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AUTOBODYNEWS.COM
Vol. 7 / Issue 8 / May 2018
State Farm Responds to Claims of Influencing Non-OEM Auto Repair
MSO Drops Use of PartsTrader, Remains on State Farm’s ‘Select Service’ Program
by Katherine Coig, glassBYTEs.com
by John Yoswick
A jury recently found Texas-based John Eagle Collision Center liable for injuries sustained by Matthew and Marcia Seebachan following a 2013 crash because a repair was not done according to OEM specifications, according to the verdict. Now, State Farm is in the spotlight for its alleged role in influencing that repair. The couple is suing for negligence and breach of warranty. The lawsuit stems from a non-OEM roof repair, which used an adhesive instead of being welded as Honda’s
specifications outlined. According to John Eagle’s director Boyce Willis, State Farm wouldn’t pay the shop unless the repair was done according to its specifications as opposed to Honda’s. “No insurance company should ever dictate to a collision repair center or body shop how to repair a vehicle. To do so is extremely negligent, and shows a wanton disregard for human life and the safety of others,” said Todd Tracy, attorney for the plaintiffs. “John Eagle did not repair the subject 2010 Honda Fit to Honda’s body repair specSee State Farm Responds, Page 21
7 MI Police Officers Charged in Fraudulent Auto Inspection Cases, Worked with Statewide Dealers by Julie Mack, MLive.com
Seven current and former Michigan police officers—including three people from the same family—are facing criminal charges for failing to conduct proper inspections of rebuilt salvage vehicles, according to the Michigan attorney general’s office. They are accused of signing Secretary of State documents certifying inspections that, in reality, didn’t happen, based on an investigation by the FBI Detroit-Area Public Corruption Task Force. See Officers Charged, Page 28
State Farm is allowing Caliber Collision centers participating in the “Select Service” program to remain on the program without using PartsTrader for State Farm claims. Caliber’s corporate office declined to comment on the change, but sources have told CRASH Network that Caliber CEO Steve Grimshaw announced at a company gathering in February that Caliber was curtailing its use of PartsTrader. “We’re now using PartsTrader only for The Hartford,” a source at a Caliber location in North Carolina confirmed. “I’m not sure if it’s a pilot for [State Farm] dropping PartsTrader, or what.” It is unclear whether the change was initiated by State Farm or Caliber. One source within Caliber said
that he expects the company’s use of PartsTrader for The Hartford to end in the near future as well. An estimator at a Caliber location in Georgia said he was happy with the change. “You still have to do your due diligence in searching for alternative parts [for State Farm claims],” he said. “But this saves us a lot of time. I’m not a PartsTrader fan myself. They say there’s some of those out there—PartsTrader fans—but I don’t know any.” Caliber locations in at least three other states also confirmed they are no longer using PartsTrader for State Farm claims, yet remain on the Select Service program. A State Farm spokeswoman said the company considers its agreements with repair facilities to be “confidential and therefore we will not be providing any comment.”
Todd Tracy’s 10 Ways to Avoid a $42 Million Verdict by Gene Bilobram and Todd Tracy
(from top left) Robert Greene, John Greene, Tim Greene, Kevin Reif, Greg Bumgardner Credit: AG’s office
Attorney Todd Tracy’s recent lawsuit against a dealership body shop marks the start of a profound shift for collision repairers. Below is his list of 10 Ways to Avoid a $42 Million Verdict, co-authored by Gene Bilobram, who wrote “The Pre and Post Scan Revolution” featured in Autobody News last spring. 1) Always Follow OEM Repair Specifications Refer to vehicle-specific (year, make, model) and repair-specific OEM repair manual information on every repair. Follow up by seeking any OEM position statement, Technical Service Bulletin (TSB), recall or general procedure applicable to the OEM and its vehicles.
2) Always Follow I-CAR OEM repair procedures do not always exist in a particular vehicle repair situation. In those cases, published I-CAR best practices should be sought out and followed to assure an industry best practices repair. After OEM procedures, always follow I-CAR. 3) Remember Who Your Customer Is The vehicle owner and future owners will live with the consequences of the repairs you make. Keep the customer informed about the high standard of repairs the shop is striving to provide with any insurer resistance to same. It’s the shop’s duty to involve the customer rather than make unilateral decisions which can compromise repairs. The shop’s overriding duty is to provide the safest repair available. See 10 Ways to Avoid, Page 27
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