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U.S. House Committee Holds Hearings on Career and Technical Education Act On May 18 the U.S. House Commit- serve those seeking to enter the techtee on Education and the Workforce nical workforce. Witnesses included: held a hearing titled, “Helping Stu- Sen. Tim Kaine, D-Va. dents Succeed by Strengthening the Paul Tse, project manager, Shapiro & Duncan Inc. Carl D. Perkins Career and Jason Bates, manager, ToyTechnical Education Act.” ota Bodine Aluminum Inc. Reauthorized in 2006, Dr. Monty Sullivan, presithe Carl D. Perkins Act allodent, Louisiana Community cates federal grants to states and Technical College Sysfor distribution to secondary tem school districts and post-secThroughout the hearing, ondary institutions. The purSen. Tim Kaine, the witnesses and members pose of the hearing was to D-VA recounted personal examples examine the Carl D. Perkins Act and others like it to determine of the value of local career and techwhat reforms should be made to best See U.S. House Hearings, Page 21
Ray Fisher of ASA-MI Addresses Changes to Motor Vehicle Service Repair Act, Governor Vetos Bill
See MI Bill Veto , Page 20
P.O. BOX 1516, CARLSBAD, CA 92018
A controversial bill that would have restricted aftermarket parts vendors to sell only certain types of parts on newer vehicles to licensed repair facilities in Michigan was vetoed by Michigan Governor Rick Snyder in June. House Bill 4344 would have required body shops to use new or used OEM parts or certified aftermarket parts on vehicles during their original factory warranty period or five years, whichever is less, unless they received written permission from a customer to use non-certified parts. The 62-page
bill updated the 1974 Michigan Motor Vehicle Service(s) and Repair Act. “I am unable to sign this bill because it overreaches in the limitation of aftermarket parts negatively impacting consumers and creating the potential for negative consequences for Michigan’s automotive industry,” Snyder wrote in his veto letter. “As Michigan continues its comeback and continues to be a leader in promoting new technology in the automotive industry, it is imperative that we ensure all components of that industry can remain strong, including Michigan’s robust aftermarket parts
Change Service Requested
by Stacey Phillips
VOL. 7 ISSUE 5 JULY 2016
MS and IN Lawsuits Alleging Steering and Price Fixing by Insurers Ordered Closed by Judge by Stacey Phillips
A Florida judge has closed two related lawsuits brought forth by body shops in Mississippi and Indiana against insurers for alleged steering and price fixing. On May 27, Middle District Judge Gregory Presnell dismissed the state claims in Capitol Body Shop, et al, v. State Farm, et al, with prejudice, meaning they cannot be refiled. Two weeks later, on June 10, he made a similar ruling in Indiana Auto Body Association, et al v. State Farm, et al. Both cases are part of the multidistrict lawsuit that involves more than 500 shops across the country. The 24 lawsuits filed were eventually consolidated for pretrial purposes.
According to industry reports, collision repairers across the United States are watching with anticipation to find out the national implications these recent rulings may have. A similar judgment was made in 2015 when Judge Presnell dismissed all claims in Florida’s A&E Auto Body et al, v. 21st Century et al, with prejudice. All three cases can be appealed to the Eleventh Circuit Court by Eaves Law Firm, the lead attorneys on the case. The Jackson, MS, law firm could not be reached for comment when Autobody News went to press this month. The body shops have accused insurance companies of violating the Sherman Antitrust Act and state laws See MS and IN Lawsuits, Page 18
Tennessee Steering Lawsuit Against Progressive Insurance Dismissed by Stacey Phillips
A lawsuit filed by a Tennessee body shop against Progressive Hawaii Insurance Corporation for alleged “steering” and underpayment of claims has been dismissed. In 2011, Price’s Collision Centers sued the insurance company for tortious interference of business relationships and breach of contract. A court date had been set for this fall. The case was dismissed in April with prejudice, which means it cannot be refiled. There was no reason given for the ruling, and William Ramsey of Neal & Harwell, the lead attorney for the Plaintiff, declined to comment on the case. Progressive Insurance also declined to comment. Each party will pay their own attorney fees and other costs related to the case. Based in Brentwood, Williamson County, TN, Price’s Collision Centers was established in 2000 and currently operates nine full-service collision
center locations in Tennessee and Kentucky. Price’s Collision, owned by Bobby Price, originally filed the claim on behalf of two of its customers, Anne Crockett and Nicole Crosby. Both customers brought in their vehicles to be repaired following two separate accidents that occurred in June 2011. While repairing the vehicles, auto body technicians at Price’s identified additional repairs that were not on the original estimates written up by Progressive. The body shop requested that the supplemental repairs be approved. Despite repeated requests, the Plaintiff alleged that Progressive refused to pay for the charges, which were $693.01 for a 2007 Honda Accord and $927.04 for a 2010 Honda Civic LX. Crockett and Crosby both asked the body shop to file a claim on their behalf and the cases were eventually consolidated. Price’s sued for breach of contract, violations of the TenSee TN Lawsuit, Page 16
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