Elizabeth Truck Center by Alana Bonillo

Elizabeth Truck Center

Elizabeth Truck Center really does do it all. Not only is the facility known as the largest commercial vehicle collision and repair center in the Tri-State area, but its award-winning truck builds have truly put the business on the map. “Our collision work is done with the same quality as our custom builds,” shares Elizabeth Truck Center President Steve Pesce, Jr. “We are known as one of the top truck customizers in the country. We won a major truck build-off at the Mid-America Trucking Show back in 2005 in Louisville, KY. We’ve produced over 100 custom trucks; probably about 20 of those are super customs. While our primary business is collision and paint service, we are also custom truck builders.” It all began with Steve Sr., who opened Car Craft Collision in Brooklyn in the 1970s. Although Steve Jr. and his brother, Anthony, did not automatically set out to work in the industry (having graduated from St. John’s University with business degrees), they eventually followed in the tradition of their father. In 1996, the Pesces opened Elizabeth Truck Center, where Steve Jr. took on the day-to-day operations. (Anthony, meanwhile, took the reins at Car Craft Truck Works.) The business grew substantially over the years; today, the New Jersey location houses the collision center, a parts department and a full-service tow truck dealership for Miller Industries. Elizabeth Truck Center performs collision repair work on all heavy and medium trucks, including tractor trailers, semi-trucks, pickup trucks and emergency equipment such as fire engines and ambulances. Vans are the lightest vehicles they do. Additionally, the facility works on smaller motor vehicles for select friends and family. Elizabeth Truck Center also houses the Custom Chrome Shop, which Steve Jr. calls a “trucker’s candy store.” The Chrome Shop is run by his sister, Kim Ruggiero. These days, Steve Jr. oversees collision and sales at the New Jersey location, where he utilizes his background in accounting. In 2015, the family opened a satellite shop, Elizabeth Truck Center of Long Island. A member of AASP/NJ for at least 15 years, he takes part in the AASP/NJ Workers’ Compensation Insurance Safety Group through the Amato Insurance Agency and is glad to have AASP/NJ Executive Director Charles Bryant to turn to for any and all issues.

“Charlie is a good person to get advice from.

Father and sons in business. Left to right: Anthony, Steve Sr. and Steve Jr.

Whenever we have any motor vehicle issues or legal issues, he helps us get what we need. He’s helped us obtain needed paperwork to protect us with issues with insurance claims.” Steve Jr. and his crew also look forward to attending AASP/NJ’s NORTHEAST® Automotive Service Show annually to learn about the newest tooling on the market. While Elizabeth Truck Center faced challenges as a result of COVID-19, the business overcame an even greater obstacle last year. In March 2020, shortly before the lockdown hit, a major fire took out Elizabeth Truck Center’s 20,000-square-foot mechanical garage. Fortunately, the business was able to recover. “We actually rebuilt ourselves back to full capacity, and it really shows our resilience. I can’t speak enough about the people in the trucking community who reached out to us and helped in every single way. It’s a work in a progress – and we just passed the one-year anniversary of the fire – but we got everything stabilized. We are keeping the ball rolling and are rebuilding better than ever.” Looking back on his career of choice, Steve Jr. truly has no regrets and loves the daily grind of working in this industry. “Basically, no two days are alike. There are a lot of different challenges that come your way each day. The collision industry is not like a grocery store; there’s no repetitive cycle. There’s always a challenge with insurance companies, jobs and employees. There is never one day that is the same as the last.”

NJA

Co-celebrating decades of creating chemistry between two industry leaders

Here’s to 235 years of combined service excellence

This year, as Albert Kemperle Inc. celebrates its 80th anniversary, BASF also celebrates its 155th anniversary. We are proud of our decades of partnership with BASF and years of serving the auto paint and body industry together. Kemperle’s founders would be proud of this relationship and the growth their company has experienced because of it.

