New England Automotive Report January 2020 by Thomas Greco Publishing, Inc.

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PLUS: Rolling the Dice AASP/MA at SEMA SCRS Changes the Game

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2 January 2020

New England Automotive Report

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January 2020 • Volume 18, No. 1

DEPARTMENTS

CONTENTS FEATURES

VICE PRESIDENT’S MESSAGE By Kevin Gallerani 8 | Saving Lives – the OEM Way

EXECUTIVE DIRECTOR’S MESSAGE By Evangelos “Lucky” Papageorg

16 | Rolling the Dice

SPECIAL ANNOUNCEMENT 21 | ADALB Advisory Ruling Update

LOCAL NEWS 25 | Central MA I-CAR Committee Axe Tournament Raises Thousands for Auto Body Education 26 | MA Schools Win Big at CREF Awards

NATIONAL NEWS 28 | AASP/MA Hits SEMA - Takeaways and Thoughts from Members and Officers By Alana Bonillo 30 | SCRS Launches New Blueprint Optimization Tool 32 | Consent Decree Campaign Earns Bipartisan Support 35 | AASP/MA Reports on Legislative Activity, Labor Rate Survey at AASP National Meeting By Alana Bonillo

ALSO THIS ISSUE 6 | AASP/MA MEMBERSHIP APPLICATION 12 | AASP/MA VENDOR AFFINITY PROGRAM SPONSORS 17 | WHERE’S LUCKY? AASP/MA CHAPTER MEETING SCHEDULE

ADVERTISERS’ INDEX Accudraft Paint Booths ................................OBC AkzoNobel ....................................................31 Audi Group....................................................37 Axalta ............................................................4 BASF ............................................................13 Best Chevrolet/Best CDJR ..............................IFC BMW Group ..........................................................24 BMW/Mini of Warwick ..................................33 Boch Chevrolet ........................................27, 46 Boch Hyundai ................................................27 Colonial Auto Group ......................................14 Empire Auto Parts ..........................................23

Matthew and Marcia Seebachan pose with Collision Industry Conference (CIC) Chairman Jeﬀ Peevy and his wife, Marie, at the latest CIC meeting in Las Vegas

38 | COVER STORY By Joel Gausten

Lives and Lawsuits: Why OEM Procedures Can’t Be Ignored

42 | LEGAL PERSPECTIVE By James Castleman, Esq.

Three Recent Legal Issues

Ford Group....................................................36 Genesis of Norwood ..................................27, 42 Honda Group ................................................45 Hyundai Group ..............................................11 Imperial Ford ................................................36 Ira Subaru ......................................................11 Ira Toyota of Danvers ......................................10 Kelly Automotive Group ................................IBC Kia Group ......................................................11 Linder’s, Inc. ................................................27 Long Automotive Group ................................20 Mazda Group ................................................34 McGovern Chrysler Jeep Dodge Ram ................26 Mopar Group ................................................19

Nissan Group ................................................40 PPG................................................................3 Quirk Wholesale Parts ......................................9 Reliable Automotive Equipment ........................7 Sarat Ford Lincoln..........................................46 Spanesi ........................................................44 Subaru Group ................................................18 Tasca Group ..................................................15 Toyota Group ................................................29 Volvo Group ..................................................22 VW Group ....................................................41 Wellesley Toyota/Scion ..................................32 Wheel Collision Center....................................23

New England Automotive Report January 2020 5

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PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

MASSACHUSETTS

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"#$!%&'%(!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 6 January 2020

New England Automotive Report

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New England Automotive Report January 2020 7

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VICE PRESIDENT’S MESSAGE

SEMA Show. It was an experience worth every second away from my business. For me, the biggest takeaway from SEMA was the growing need for this industry to fully embrace OEMrecommended/required parts and procedures. As you’ll read in this month’s issue, Matthew and Marcia Seebachan – the couple from Texas who won the multimillion-dollar lawsuit against John Eagle Collision – appeared on stage at the Collision Industry Conference (CIC) to share their story. What happened to them is truly heartbreaking and should never have occurred in our industry. A large percentage of educational seminars and vendor displays at SEMA focused on the proper ways to repair vehicles as defined by the auto manufacturer. This was a great thing to see, and the information I received was invaluable. Of course, documenting all the OEM procedures you perform is a critical factor in serving your customers and protecting yourself from liability. Every step your technicians take during a repair should be recorded and filed, and this paper/electronic trail of operations should also be used to better communicate with customers and insurers. There is now too much at stake for us to be negligent in tracking everything we did to get a vehicle back on the road in a safe and professional manner. As we begin 2020, let’s all re-commit to following OEM procedures, utilizing the best parts and products available and putting our customers’ safety first. We don’t just fix cars; we save lives!!!

