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Alleged ‘Price Fixing’ by State Farm and Progressive Prompt New Filings in MDL by Stacey Phillips, Assistant Editor
In light of new evidence in the multidistrict lawsuit, on March 2 Eaves Law Firm filed a motion to reconsider the dismissal of the Mississippi antitrust complaint by Judge Gregory Presnell. Allison Fry of Eaves Law Firm pointed out that at the time the amended complaint was filed a year ago, they did not have access to the information they do now. This includes two statements, one from a State Farm representative and one from a Progressive representative where Fry said they admit to price fixing.
VOL. 7 ISSUE 2 APRIL 2016
“We have direct admissions of price fixing and other illegal acts,” said Fry, the litigation director and designated plaintiffs’ liaison counsel at Eaves Law Firm. On February 22 of this year, the trial court issued an order dismissing the plaintiffs’ claims for price fixing and boycotting under the Sherman Antitrust Act with prejudice, which means they cannot be refiled. Fry explained there are very limited grounds in which a court can reconsider an order. These include (1) an intervening change in controlling See Alleged ‘Price Fixing’, Page 24
VA Photo-Appraisal Bill Passes with WMABA’s Input and Suggested Amendments, Update on PA Bill
See VA Photo Bill, Page 17
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In January, VA Senate Bill 193 was presented to allow photos of collision damage to be used during the appraisal process, creating a stir among industry advocates who feared its passage could pose potential risks to consumers and collision repair professionals in VA. The Washington Metropolitan Auto Body Association (WMABA) quickly went to work to negotiate a compromise, and according to WMABA’s Executive Director Jordan Hendler, “The bill passed with our suggested amendments which was great.” The original wording in VA Sen-
ate Bill 193 did not seek to remove the requirement for vehicle appraisals to be based on physical inspections, but it would have permitted an initial appraisal based on photos to be used as the final appraisal. This provision caused Hendler and others to fear that consumers would cash out a claim without a physical inspection which could reduce the value of their vehicles since over 90% of VA estimates require a supplement. Because WMABA also saw potential benefits for consumers and shop owners from the proposed legislation, Hendler focused on refining the lan-
Change Service Requested
by Chasidy Rae Sisk
See SAR Conference, Page 10
NC Budget: More Sales Taxes in 2016, Income Tax Cuts in 2017 When the new North Carolina state budget was signed into law in September 2015, Colin Campbell wrote the following article for newsobserver.com, explaining the changes that would ensue on March 1, 2016: The new state budget signed into law September 18, 2015 includes about $400 million in income tax cuts, which will be offset by new sales taxes on repair, installation and maintenance services. Whether this year’s budget will save you money or tax you more depends on how much you make, and how much money you spend on the newly taxable services. The income tax cuts are relatively modest for low-income taxpayers: About $50 or less for households with less than $30,000 a year in income. But
because those families owe about $500 or less in state taxes, the cut amounts to about 10 percent of their tax burden, according to projections from the legislature’s nonpartisan research staff. Taxpayers receiving a $50 cut won’t benefit from the lower rate if they spend more than $750 on repair, maintenance or installation fees during that calendar year. The 6.75 percent sales tax rate in many counties will increase the cost of a $750 repair to $800. “I’m just a little concerned about expanding the sales tax, especially down in rural areas,” said Rep. Ken Waddell, a Columbus County Democrat who voted for the budget despite his concerns. “It’s going to cause a lot of heartburn when they don’t have a lot of money to spend in the first place.” See More Sales Taxes, Page 30
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