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NY and CA Off the List of Most Active States for New Dealerships, TX Adds Most Since 2016 Urban Science released statistics and insights from its 2017 mid-year Automotive Franchise Activity Report (FAR), indicating continued stability in the number of automotive dealerships in the United States. For the first time in about 10 years, New York state did not appear on Urban Science's most active list, or a ranking of states which have the most dealerships added each year. California routinely ranks high on the most active list, but also did not land a top spot for the second straight year. “An interesting observation is
California and New York, both typically on the most active list, are no longer included on the most active list, demonstrating a period of stability,” said Mitch Phillips, global director of data for Urban Science. States that experienced the highest net decrease in dealerships were Illinois and Washington, with a loss of five dealerships each last year. Texas added the most dealerships, gaining nine since 2016. Florida came in second with seven additional dealerships, followed by Pennsylvania at six and Missouri with five. See NY and CA Off the List, Page 5
State Farm is Dropped from Suit Alleging Coerced Repair Temporarily, 3M Will Be Included When Refiled
See State Farm Lawsuit, Page 36
P.O. BOX 1516, CARLSBAD, CA 92018
John Eagle Collision Center in Dallas, TX, and State Farm were sued in two separate cases for $1 million for allegedly using only adhesive to attach a new roof panel to a Honda Fit rather than welding it, as required by Honda OEM procedures. Matthew and Marcia Seebachan have dismissed their cases against State Farm Mutual Automobile Company, which alleged the insurer influenced an auto repair that didn’t meet OEM specifications in order to increase its bottom line. The lawsuit against State Farm was dismissed only 13 days after being filed.
According to the plaintiffs’ attorney the couple dismissed their lawsuit without prejudice, meaning refiling is likely. The plaintiffs’ law firm has confirmed to Autobody News that the action is procedural because including State Farm in the suit would delay the action against John Eagle Collision Center, which is scheduled to go to trial in early September. The plaintiffs also state that 3M, the manufacturer of the adhesive, will become part of the suit when refiled. The original lawsuits allege that the faulty repair caused the car to crush 33-year-old Matthew Seebachan and his
Change Service Requested
by Ed Attanasio
VOL. 8 ISSUE 6 SEPTEMBER 2017
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CIC Panel Focuses on Legislative Requirements Related to Use of Non-OEM Parts
Manufacturers. “Some insurers will suggest that the consumer consented to their State legislation on disclosure and consumer consent policy when they signed it involving the use of nonoriginally, and they should OEM parts has been proknow what’s in there. We don’t posed – or challenged – in a think insurers do a very good job of explaining to consumers number of states this year. Wayne Weikel of the Alliance of what’s in there. So we think Panelists on both sides of the Automobile Manu[consent to the use of the parts issue squared off at the Colfacturers said lision Industry Conference consumers deserve at the time of the claim] is very important.” (CIC) held in Chicago this disclosure and the At its best, Weikel said, the summer. opportunity to give “Consent is very impor- consent for parts at consent process lays out in tant,” said Wayne Weikel, the time of the claim writing a good explanation to the consumer of what his or her options senior director of state government afSee CIC Panel, Page 22 fairs for the Alliance of Automobile by John Yoswick
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Monmouth County Brothers Sentenced to Prison for Running an Insurance Fraud Ring that that Illegally Recruited Motor Vehicle Accident Victims as Patients On July 3 of this year NJ Attorney General Christopher S. Porrino and the Office of the Insurance Fraud Prosecutor (OIFP) announced that two brothers from Colts Neck, NJ, each have been sentenced to six-and-a-half-year prison terms for masterminding a multi-level insurance fraud ring in which they paid illegal “runners” to recruit car crash victims as patients for chiropractic facilities they controlled, and also collected kickbacks for referring those victims for medical and legal services provided by others involved in the scheme. Anhuar Bandy, 54, and his brother Karim Bandy, 55, must each pay a $100,000 fine and $50,000 reimbursement to insurance companies that
paid thousands of fraudulent claims over a four-year period. Karim Bandy was sentenced before Superior Court Judge Thomas M. Brown in Mercer County on Friday. Anhuar Bandy was sentenced before Judge Brown on June 2. Thirteen others members of the fraud ring—including a doctor, a lawyer, three licensed chiropractors, a paralegal and a licensed acupuncturist—have also been sentenced by Judge Brown in the scheme. “Anhuar and Karim Bandy were the ringleaders of a morally bankrupt band of criminals. They lured unsuspecting accident victims into their See Insurance Fraud Ring, Page 3
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