Today, as we look forward to many more decades of service to our customers, we find ourselves filled with gratitude. The creativity, hard work, and sense of responsibility of the people working for our two companies have made us what we are today.

Thank you for your many years of loyalty.

626 E. Elizabeth Ave., Linden, NJ 07036 Phone: (908) 925-6133 Fax: (908) 925-4344 414-416 Madison Ave., Paterson, NJ 07524 Phone: (973) 279-8300 Fax: (973) 279-9030 631 Clifton Ave., Toms River, NJ 08753 Phone: (732) 797-3942 Fax: (732) 797-0774 100 Melrich Road, Cranbury, NJ 08512 Phone: (609) 860-2800 Fax: (609) 860-2801

4 Emery Ave., Randolph NJ 07869 Phone: (862) 244-4818 Fax: (862) 244-4822 www.kemperle.com

Diagnostically speaking, there is no substitute.

Porsche technology. Porsche Genuine Service & Parts.

Contact one of these authorized dealers.

Town Porsche

105 Grand Avenue Englewood, NJ 201-227-6505 Fax 201-227-6553 town-motorcar.porschedealer.com

Flemington Porsche

213 Route 202/31 Flemington, NJ 800-216-5124 Fax 908-782-9397 flemingtonporsche.com

Porsche Princeton

3333 Route 1 Lawrenceville, NJ 609-945-1500 Fax 609-945-1501 princetonporsche.com

Paul Miller Porsche

3419 Route 46 East Parsippany, NJ 973-227-3000 Fax 973-575-8396 paulmillerporsche.com

Porsche Monmouth

280 Route 36 East West Long Branch, NJ 732-935-7600 Fax 732-935-7602 porschemonmouth.com

Manhattan Motorcars

711 11th Avenue New York, NY 877-661-1586 Fax 646-473-0798 manhattanmotorcarsporsche.com

© 2021 Porsche Cars North America Inc. Porsche recommends seat belt usage and observance of traffic laws at all times.

COVER STORY

TAKE IT OR Leave IT:

Legal Views on Insurer Abuse

“Take it or leave it.”

If you’re an auto body facility owner or estimator dedicated to providing safe and proper repairs, the chances are incredibly high that you’ve heard that statement uttered by an insurance company representative more than once. Performing OEM-required/recommended procedures on vehicles for the safety of motorists is an absolute must, but the expertise and equipment necessary to reach this goal often come at a higher price than many insurers seemingly want to pay. This typically leads to a carrier drawing a line in the sand and refusing to negotiate, leaving the shop – and, more significantly, the consumer – stuck in a frustrating and potentially hazardous position. This scenario is nothing new to Jay M. Feinman, Rutgers Law professor and author of the book Delay, Deny, Defend: Why Insurance Companies Don’t Pay Claims and What You Can Do about It. “What we’ve seen in the past 25 years is that insurance companies view the claims process as a profit center rather than simply the part of the business in which they honor their promises. Some companies are more inclined to delay payment of valid claims, deny valid claims in whole or part and force their policyholders to litigation and then aggressively defend those cases. What that means for consumers is that many people will get nothing or get less than they’re entitled to, because they’ll assume the insurance company is correct when it says they don’t have coverage or [says], ‘Here’s all that [your] coverage entitles [you] to.’”

