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Threat of Lawsuit Leads to Postponement of Latest CIC Parts Presentation by John Yoswick Special to Autobody News
Just hours before industry trainer Toby Chess was to make another presentation about non-OEM bumper and structural parts at the Collision Industry Conference (CIC) in Atlanta on April 15, Chess said he was threatened with a lawsuit if he did so. He declined to reveal who threatened the legal action but said, because he had not had a chance to consult with an attorney, he chose to forego making his presentation at the meeting. In presentations at the previous two CIC meetings in November and January, Chess showed potential problems with a number of non-OEM bumper parts, including apparent significant differences in the material and structure of the parts. That has
led at least four insurers to pull back from the use of such parts; it has also led parts suppliers to develop improved tracking and recall programs for the parts, and to the launch of several testing and certification programs for such parts. Chess was clearly frustrated by the threat of legal action against him, saying he never portrayed the demonstrations as scientific research but merely as a way to “bring light” to a potential problem. “I was asked last month why I did this,” Chess said. “I said that I don’t work for insurance companies, I don’t work for parts companies, I don’t work for body shops. I work for the consumer. I’m a trainer. I teach. So I have no vested stake in this. I thought it was necessary to say these things. I think we’ve demonstrated to the See Threat of Lawsuit, Page 8
SCRS Forum Brings State Shop Associations Together to Discuss Efforts and Share Ideas by John Yoswick Special to Autobody News
Collision repair associations leaders from around the country met in Secaucus, New Jersey, in March to share ideas and discuss state legislative or regulatory successes and efforts. The 2010 East Coast Resolution Forum, an event sponsored by the Society of Collision Repair Specialists (SCRS) and the Alliance of Janet Chaney
Automotive Service Providers (AASP) of New Jersey, was held in conjunction with AASP-New Jersey’s NORTHEAST 2010 trade show. Here’s a round-up of some of the news and discussion from the meeting: Iowa: Janet Chaney, of the Iowa Collision Repair Association, reported on the progress of a proposed state law the group supports that would in essence allow Iowa shops to transfer the expense of sales tax on paint materials they purchase to insurers or customers. Chaney said currently shops pay the sales tax on such purchases but are not reimbursed for it by insurers.
See SCRS Forum, Page 6
VOL. 1 ISSUE 3 MAY 2010
State Farm Prevails in Gunder Slander Suit State Farm won a summary judgement against Ray Gunder (see Autobody News, April edition) on March 26. The U.S. District judge, Steven D. Merryday, ruled that although State Farm may have made defamatory statements about Gunder’s Auto Center of Lakeland, Fla., the shop failed to prove that the insurer’s primary motive in making such statements was to harm the shop rather than further its own cause. Gunder had alleged that State Farm “intentionally and unjustifiably interfered with [Gunder’s] relationships with its customers” by falsely stating to insureds that the shop overcharged for repairs and completed repairs in an untimely, inefficient and substandard manner. The judge noted that Gunder’s Auto Center was terminated from State Farm’s DRP program in 2004, and case records also showed that Gunder’s objected to State
Farm’s method of compensating repair shops for paint and materials. To recover for slander, the plaintiff must show 1) that the defendant published a false statement; 2) about the plaintiff; 3) to a third-party and 4) the plaintiff suffered damages as a result of the publication of the statement. State Farm argued that even if State Farm agents uttered false statements about the plaintiff, the statements are privileged. “State Farm was acting as an insurer and was communicating with the party seeking benefits under the insurance contract about an issue in which they have a common interest, the prompt and full repayment of repairs,” the court decision stated. Although the judge agreed that the communications between State Farm and claimants were privileged, he noted that they could still be considered slanderous if See Summary Judgement, Page 4
CONTENT HIGHLIGHTS
• State Farm Prevails in Ray Gunder Case
• First Responders Get Vehicle Extrication Training in Georgia • The Mayor, the Blogger, and the Body Shop • Florida CEOs Urge ‘Cost Driver” Reforms • Insurers and Shops Don’t Always Speak Same Language
Toyota Fined, Awaits Class Action
Still A Mustang, in name only, part 2
Gonzo’s Toolbox: “Slick Talkin’ Mechanic”
See Page 19
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