Section 2 Diminution of Value—A Fair Market Value Measure

• Library: Damages 2012

The general rule in Missouri for measuring damage to real property—in the absence of a specific contractual provision dealing with damages—is that the injured party is entitled to the difference between the real estate’s fair market value immediately before and its fair market value immediately after the event that causes the damage. See:

Misch v. C.B. Contracting Co., 394 S.W.2d 98, 101 (Mo. App. S.D. 1965)

Tull v. Hous. Auth. of City of Columbia, 691 S.W.2d 940, 943 (Mo. App. W.D. 1985)

Larabee v. City of Kansas City, 697 S.W.2d 177, 181 (Mo. App. W.D. 1985)

The courts usually refer to this rule as the diminution-of-value test. DeArmon v. City of St. Louis, 525 S.W.2d 795, 800 (Mo. App. E.D. 1975); Tull, 691 S.W.2d at 942.

It has been held that this measure of damages is the same whether...