Naturally, this approach has led to precarious situations on shop floors throughout the Garden State. Although he regularly provides insurers with OEM repair procedures and other documentation to back up his need to perform manufacturer-specified operations, AASP/NJ Collision Chairman Dennis Cataldo, Jr. (D&M Auto Body; Old Bridge) reveals that this approach yields inconsistent results at best. “When you present evidence of why you are asking for certain stuff, some of the insurers have no problem. Others have an insane problem; it’s like they’re on a tear and all they want to do is tell you, ‘No!’ It gets tiring after a while.” To make matters worse, Cataldo adds that some carriers have a habit of approving payment for procedures on one job and then refusing to do so on the next. “We’ll get a particular adjuster who figures out how we write estimates and goes along with everything, but then there will be someone else here next month. Insurers always move people around, so we’re always going back to square one. Instead of getting new stuff added that we need to get paid for, we have to waste time getting the old stuff back […] It’s coming to a point where we’re going to have to settle things in court to get paid to repair cars properly.” That’s exactly the direction that some shops in this state are taking via an ongoing lawsuit against New Jersey Manufacturers Insurance (NJM). Originally filed in June 2019 and recently amended to bring the total number of Plaintiffs to four New Jersey-based collision facilities and 18 claimants, the suit alleges that NJM committed a number of offenses, including violations of the Racketeer Influenced and Corrupt Organizations (RICO) Act, the Consumer Fraud Act (CFA) and the New Jersey Antitrust Act (NJAA). The suit also includes individual claims for injurious falsehood and tortious interference with prospective business advantage. The Plaintiffs seek actual/punitive/treble damages, interest, costs of the suit, attorneys’ fees and “such other and further relief the Court deems just and proper.” Additionally, the suit seeks injunctive relief to prevent future injury. When asked to identify what he views as the most egregious act committed by NJM, the Plaintiffs’ attorney, Joshua Bauchner of Ansell Grimm & Aaron, PC, points to one of the industry’s most infamous words: Steering.

“The manner in which the Defendant is doing that is not just by telling a consumer to go to another shop – particularly a DRP shop that has been forced to accept below-market Labor Rates and material and parts costs. It’s also doing this by telling customers, ‘Don’t go to this body shop; they make insufficient repairs, and we have a lot of problems with them,’ or, ‘That shop’s prices are too high, and you’re going to have to pay the difference between their high prices and what we’re prepared to pay.’ Those kinds of falsehoods interfere with the body shop’s relationship with its customer in an attempt to force that customer – in violation of the New Jersey ‘Shop Choice Rule’ – to go to one of the Defendant’s preferred shops so it can save a few dollars on the cost of repair without regard for the customer’s right to choose a shop and the relationship it might have with that facility. Frankly, the Defendant is tortiously interfering with that relationship.” Additionally, Bauchner believes that the suit shines a light on the insurance industry’s long-standing refusal to truly negotiate with shops over the cost of repairs.

“A negotiation in good faith does not mean that you get to dictate the rate. When an insurer simply tells a repair facility that they are not going to pay its charges, it completely undermines the requirements of the law to first negotiate in good faith. The consequences of this are significant. It interferes with a shop’s relationship with its customers and violates the law, but the biggest effect is that unsafe vehicles are returning to the roads by requiring the use of aftermarket parts even though the insurance contract requires OEM. It’s requiring substandard and incomplete repairs. It’s a disservice to the insured but also a hazard to the vehicles on the roads in this state and beyond – all to

save a few bucks.” With major lawsuits often emotional and logistical headaches regardless of outcome, AASP/NJ has stepped up to provide assistance to members who elect to utilize the legal system for help. The association’s Legal Fund was created exclusively for members in good standing and is offered at the discretion of the association’s Board of Directors for legal proceedings that stand to result in a favorable decision or will in some way positively affect or advance the industry. Financial assistance goes toward expenses, including (but not limited to) legal fees, reports, transcripts and costs resulting from the legal process. AASP/NJ is encouraging one-time or monthly contributions from members to support the endeavor.

“Smaller shops really don’t have the means to go to court,” Cataldo says. “By supporting this Fund, we can put money toward larger cases that will help in greater ways in the long run.” What about recourses away from the courts? Consumers who find themselves under-indemnified by their insurer always have the option of filing a complaint through the New Jersey Department of Banking and Insurance (NJDOBI). However, complainants need to enter the process with realistic expectations. “[NJDOBI] doesn’t have the authority to coerce the insurance company into resolving the claim, but they will make sure that [the] claim gets a little more attention by the insurance company,” Feinman explains. “Over time, if [the Department] gets enough complaints about a particular kind of claim or a particular insurer, [it] may investigate more broadly.” So, what would be “enough complaints”? Well, certainly not what New Jersey collision repair consumers are sending in these days.