Saving Lives – the OEM Way KEVIN GALLERANI

Collision repair is a very busy profession, so it makes sense that many shop owners, technicians and other industry members usually don’t have the time to travel to different parts of the country to gain a broader view of the issues and trends that affect all of us. However, I think it’s incredibly important to do all you can to jump in your car or take a flight every now and then to see what’s out there. That’s what I did in November when I flew to Las Vegas to attend the 2019

PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

MASSACHUSETTS

AASP/MA VICE PRESIDENT KEVIN GALLERANI is vice president of Cape Auto Collision Center in Plymouth, MA. He can be reached at (508) 747-0316 or kevin@capeautobody.com N

AU M TIVE AUT T TI TIV AASP/MA EXECUTIVE COMMITTEE

STAFF PUBLISHER

GRAPHIC DESIGNER

Thomas Greco - thomas@grecopublishing.com

Lisa M. Cuthbert - lisa@grecopublishing.com

SALES DIRECTOR

EDITORIAL/CREATIVE COORDINATOR

Alicia Figurelli - alicia@grecopublishing.com

Alana Bonillo - alana@grecopublishing.com

EDITORIAL DIRECTOR

PRODUCTION

Joel Gausten - joel@grecopublishing.com

Donna Greco - donna@grecopublishing.com

TREASURER Matthew Ciaschini

PRESIDENT Molly Brodeur VICE PRESIDENT Kevin Gallerani SECRETARY Gary Cloutier

IMMEDIATE PAST PRESIDENT Paul Hendricks

CREATIVE DIRECTOR Lea Velocci - lea@grecopublishing.com

AASP/MA STATEWIDE DIRECTORS

PUBLISHED BY: Thomas Greco Publishing, Inc. 244 Chestnut Street, Suite 202, Nutley, NJ 07110 Corporate: (973) 667-6922 / FAX: (973) 235-1963 www.grecopublishing.com

COLLISION DIRECTOR Rob DelGallo

AT-LARGE DIRECTOR Adam Ioakim

AASP/MA DIRECTORS Ray Belsito Alex Falzone Rick Fleming

Joshua Fuller Kevin Kyes Frank Patterson

Mike Penacho Dana Snowdale Bill Spellane

AASP/MA ADMINISTRATIVE OFFICE New England Automotive Report is published monthly by TGP, Inc., 244 Chestnut Street, Suite 202 Nutley, NJ 07110. Distributed free to qualified recipients; $48 to all others. Additional copies of New England Automotive Report are available at $5 per copy. Reproduction of any portions of this publication is specifically prohibited without written permission of the publisher. The opinions and ideas appearing in this magazine are not necessarily representations of TGP Inc. or of AASP/MA. Copyright © 2019 by Thomas Greco Publishing, Inc. Images courtesy of www.istockphoto.com

WWW.AASPMA.ORG 8 January 2020

New England Automotive Report

Evangelos “Lucky” Papageorg: AASP/MA Executive Director

Alana Bonillo: AASP/MA Administrative Assistant P.O. Box 212 Marlborough, MA 01752 617-574-0741

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New England Automotive Report January 2020 9

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10 January 2020

New England Automotive Report

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Make Quality Your Goal.

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BOCH HYUNDAI 391 Boston Providence Hwy Route 1, The Automile Norwood, MA 02062 PARTS LINE: 781-762-9210 TOLL FREE: 800-559-9210 bchwholesale@boch.com

New England Automotive Report January 2020 11

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New England Automotive Report January 2020 15

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EXECUTIVE DIRECTOR’S MESSAGE

Rolling the Dice EVANGELOS “LUCKY” PAPAGEORG

As you read this message, I hope that you all had a great holiday season and were able to enjoy time with family and friends. As we set our business plans in motion to achieve our goals for 2020, I ask that you take this time to consider your actions and the potential long-term effects of your decisions and business practices. In November, I had the good fortune to attend the SEMA Show in Las Vegas, and I was overwhelmed by the changes that have been taking place – as well as those we can only imagine when dealing with today’s vehicles and those of tomorrow. I was particularly struck by the theme of, “You don’t even know what you don’t know.” The great news is that there exists a wealth of resources that are at your disposal to utilize in the repair process: How to drive work to your business, how to educate your customers, how to properly document to protect your customers and your business and, far from the least of concerns, how to properly repair vehicles and document that you have done so. For the most part, our industry is lagging way behind the technological changes in vehicles. The different advancements and technological updates include advanced driver-assistance systems (ADAS) and new building materials that require very specialized repair techniques and equipment. As a collision repairer, you must stay very diligent in the education process – not only for yourself, but for your entire staff. You can no longer ignore the everlooming threat of litigation if you are accused of a faulty repair. To some of you, the events

