of the vehicle referred only to the physical appearance and mechanical function of the vehicle, and the other was that the condition referred to the market value of the vehicle.