“I try to get every single person who comes through the door to file a complaint, because there’s usually something on every job that has an issue,” Cataldo says. “I’d say five percent of the people actually file complaints.” With the (in Bauchner’s words) “David-and-Goliath” battles between shops (typically small businesses with even smaller margins) and insurers (massive corporations with considerable budgets and legislative/regulatory pull) outlined in this story very likely to continue in and out of court, perhaps the greatest key to resolving these matters is to get consumers more involved than ever before. If every shop reading this magazine encouraged just 10 consumers a month to file a NJDOBI complaint, there’s no telling how far things could go. But first, shops need to keep consumers who walk through the door fully aware of what it takes to properly repair a vehicle and what their insurers should be doing to ensure that happens. “Information is the oxygen of the insurance process,” Feinman says. “The more detailed information that the body shop provides, the more likely it is they’re going to get a better result.”

NJA

Motorist Coverage: Uninsured versus Underinsured

We have all heard of Uninsured Motorist (UM) coverage and Underinsured Motorist (UIM) coverage, but do we know what they are and when they apply? Are your customers aware of their rights under their insurance policies? Uninsured Motorist (UM) coverage covers insureds and their household family members when they are injured due to the negligence of another driver who is “uninsured” or injured due to a “phantom” or “unidentified” driver who causes an accident and leaves the scene or is otherwise unidentified. Uninsured Motorist coverage is usually (though it need not be) in the same amount as the liability coverage within an insured’s policy. It is important that a policyholder make sure that such coverage is equal to their liability coverage.

If the coverage is not equal to that of the liability coverage, then one is covering someone else more than they are covering themselves. Underinsured Motorist (UIM) is for when another driver injures the insured or a household family member and they do not have enough coverage to pay for the damages. Underinsured Motorist coverage generally comes in the same amount as the UM coverage. Never will an insurance company provide higher amounts of UM or UIM than they provide liability coverage. That is why, in general, it is good to have higher liability limits – it protects you from someone suing you and protects you and your family in the event that one is injured by the negligence of another who is not adequately insured. You can be assured that if a driver who is not adequately insured certainly doesn’t have the assets to cover a substantial claim. If you have any questions about UM versus UIM coverage, please do not hesitate to contact the Law Offices of Mitchell H. Portnoi at (908) 228-8800, ext.1007.

NJA

Genuine Volkswagen Collision Parts Are a Call or a Click Away.

The best repairs start with the best shop-supplier relationship. Contact the following Authorized Volkswagen dealers by phone, fax or email to get the parts you need, when you need them.

Flemington Volkswagen

213 Route 202/31 Flemington, NJ 08822 TOLL FREE: 877-657-2787 FAX: 908-782-1795 rmuir@flemington.com www.NJPARTS.com

Paul Miller VW of Bernardsville

118 Morristown ROAd Bernardsville, NJ 07924 Toll Free: 877-318-6557 Local: 908-766-1600 Fax: 908-766-6171

Douglas Motors

491 MORRIS AVE. SUMMIT, NJ 07901 PHONE: 908-277-1100 FAX: 908-273-6196 TOLL FREE: 800-672-1172 www.douglasvw.com email: douglasparts@douglasautonet.com

Trend Motors

221 Route 46 West Rockaway, NJ 07866 888-267-2821 fax: 973-625-4985 www.trendmotors.com email:dreinacher@trendmotors.com

Crestmont Volkswagen

730 ROUTE 23 NORTH POMPTON PLAINS, NJ 07444 TOLL FREE: 800-839-6444 fax: 973-839-8146 www.crestmontvw.com email:vwparts@crestmont23.com