16 January 2020

New England Automotive Report

surrounding the $40 million-plus lawsuit against John Eagle Collision Center in Texas may be old news that has been pushed to the back of your minds as you run your daily business. Let me assure you that the specter of another similar situation arising is all too real. Attorneys like Todd Tracy and others are keeping a watchful eye for the opportunity to have other large financial decisions made in the favor of their clients. You do not want to be known as the “John Eagle” of the Northeast. What really brought this issue back to the forefront was the Collision Industry Conference (CIC) held during SEMA this year. CIC Chairman Jeff Peevy started the meeting by pointing to an empty chair on stage next to the podium. He explained to the attendees (representatives of the collision repair, insurance, information and vendor industries) that the chair was there as a solemn reminder of who we are ALL obligated to protect in the repair process: The consumer/vehicle owner. The focus of the meeting dealt with all aspects of the collision process and the rapid changes that have been taking place (and those just around the corner.) After a brief lunch break, a first-ever event took place at a CIC meeting: A face-toface interview with consumers whose lives had been dramatically affected by improper repair techniques being performed. The interview focused on the aftermath, not on what led up to the actual faulty repair procedures. The interview was with Matthew and Marcia Seebachan. Through no fault of their own, they were involved in an accident that some

would describe as a “fluke,” but it has forever changed their lives. I tell you that there wasn’t a sound from the audience during the entire interview – not even a murmur. Nobody in that room was left emotionally unaffected. You could not consider yourself human if you were not affected. The couple spoke of all the research they had done when they were looking to buy a vehicle. They looked at safety records of makes and models they were considering. They looked for CARFAX reports. They were very thorough. This vehicle was the one that would someday transport the family they had hoped to start. As I indicated, the interview focused on the aftermath and the devastation brought to each of them and their families. The long-term effects, which must be lived to truly have an appreciation for what they have experienced, are still occurring on a daily basis. Without getting into the gory details, you would not want anyone you care about (or even someone you don’t know) to suffer as the Seebachans have. All of this happened because the roof of the vehicle they purchased had been glued on without any attention being paid to the OEM repair procedures that could have easily been researched, printed and followed by the “experts” in the repair process. John Eagle Collision Center, the “expert,” was found to be nearly 100 percent negligent to the tune of more than $30 million. But this is NOT about the money! It is about doing the right thing as collision repairers and documenting that you did. YES, it is important that you be reimbursed for doing so. But first and foremost, it is about performing

NEAR0120.qxp_NEAR1014 12/13/19 3:39 PM Page 17

safe OEM repair procedures. You will NOT be able to say, “It is what the insurer paid for and how they told me to ﬁx the vehicle.” It did not work for John Eagle Collision, and it won’t work for you. As repairers, we must understand our responsibilities and liabilities in the process. “Rolling the dice” is not an option. The Seebachans were not even the vehicle owners at the time of the repair, and they did everything right when it came to researching and purchasing their ill-fated vehicle. Subsequent tests have shown that Matthew would have, in all likelihood, only received a broken ankle in the loss, had the vehicle previously been repaired to OEM speciﬁcations. Further, he would not have had to have been extricated from a burning vehicle with fourth-degree burns to his body because of a lack of due dili-

gence to find the OEM proper repair procedures. John Eagle Collision Center, an “expert” just like you, failed both the original owner of the vehicle and the Seebachans. John Eagle Collision Center “rolled the dice,” and the Seebachans paid the price – in a “fluke” accident that nearly cost them their lives. For the first time ever, CIC allowed part of one of its meetings to be recorded. Thanks to the Society of Collision Repair Specialists (SCRS), we will all get a chance to hear and see the Seebachan interview. AASP/MA will be posting the video to our website. I urge you all to watch it along with your staff. Your customers and any insurance representatives you deal with would be strongly advised to do the same. We are ALL in this process together. We need to make educated and thoughtful decisions so that this type

of unfortunate outcome can be avoided in the future. AASP/MA is dedicated to helping this industry become the best it can be. It all starts with you. If you are reading this message, then you care about your business. If you are a member of AASP/MA, congratulations! If not, you are missing out on one of the most important resources you have available to your business. Go to page 6 to see our application and join NOW. In the upcoming AASP/MA members-only newsletter, Damage Report, we will focus on some of the standard operating procedures (SOPs) and best business practices you should follow to protect yourself and your customers. ROLLING THE DICE IS NOT AN OPTION!!! PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

