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Dan Risley Talks to Autobody News about ASA by Chasidy Sisk
Federal Anticompetition Lawsuit Against GM Program Dismissed Again but Amended Complaint is Allowed A federal judge in Louisiana has again dismissed an aftermarket parts retailer’s lawsuit challenging GM’s ‘Bump the Competition’ program designed to boost sales of originalequipment parts at dealerships, but he gave the plaintiff, Felder’s Collision Parts Inc., permission to amend its complaint. The initial complaint, filed in October 2012, was dismissed in April 2013 by U.S. District Judge James Brady. The complaint said the program, which requires dealerships to ‘sell OEM parts below dealer cost,’ is a violation of the Sherman Act, the
Only a month after beginning work with the Automotive Service Association (ASA) as their Executive Vice President, collision industry veteran Dan Risley was offered the position of ASA Interim Executive Director. With 26 years of industry experience under his belt, Risley intends to offer his expertise to benefit ASA and the auto repair industry as a whole. He took time out to share his goals for ASA and his stance on several industry concerns with Autobody News readers. Though Risley has served the auto See Dan Risley Talks ASA, Page 30
Two More California Body Shop Owners Plead Guilty
insurance fraud, grand theft and forgery following an in-depth investigation by the California Department of Insurance. The investigation revealed San Miguel, an Allstate adjuster, fraudulently inflated repair estimates and improperly issued payment checks, prosecutors said. Several Salinas auto body shops, including Central Coast Auto Body and Specialty Auto Body, were linked to the fraudulent claims, according to CDI. These shops were owned by Ramirez and Garibay, respectively. The investigation linked Robledo, who worked in both shops, and See Two More Plead, Page 9
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The Salinas Californian has reported that five men indicted two years ago on insurance fraud, grand theft and forgery charges will be sentenced in July after the final two entered guilty pleas June 10, according to a release from the Monterey County District’s Attorney’s office. Meliquiades “Micky” Garibay, 42, and David M. Ramirez, 45, both of Salinas, pleaded guilty to insurance fraud and forgery charges. Their pleas joined those of Ricardo “Pee Wee” Robledo, 33; Jorge “George” Torrez, 35; and Sergio San Miguel, 40, who pleaded guilty in May to committing insurance fraud. All five were indicted Sept. 30, 2011, on various counts of automobile
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Robinson-Patman Act (which prohibits anticompetitive pricing) as well as the Louisiana unfair trade practices and anti-trust laws. Court documents describe antitrust, monopoly, and predatory pricing concerns. Felder’s Collision alleges that GM and original-equipment parts distributors such as All Star Automotive Group engaged in illegal “predatory pricing” practices to undercut aftermarket prices and drive aftermarket competitors out of business. The suit alleges violations of federal and state antitrust and state consumer protecSee Anticompetition Suit, Page 24
Judge Rules The Hartford Owes Connecticut Body Shops $20 Million For Unfair Labor Rate Practices
A Superior Court judge has ordered The Hartford Insurance Company to pay $20 million to Connecticut auto body shops for an unfair trade practice related to hourly labor rates for vehicle repairs. The judge’s recent decision for punitive damages is in addition to a jury award of nearly $15 million decided against the company in 2009. On Nov. 17, 2009, a jury hearing the case awarded $14.77 million to the auto body association, saying that the insurer engaged in a practice that resulted in a loss to the repair shops. Judge Alfred J. Jennings Jr. has now added $20 million in punitive damages in his ruling on June 5. The Auto Body Association of Connecticut alleged that The Hartford pressured its in-house appraisers to put artificially low labor rates in their appraisals. The jury found that the company’s practices regarding hourly rates paid for auto body repairs were unfair, and the judge said the company tried to cover up its conduct by instructing employees not to write anything down about labor rates in favor of off-the record conversations.
“The punitive damages award is intended not only to punish The Hartford for its unfair trade practices, including what the court cited as The Hartford’s intentional efforts to conceal its conduct from regulators and the public, but also to deter all insurance carriers in the market from engaging in the same unlawful conduct,” said David A. Slossberg, attorney for the Auto Body Association. Slossberg is with the firm Hurwitz, Sagarin, Slossberg & Knuff in Milford, CT. “The court has placed the entire industry on notice that forcing their appraisers to violate the code of ethics by writing estimates at unreasonably low labor rates must stop,” Slossberg said. Slossberg said he believes it’s the largest punitive damages award under the unfair trade practices law in state history. The insurance company is disappointed and plans to appeal, said The Hartford’s spokesman, Thomas Hambrick. The company contends its conduct was not improper. See CT Shops to get $20M, Page 3
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