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AUTOBODYNEWS.COM
Vol. 9 / Issue 3 / May 2018
State Farm Responds to Claims of Influencing Non-OEM Auto Repair
Todd Tracy’s 10 Ways to Avoid a $42 Million Verdict
by Katherine Coig, glassBYTEs.com
Attorney Todd Tracy’s recent lawsuit against a dealership body shop marks the start of a profound shift for collision repairers. Below is his list of 10 Ways to Avoid a $42 Million Verdict, co-authored by Gene Bilobram, who wrote “The Pre and Post Scan Revolution” featured in Autobody News last spring.
A jury recently found Texas-based John Eagle Collision Center liable for injuries sustained by Matthew and Marcia Seebachan following a 2013 crash because a repair was not done according to OEM specifications, according to the verdict. Now, State Farm is in the spotlight for its alleged role in influencing that repair. The couple is suing for negligence and breach of warranty. The lawsuit stems from a non-OEM roof repair, which used an adhesive instead of being welded as Honda’s
specifications outlined. According to John Eagle’s director Boyce Willis, State Farm wouldn’t pay the shop unless the repair was done according to its specifications as opposed to Honda’s. “No insurance company should ever dictate to a collision repair center or body shop how to repair a vehicle. To do so is extremely negligent, and shows a wanton disregard for human life and the safety of others,” said Todd Tracy, attorney for the plaintiffs. “John Eagle did not repair the subject 2010 Honda Fit to Honda’s body repair specSee State Farm Responds, Page 14
NC Body Shop Owner Among Four Killed in Two-Car Crash on US-501 by Beth Lawrence, The Laurinburg Exchange
A Scotland County, NC, man and three others were killed in a two-car
Christopher George Lockerlear
crash late on March 29 near the Scotland-Robeson line. Christopher George Locklear, 45, of Pressley Lane perished in the head-on collision, according to North Carolina Highway Patrol Sgt. Phillip Collins. The passenger in Locklear’s car, Patrick Lee, 45, of Railroad Avenue in McColl, SC, was airlifted to McLeod Regional Medical Center in critical condition. The identities of the occupants in the first vehicle have See Two-Car Crash, Page 12
by Gene Bilobram and Todd Tracy
1) Always Follow OEM Repair Specifications Refer to vehicle-specific (year, make, model) and repair-specific OEM repair manual information on every repair. Follow up by seeking any OEM position statement, Technical Service Bulletin (TSB), recall or general procedure applicable to the OEM and its vehicles.
2) Always Follow I-CAR OEM repair procedures do not always exist in a particular vehicle repair situation. In those cases, published I-CAR best practices should be sought out and followed to assure an industry best practices repair. After OEM procedures, always follow I-CAR. 3) Remember Who Your Customer Is The vehicle owner and future owners will live with the consequences of the repairs you make. Keep the customer informed about the high standard of repairs the shop is striving to provide with any insurer resistance to same. It’s the shop’s duty to involve the customer rather than make unilateral decisions which can compromise repairs. The shop’s overriding duty is to provide the safest repair See 10 Ways to Avoid, Page 10
Greed Drove $23 Million Auto Insurance Fraud at Chiropractic Clinics in FL by Paula McMahon, Sun Sentinel
Even Andrew Rubinstein admitted he was motivated by greed when he got involved in an elaborate $23 million auto insurance fraud that operated for years in chiropractic clinics in South Florida. His desire for a more comfortable life was part of a circle of fraud that federal prosecutors said cost the rest of us—by pushing up the cost of insurance for millions of drivers. Rubinstein, who was part of a corrupt group of clinic owners, chiropractors and attorneys that operated mostly in Broward, Palm Beach and Miami-Dade counties, was sentenced March 21 to six years in federal prison. “He did it for greed. He did it because he wanted a better lifestyle. He did it for money,” prosecutor Jef-
frey Kaplan said. The crime ring raked in at least $23 million from 10 auto insurance companies in the seven years it operated, ending with a series of arrests in 2017.
Massive $23 million auto insurance fraud was an intricate operation. (l to r) Felix Filenger, 41 and Andrew Rubinstein, 48
The fraud involved ripping off auto insurance companies by illegally billing for Personal Injury Protection (PIP) insurance money under Florida’s no-fault law. See Insurance Fraud, Page 22
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