Autobody News March 2011 Southwest Edition by Autobody News

Southwest Edition Texas Oklahoma Louisiana New Mexico

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VOL. 29 ISSUE 3 MARCH 2011

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Snow Hits Oklahoma, North Texas Closing Class Action Judgments: GEICO Wins Appeal vs. Greenberger & Progressive Wins 2/6 vs. Blue Ash Inc. Shops and Wreaking Havoc on Motorists Freezing temperatures, snow and sleet pummeled parts of Texas, Oklahoma, Arkansas and Louisiana as it made its way northeast earlier this month. The

Tulsa, OK, ‘where the deer and the antelope play...’ wait, where’d the antelope go?

storm hit hardest from January 31 through February 3 and again on February 9 and 10, although the threat of snow loomed through the area for most of the month. In New Orleans, a mix of rain and sleet fell on the city’s northern districts and outlying neighborhoods. Louisiana Gov. Bobby Jindal declared a state of emergency January 27 in anticipation of the weather, activating the state’s Crisis Action Team to monitor possible hazardous conditions that could affect parts of the state. State government offices in 55 Louisiana parishes were closed on See Snow, Page 8

CA Paint Jobber NDI Sues BMW North America After the Automaker Implemented its own BMW Paint Line

Nicolosi Distributing Inc. (NDI), a paint jobber in the San Francisco bay area, filed a lawsuit against BMW of North America earlier this year alleging intentional interference with a contract with a BMW-certified shop. NDI accuses BMW of North America of interfering with a contract the jobber had with a BMW-certified shop for paint supplies. The suit pertains to a contract signed between NDI and German Motor Collision Center, a BMW-certified collision center connected to the BMW of San Francisco dealership in May of 2005. The contract was a multi-year agree-

ment that BMW of North America was aware of before German Motors Collision Center signed it. NDI contends that “BMW intentionally interfered with NDI’s contractual relationship with German Motors Collision Center... by the following conduct: BMW has decided to product its own paint line ... BMW requires auto body shops painting a BMW automobile to only use BMW paint. BMW forced German Motors Collision Center to enter into a written agreement ... which requires German Motors to use BMW paint on See Jobber Lawsuit, Page 14

Two collision-related class action lawsuits against major insurers have recently been decided in favor of the insurers. In the GEICO case on appeal partially due to lack of evidence (the vehicle). In the Progressive case a summary judgment was reErica Eversman comments on turned on two of Progressive vs. six counts Blue Ash et. al. charged. The plaintiffs in the Progressive case have decided to drop the remaining existing charges to facilitate an appeal of the summary judgment.

Don’t Give Away the Evidence The January 10, 2011 GEICO decision pertains to a Chicago law professor’s prospective class action suit accusing the insurance company of deliberately omitting repairs from its estimates. He lost the case in part because he gave away the car (the evidence) before the case was resolved. On July 4, 2002, Greenberger, a professor and administrator at a Chicago law school, was involved in an automobile accident, and his 1994 Acura sustained damage to its bumper,

steering box, suspension, and lower body. The next day, a GEICO insurance adjuster inspected the car at Greenberger’s home and wrote him a check for $3,284.69 ($3,784.69 minus a $500 deductible). Greenberger cashed the check but did not repair his car. Five months later, a stranger approached Green-berger in a parking lot and expressed interest in buying the car. Greenberger permitted this prospective buyer to take the Acura to a friend’s body shop for an estimate of what it would cost to repair it. The buyer’s technician, Sarkit Tokat of Lake Side Auto Rebuilders, delivered an estimate of $4,938.65, about $1,150 higher than GEICO’s estimate. The sale was not made, however, and in December 2002 Greenberger donated the car to charity without making any repairs. Exactly three years after accepting GEICO’s payment on his claim, Greenberger filed a proposed class-action lawsuit in Cook County Circuit Court alleging breach of contract, violation of the Illinois Consumer Fraud and Deceptive Practices Act, and common-law fraud. He claimed that GEICO systematically underpays on its auto-accident claims by omitting See Class Actions, Page 35

REGIONAL STORIES in this issue...

HABA Mulls Labor Rates Surveys for Houston Area . . . . . . . . . . p. 4

OK Commissioner Doak Refocuses Anti-Fraud Investigations . . p. 7

HABA Hosts Legislative Breakfast for Texas Reps . . . . . . . . . . . . p. 9

Caliber Collision Expands in Austin, TX . . . . . . . . . . . . . . . . . . . .p. 12

Sherwin-Williams Upcoming Workshopin Houston, TX . . . . . . . .p. 12

NATIONAL Articles and COLUMNS in this issue...

Toyota Probe Finds No Electronic Flaws . . . . . . . . . . . . . . . . . . . .p. 20

Attanasio—Crozat’s G&C Autobody Seizes Opportunity . . . . . . .p. 16

Franklin—Consistency May Be Boring—But it’s Profitable . . . . .p. 32

Danalevich—Insurance Appraiser Bootcamp . . . . . . . . . . . . . . . .p. 34

Amaradio—Setting the Record Straight on Parts Testing . . . . . .p. 33

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