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Vol. 13 / Issue 4 / July 2022
Automakers’ Lawsuit Opposing Updates to Massachusetts’ Right to Repair Law Lingers On
New York Auto Regulation on the Ropes After Senate Vote
It has been over 18 months since Massachusetts voted to approve an update to the state’s ‘right to repair’ law, however, the changes have still not gone into effect. Why? Well, the automakers’ lawsuit that seeks to block the law is still making its way through the U.S. District Court. Alliance for Automotive Innovation v. Healy, Docket No. 1:20-cv-12090 D. Mass 2020). As we previously wrote, the ‘right to repair’ law allows consumers to take their car to any repair shop (not just the dealer) and have their mechanic plug a cord into the car’s onboard computer sys-
by Steve Bittenbender, The Center Square
tem to figure out what’s wrong with the car, or, alternatively, a consumer can buy a device and do this themselves. This has still not been implemented due to this pending lawsuit. However, now, in a recent brief filed by the Massachusetts Right to Repair Coalition, lawyers called for a “prompt decision” in this lawsuit and allege that automakers are using “delay tactics in order to avoid and prevent the implementation of ‘right to repair’ laws.” Specifically, the brief stated, “Undoubtedly, delays are an inevitaSee Automakers’ Lawsuit, Page 20
New-Vehicle Prices Flirt with Record High in May New-vehicle average transaction prices (ATPs) increased to $47,148 in May, according to new data released by Kelley Blue Book, a Cox Automotive company. Prices rose 1% ($472) month over month and remain elevated compared to one year ago, up 13.5% ($5,613) from May 2021. The average price paid for a new vehicle in the U.S. in May was the second-highest on record, behind only December 2021, when ATPs reached $47,202. New-vehicle inventory days’ supply stayed in the mid-30s in May—holding steady since
mid-January—while customer demand remained stable. These conditions enabled most dealers to continue selling inventory at or above the manufacturer’s suggested retail price (MSRP). The average price paid for
a new vehicle has been “over sticker” throughout 2022. In May, new vehicles from Honda, Land Rover and Mercedes-Benz See New-Vehicle Prices, Page 16
The New York State Senate on June 1 passed a bill that aims to do away with a nearly 45-year-old auto insurance regulation. S.6028 would do away with the requirement for insurance policyholders to get their vehicles photographed in order to obtain comprehensive and collision coverage. Policyholders also face a timeframe requirement to get the pictures taken or else they risked having their policy terminated. The bill, sponsored by Senate
Insurance Committee Chairman Neil Breslin (D-Albany),was supported by more than 20 business groups and a petition backing the legislation garnered more than 1,700 signatures. Since its compainion bill passed the Assembly in March, the bill now will go to Gov. Kathy Hochul for her consideration. In a letter to members, Scott Hobson, the assistant vice president of government relations for Big I New York, the group representing independent insurance agents, said it took “persistent pressure from See Senate Vote, Page 6
Insurers Too Late for Subrogation in Auto Parts Price-Fixing Case, Court Rules by Jim Sams, Insurance Journal
Insurers waited too long to intervene in anti-trust litigation that brought settlements requiring dozens of auto parts manufacturers to pay a total of $1.2 billion to resolve price-fixing allegations, a panel of the U.S. 6th Circuit Court of Appeal ruled June 1. In a published decision, the appellate panel affirmed a U.S. District Court ruling that denied a motion to intervene filed by Financial Recovery Services on behalf of eight insurers that sought “equitable subrogation” for the payments it made to insureds for the total loss of their vehicles. FRS did not seek to intervene in the litigation until long after settlement negotiations were concluded and final-approval hearings were held in 41 coordinated cases. The 6th Circuit panel said in its opinion that allowing intervention would require the court to revisit issues that were settled while FRS “watched from the sidelines.” “Allowing FRS to claim subro-
gation rights after settlement would uproot earlier efforts to define classes, expend considerable resources to amend allocation plans and increase costs associated with the claims-administration process, thereby reducing the amount of settlement proceeds available,” the panel said in an opinion written by Justice Karen Nelson Moore. Attorneys representing consumers in 2012 filed anti-trust lawsuits against dozens of auto manufacturers. The Department of Justice launched an investigation into price-fixing allegations, resulting in guilty pleas by 26 manufacturers that paid millions in fines. The civil lawsuits were consolidated into a single case assigned to the U.S. District Court for Eastern Michigan in Detroit. The court approved four separate settlement agreements between the plaintiffs and 73 of the defendants from 2016 through November 2020. FRS, a third-party administrator for auto insurers, did not get See Price-Fixing Case, Page 20
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