Legal Definitions - highest proved value

The term "highest proved value" refers to the maximum monetary worth of an asset or property that can be established and supported by credible evidence in a legal proceeding. This concept is often applied when determining the amount of compensation or damages owed to a party who has suffered a loss, particularly when the value of the item in question might have fluctuated, increased, or is subject to dispute. The goal is often to ensure the injured party is fully compensated for their loss based on the most favorable valuation that can be legally demonstrated.

Here are some examples illustrating this concept:

• Stolen Rare Coin Collection

  Imagine a collector whose rare coin collection, acquired over decades, is stolen. The market value of individual coins can fluctuate significantly based on rarity, condition, and demand. In a lawsuit seeking compensation for the theft, the collector would present evidence (e.g., expert appraisals, auction records, recent sales data for similar coins) to demonstrate the highest possible market value the collection held at or around the time of the theft. If a particular coin's value surged just before the theft, and this can be proven, that higher value would be sought as the "highest proved value" for that coin, contributing to the overall compensation.

• Damaged Custom-Built Software

  Consider a software development company that creates a highly specialized, custom-built software application for a client. Due to a server malfunction caused by a third-party vendor, the completed software is corrupted and rendered unusable before delivery. To determine the damages owed by the vendor, the client would seek the "highest proved value" of the lost software. This might include not only the development costs but also the projected market value of the unique software, its potential licensing revenue, or the cost of recreating it, especially if its value increased due to market demand or further enhancements made just before the corruption. The client would present evidence like development contracts, expert testimony on market value, and internal cost analyses to support the highest possible valuation.

• Eminent Domain for Commercial Property

  A city exercises eminent domain to acquire a commercial property for a new public park, and the property owner believes the city's initial offer is too low. In negotiations or a legal challenge, the property owner would aim to establish the "highest proved value" for their land and buildings. This might involve presenting multiple appraisals, evidence of recent sales of comparable properties in the area (especially those with higher values), potential future development value, or income-generating capacity of the business operating on the property. The owner would seek to prove the maximum fair market value that the property could command, even if it's higher than the city's initial assessment, to ensure just compensation.