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VOL. 5 ISSUE 10 JULY 2016
Tennessee Steering Lawsuit Against Progressive Insurance Dismissed
MS and IN Lawsuits Alleging Steering and Price Fixing by Insurers Ordered Closed by Judge
A lawsuit filed by a Tennessee body shop against Progressive Hawaii Insurance Corporation for alleged “steering” and underpayment of claims has been dismissed. In 2011, Price’s Collision Centers sued the insurance company for tortious interference of business relationships and breach of contract. A court date had been set for this fall. The case was dismissed in April with prejudice, which means it cannot be refiled. There was no reason given for the ruling, and William Ramsey of Neal & Harwell, the lead attorney for
A Florida judge has closed two related lawsuits brought forth by body shops in Mississippi and Indiana against insurers for alleged steering and price fixing. On May 27, Middle District Judge Gregory Presnell dismissed the state claims in Capitol Body Shop, et al, v. State Farm, et al, with prejudice, meaning they cannot be refiled. Two weeks later, on June 10, he made a similar ruling in Indiana Auto Body Association, et al v. State Farm, et al. Both cases are part of the multidistrict lawsuit that involves more than 500 shops across the country. The 24 lawsuits filed were eventually consolidated for pretrial purposes.
by Stacey Phillips
the Plaintiff, declined to comment on the case. Progressive Insurance also declined to comment. Each party will pay their own attorney fees and other costs related to the case. Based in Brentwood, Williamson County, TN, Price’s Collision Centers was established in 2000 and currently operates nine full-service collision center locations in Tennessee and Kentucky. Price’s Collision, owned by Bobby Price, originally filed the claim on behalf of two of its customers, Anne Crockett and Nicole Crosby. Both cusSee TN Lawsuit, Page 50
OEM Training Details for NACE | CARS Released
plimentary basis with the purchase of a conference or expo pass:
FIAT CHRYSLER AUTOMOBILES: Introducing the allnew 2017 Chrysler Pacifica—This class will provide you with information relative to the technical specifications, metal strengths, and repair procedures. John Hughes, MOPAR Collision Repair Responsible Service Engineering, TSO, Fiat Chrysler Automobiles.
FORD MOTOR COMPANY: Ford FSee OEM Training, Page 3
Change Service Requested
P.O. BOX 1516, CARLSBAD, CA 92018
NACE | CARS has announced the release of details for this year’s OEM programming. NACE | CARS 2016, taking place in Anaheim, CA August 9-13, will feature record involvement and expanded training from companies such as Audi, BMW, FCA, Ford, GM, Honda, Hyundai, Toyota, and more, who will provide information on their latest vehicles, materials and technology, how to address specific repairs, and on becoming a certified repair shop. Here is an overview of the training, which will be offered on a com-
by Stacey Phillips
According to industry reports, collision repairers across the United States are watching with anticipation to find out the national implications these recent rulings may have. A similar judgment was made in 2015 when Judge Presnell dismissed all claims in Florida’s A&E Auto Body et al, v. 21st Century et al, with prejudice. All three cases can be appealed to the Eleventh Circuit Court by Eaves Law Firm, the lead attorneys on the case. The Jackson, MS, law firm could not be reached for comment when Autobody News went to press this month. The body shops have accused insurance companies of violating the Sherman Antitrust Act and state laws See MS and IN Lawsuits, Page 36
Ray Fisher of ASA-MI Addresses Changes to Motor Vehicle Service Repair Act, Governor Vetos Bill by Stacey Phillips
A controversial bill that would have restricted aftermarket parts vendors to sell only certain types of parts on newer vehicles to licensed repair facilities in Michigan was vetoed by Michigan Governor Rick Snyder in June. House Bill 4344 would have required body shops to use new or used OEM parts or certified aftermarket parts on vehicles during their original factory warranty period or five years, whichever is less, unless they received written permission from a customer to use non-certified parts. The 62-page bill updated the 1974 Michigan Motor Vehicle Service(s) and Repair Act. “I am unable to sign this bill because it overreaches in the limitation of aftermarket parts negatively impacting consumers and creating the potential for negative consequences for Michigan’s automotive industry,”
Snyder wrote in his veto letter. “As Michigan continues its comeback and continues to be a leader in promoting new technology in the automotive industry, it is imperative that we ensure all components of that industry can remain strong, including Michigan’s robust aftermarket parts industry. I am concerned about HB 4344’s effect on market competition for replacement parts on motor vehicles.” House Bill 4344 was first introduced March 12, 2015 by Rep. Peter Pettalia of Presque Isle, who co-owns an automotive mechanical repair facility in Alpena, MI. On February 10, 2016, the bill passed in the House 84-22 in favor of the amended bill and was sent to the Senate. The bill was unanimously voted out of the Senate subcommittee with the understanding that modifications to the bill were necessary for See MI Bill Veto, Page 24
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