MASSACHUSETTS

AASP/MA EXECUTIVE DIRECTOR EVANGELOS “LUCKY” PAPAGEORG can be reached at (617) 574-0741 or lucky@aaspma.org

Where’s Lucky?

AASP/MA Chapter Meeting Schedule In the first full week of January, Lucky will be visiting shops in the Boston/Southeast region and hosting a chapter meeting on January 8 at VAP Gold Member Quirk Auto Parts in Quincy.

M Visiting Boston/Southeast Visiting Midstate

M Visiting Western

During the second week of January, he will be in the Midstate region. Visiting Boston/Northeast

In the third week of January, he will be visiting the Western region and hosting a chapter meeting on the 22nd. (Location TBD.) He will be visiting shops in the Boston/Northeast region in the fourth week of January.

FEBRUARY 2020

In the first week of February, Lucky will be visiting shops in the Boston/Southeast region. During the second week of February, he will be in the Midstate region and will be hosting a chapter meeting on February 12. (Location TBD) Visiting Boston/Southeast

In the third week of February, he will be visiting the Western region. He will be visiting shops in the Boston/Northeast region in the fourth week of February and will be hosting a chapter meeting on the 26th. (Location TBD.) *Subject to change. Everyone should keep an eye out for meeting notices in their area. PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

Lucky can be reached at (617) 574-0741 or lucky@aaspma.org.

MASSACHUSETTS

M Visiting Midstate Visiting Western

M Visiting Boston/Northeast

NEAR0120.qxp_NEAR1014 12/13/19 3:39 PM Page 18

Genuine Replacement Parts For the Road Ahead.

Avoid problems down the road that will cost you time, money and customers. Choose Genuine Subaru Replacement Parts, engineered to fit better today, and perform better tomorrow.

For Genuine Subaru Body Parts, contact the following Authorized Subaru Dealers: Long Subaru 7 Sutton Rd. Webster, MA 01570 800-982-2298 Fax: 508-879-1212 tschube@longauto.com

18 January 2020

New England Automotive Report

Quirk Auto Dealers 115 E. Howard St. Quincy, MA 02169 Toll Free: 877-707-8475

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MCGOVERN CHRYSLER JEEP DODGE RAM 777 Washington Street Newton, MA 02460 Order Hotline: (800) 741-7563 www.clarkandwhiteautos.com For the best customer service ask for Mando Bogosian PREMIER CAPE COD 460 Yarmouth Road Hyannis, MA 02601 Order Hotline: (888) 927-8261 Fax: (508) 778-0900 www.premiercapecod.com QUIRK AUTO DEALERS 115 E. Howard Street Quincy, MA 02169 Order Hotline: (877) 707-8475

KELLY JEEP CHRYSLER 353 Broadway Route 1 North Lynnfield, MA 01940 Order Hotline: (800) 278-8558 Fax: (781) 581-2490 Email: kjcparts@kellyauto.com Over $1,000,000 in stock to support your business, and fast free delivery!

Check out MoparRepairConnection.com for resources, promotions and technical information. Â©2019 FCA US LLC. All Rights Reserved. Chrysler, Dodge, Jeep, Ram, Mopar and SRT are registered trademarks of FCA US LLC.

New England Automotive Report January 2020 19

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New England Automotive Report

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[SPECIAL] ANNOUNCEMENT

ADALB Advisory Ruling Update The much anticipated and longawaited ADALB Advisory Ruling regarding aftermarket parts availability and the practice of “BLACKBALLING” shops for high return rates had a “final” discussion and vote at the November 26 ADALB meeting in Boston. This Advisory Ruling is meant to address several aftermarket parts issues – in particular to remedy the “blackballing” by vendors of shops with “high return rates.” There was a last ditch effort made to delay the vote until the next ADALB meeting (now set for January 21), allowing for even more input and public comment from “concerned” parties and MORE anguish by those shops being affected. Thanks to the strong argument on the part of ADALB member Bill Johnson and a second of his motion by fellow Board member Rick Starbard to move the issue to a vote, the language as presented on the agenda (which is posted on the ADALB website at mass.gov/service-details/adalbnotices-of-meetings-and-agenda) was passed on a 3-to-0 vote, with Board member Peter Smith and Chairman Michael Donovan abstaining from voting. Many thanks to Bill Johnson, former ADALB member Lyle Pare and current Board member Samantha Tracy for the work they put into what has amounted to a year-long effort, shy by a couple of weeks, to get this newest Advisory Ruling language hammered out and resolved. Now, it is up to our industry to push for enforcement by lodging complaints when insurance appraisers and independents do not comply with the Advisory Ruling.

