[Code of Federal Regulations]
[Title 32, Volume 5]
[Revised as of July 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 32CFR750.47]

[Page 405]
 
                       TITLE 32--NATIONAL DEFENSE
 
                   CHAPTER VI--DEPARTMENT OF THE NAVY
 
PART 750_GENERAL CLAIMS REGULATIONS--Table of Contents
 
                      Subpart C_Military Claims Act
 
Sec. 750.47  Measure of damages for property claims.

    Determine the measure of damages in property claims arising in the 
United States or its territories, commonwealth, or possessions under the 
law of the place where the incident occurred. Determine the measure of 
damages in property claims arising overseas under general principles of 
American tort law, stated as follows:
    (a) If the property has been or can be economically repaired, the 
measure of damages shall be the actual or estimated net cost of the 
repairs necessary to substantially restore the property to the condition 
that existed immediately prior to the incident. Damages shall not exceed 
the value of the property immediately prior to the incident less the 
value thereof immediately after the incident. To determine the actual or 
estimated net cost of repairs, the value of any salvaged parts or 
materials and the amount of any net appreciation in value effected 
through the repair shall be deducted from the actual or estimated gross 
cost of repairs. The amount of any net depreciation in the value of the 
property shall be added to such gross cost of repairs, if such 
adjustments are sufficiently substantial in amount to warrant 
consideration. Estimates of the cost of repairs shall be based upon the 
lower or lowest of two or more competitive bids, or upon statements or 
estimates by one or more competent and disinterested persons, preferably 
reputable dealers or officials familiar with the type of property 
damaged, lost, or destroyed.
    (b) If the property cannot be economically repaired, the measure of 
damages shall be the value of the property immediately prior to the 
incident less the value immediately after the incident. Estimates of 
value shall be made, if possible, by one or more competent and 
disinterested persons, preferably reputable dealers or officials 
familiar with the type of property damaged, lost, or destroyed.
    (c) Loss of use of damaged property which is economically repairable 
may, if claimed, be included as an additional element of damage to the 
extent of the reasonable expense actually incurred for appropriate 
substitute property, for such period reasonably necessary for repairs, 
as long as idle property of the claimant was not employed as a 
substitute. When substitute property is not obtainable, other competent 
evidence such as rental value, if not speculative or remote, may be 
considered. When substitute property is reasonably available but not 
obtained and used by the claimant, loss of use is normally not payable.