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Q&A With Calif. BAR Chief John Wallauch by Ed Attanasio
As a follow-up to our interview of April 2012, Autobody News sat down with John Wallauch, Chief of the Bureau of Automotive Repair (BAR) recently, to find out about what he has learned and achieved during his first 15 months on the job.
Q: Legitimate collision repairers are very concerned about sketchy shops that are getting away with sub-par work and committing outright fraud. How can you respond to that? JW: We have several body shops that are going through the courts all the
time, but you rarely hear about the settlements once these cases are settled. It’s difficult to respond to this question, because most of these violators work under the radar, late at night and early in the morning. If we BAR Chief John don’t know about Wallauch says he’s quickly learned them or see them in action, I don’t much about the collision industry in know how anyone his first 15 months can expect us to do in the position something about See Q&A with Bar Chief, Page 26
ASCCA/CAA Lobbies California Capitol in Sacramento during Joint Legislative Day by Ed Attanasio
It was a beautiful day to change the industry, one meeting at a time. On April 16, the Automotive Service Councils of California (ASCCA) partnered again with the California Autobody Association (CAA) to convene in Sacramento and meet ASCCA/CAA Lobbyist Jack Molodanof (left) and ASCCA with their California legisla- President Jack Crawley (right) spoke to the ASCCA/CAA tors to have their concerns members attending Legislative Day heard. More than 80 shop owners, both and push legislation that benefits both mechanical and collision, were on groups. hand to represent both organizations See ASCCA/CAA Lobbies, Page 28
VOL. 31 ISSUE 6 JUNE 2013
CIC Continues Discussion of Alternatives to Existing Paint and Materials Calculations by John Yoswick
A consultant whose study indicated that the vast majority of the industry finds the current way that paint and materials compensation is calculated is a poor methodology is now saying more accurate and fair calculation systems exist, are being used by some shops and are being accepted by some insurance companies. “The most important message here is that by properly presenting itemization and documentation using a paint material calculation system, we are actually able to resolve these conflicts,” consultant Steve Lanza of Richfield Associates said at the Collision Industry Conference (CIC) held in Phoenix in April.
Lanza’s firm in 2012 released its findings that compensation for paint and materials has not kept pace with increases in the costs of these products, and that 64 out of 68 industry participants interviewed think the current way paint and materials compensation is calculated is a poor methodology. Only four people (including representatives of three repairer operations and one estimating system provider) rated the current system as “adequate” or “good.” The study concluded the current system is flawed in part because on smaller jobs, repairers do not receive adequate compensation, and for large repair jobs, insurers believe materials charges become excessive. It also found that while average See Paint and Materials, Page 30
Florida Shop Owner Files 53 Lawsuits to Counter Short Pays by Insurers by Melanie Anderson
In Delray Beach, FL, Eddie Quintela, 42, owner and operator of Collision Concepts, recently spent $10,450 on filing fees for 53 separate lawsuits against insurers for short pays. Quintela says he’s not worried about the money. He will recoup court Eddie Quintela costs and attorney’s fees when he wins his cases, plus recover the compensation he should have received in the first place for properly repairing the vehicles. To date, he and his customers have won every single case they’ve filed against insurers. According to Quintela, his plan to get insurers to pay for underpayments is pretty simple and easy to do. “If we cannot get an agreed price
with an insurance company to properly repair a vehicle, we engage the customer,” said Quintela. “We give our customers a couple of options: 1) they can pay the difference, or 2) the customer can sign an Assignment of Benefits or Assignment of Proceeds and I will go after the insurance company on their behalf. I’ll step into their shoes. Every customer I’ve discussed this with agrees to take the second option.” Currently, Quintela has 80 customers he is representing in court. In one week alone, he filed 53 cases. The insurance companies he’s currently in litigation with include State Farm, GEICO, USAA, Travelers, Bristol West, Infinity and others. Collision Concepts, a 10,000square-foot shop, currently has seven DRPs. Quintela and his staff of 11 work on 80–100 vehicles per month. He’s been in business since 2002. See 53 Lawsuits, Page 25
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