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VT Auto Shop Owner Scores Victory in Campaign Against Short-Pay by Insurers by Alan J. Keays, VTDigger.org
The Vermont Supreme Court has sided with a body shop in its latest legal challenge to a national insurance company over claims the firm failed to pay enough to cover needed repairs to vehicles that had been in collisions. The case has been working its way through the state’s legal system for about four years, starting in 2015 when Parker’s Classic Auto Works of Rutland brought suit against Nationwide Mutual Insurance Co., which is based in Ohio.
Mike Parker, the repair shop’s owner, said Monday he recently got a call from his attorney, Robert McClallen of Rutland, letting him know of the high court’s ruling. “I was like finally, ‘Hallelujah,’” Parker said. The suit against Nationwide was brought by Parker’s on behalf of consumers in instances where the insurer refused to pay the full amount of the repairs the shop made to vehicles. It’s a practice known as short-pay. The Nationwide lawsuit is part of an ongoing campaign by Parker’s See Short-Pay By Insurers, Page 19
SCRS Event Discussion on Insurance Regulation, Workforce Development by John Yoswick
Body shop associations and automakers increased efforts this year to get state legislation that would mandate
the use of OEM repair procedures for collision repair claims. Since these efforts, insurance regulators in some
states have shared written statements relative to any such obligation on insurers. Insurance regulatory agencies in about half of all states have responded to a letter the Society of Collision Repair Specialists (SCRS) sent out last year asking, among other things, if anything in their state “holds insurers and insurance policies sold in your state accountable to recognize manufacturer documented procedures as a basis for settling claims.” During a SCRS event earlier this year, the association’s Aaron SchuSee SCRS Event Discussion, Page 30
AUTOBODYNEWS.COM
Vol. 10 / Issue 6 / August 2019
GEICO’s Florida Fraud Case May Get a New Date by Emmariah Holcomb, glassBYTEs.com
GEICO’s Florida lawsuit against Shazam Auto Glass, LLC, and its owner, Sean Martineau, might have a new date in court. On Monday, June 24, Martineau and his company, requested an extension to respond to GEICO’s allegations against them. GEICO alleges Shazam and Martineau are responsible for a “fraudulent scheme” that included falsifying windshield replacement services totaling more than $340,000. GEICO is seeking to recover financial damages under the civil racketeer influenced and corrupt organizations act (RICO) statutes. The defendants (Martineau and Shazam) stated they were served with the insurance company’s complaint earlier this month, but according to the newly filed court document, Martineau is requesting an additional 21 days to file a response. “The issues raised in the complaint are complex and numerous. Given the extensive allegations of the complaint and the short period of time remaining before [the] defendants’ answer or response is due pursuant to Fed.R.Civ.P. 12, defendants’
counsel requires additional time to parse the extensive allegations with respect to each defendant, to formulate a defense strategy, to explore potential counterclaims, and to draft a comprehensive response,” a portion of the court document reads. The defendants are requesting the date be pushed back to July 19, 2019, to allow enough time for its legal counsel to gather enough evidence to respond to the claims of falsified windshield replacement services for several years. Currently, GEICO still claims Shazam at no point in time kept automotive glass, had auto glass repair or replacement tools, did not maintain any vehicles and did not perform any physical work on a customer’s vehicle. This is also a claim that the defendants mentioned would be addressed in its response. GEICO aims to recover its financial damages which total more than $340,000 from the defendants for their alleged fraudulent scheme. Meanwhile, the court has yet to approve the proposed response extension date of July 19, 2019. We thank glassBYTEs.com for reprint permission.
Dr. Ricki Garrett’s Focus on Education & Training Helps MSCRA Become Industry Leader
sippi Nurses Association. She created and managed the first association for Two years ago, the Mississippi Col- nurse practitioners in Mississippi— lision Repair Association (MSCRA) The Mississippi Association of Nurse asked Dr. Ricki Garrett, Practitioners (MANP). Ph.D., to assume the role of In addition, Garrett owns executive director so the an association management current director, John Morfirm, Ricki R. Garrett, LLC gan Hughes, could focus on that manages The Missislobbying efforts for the assippi Speech-Languagesociation. Garrett welcomed Hearing Association and the opportunity. consults for other associDr. Ricki Garrett, “My focus is to help the ations. executive director of the Mississippi association become an outPrior to her association Collision Repair standing organization and a management career, Dr. Association (MSCRA). leader in the profession,” said Garrett served a 12-year gubernatorial appointment to the Dr. Garrett. Previously, Dr. Garrett served as Board of Trustees of State InstituSee Focus on Education, Page 20 the executive director of the Missisby Stacey Phillips
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