A special thanks to all those who have been attending these meetings and keeping this important issue at the forefront. Although this issue had been discussed previously, a special thanks to AASP/MA member Mike Boucher for having written the letter to Lyle Pare that was initially addressed at the ADALB meeting held on December 5, 2018. Since then, dozens of collision repairers have weighed in and attended the ADALB meetings, including Peter Langone, Gary Cloutier, Matt Ciaschini, Rob DelGallo, Dana Snowdale, Molly Brodeur, Mike Boucher, Jack Lamborghini and many more.

There was a last ditch effort made to delay the vote until the next ADALB meeting (now set for January 21), allowing for even more input and public comment from “concerned” parties and MORE anguish by those shops being affected.

AASP/MA members can visit our website and view videos of ADALB meeting at aaspma.org/aasp-mamembers-only/adalb-meetings. Enforce your customer’s rights and your rights under the CMRs!!! DO NOT be dissuaded from doing so! Lucky Papageorg Executive Director AASP/MA

To read the approved language, visit mass.gov/doc/adalb-advisory ruling-2019-xx-proposed-draft/ download.

PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

MASSACHUSETTS

LET US TURN THEM AROUND! CONTACT

New England Automotive Report Sales Director Alicia Figurelli (973) 667-6922 alicia@grecopublishing.com New England Automotive Report January 2020 21

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Quality Repairs Start With Volvo Genuine Parts.

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Rely on Volvo Genuine parts to get the right fit, at the right price, right now. Please contact the following dealers for your Volvo parts needs:

Prime Volvo Cars 1030 Hingham Street Rockland, MA 02370 Parts Direct: 781-927-3520 Fax: 781-927-3592 www.volvocarssouthshore.com

22 January 2020

New England Automotive Report

Volvo of Wellesley 962 Worcester Street Wellesley, MA 02482 Parts Direct: 800-247-3033 Fax: 508-651-1220 www.volvoofwellesley.com

www.volvogroup.com

NEAR0120.qxp_NEAR1014 12/13/19 3:39 PM Page 23

Wheel Collision Center

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1.800.292.RIMS (7467) New England Automotive Report January 2020 23

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THEY’RE CALLED “ORIGINAL BMW PARTS” FOR GOOD REASON. FOR UNCOMPROMISING PRECISION AND INCOMPARABLE QUALITY, YOUR BMW CENTER IS YOUR ONE-STOP SHOP FOR EVERYTHING BMW. For Original BMW Parts, contact one of these authorized BMW centers: BMW of West Springfield 1712 Riverdale St. West Springfield, MA 01089 PH: 413-746-1722 FAX: 413-304-9009 bmwwestspringfield.com

BMW of Stratham 71 Portsmouth Avenue Stratham, NH 03885 PH: 603-772-0000 FAX: 603-772-9436 bmwofstratham.com

Tulley BMW of Nashua 147 Daniel Webster Hwy Nashua NH 03060 PH: 603-888-5050 FAX: 603-888-8427 tulleybmw.com

New Country BMW 1 Weston Park Ave. Hartford, CT 06120 PH: 860-240-7881 FAX: 860-240-7873 newcountrybmw.com

BMW of Warwick 1515 Bald Hill Rd. Warwick, RI 02886 PH: 401-821-1510 FAX: 401-823-0530 bmwofwarwick.com

BMW of Sudbury Wholesale Parts 68 Old County Road Sudbury, MA 01776 PH: 800-338-3198 FAX: 508-881-7578 bmwofsudbury.com

New England Automotive Report

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[LOCAL] NEWS

Central Massachusetts I-CAR Committee Axe Tournament Raises Thousands for Auto Body Education

On November 14, over 30 industry vendors, auto body instructors, AASP/MA members and I-CAR representatives gathered for the Central Massachusetts I-CAR Committee’s inaugural Axe Tournament. The event, held at Half Axe in Marlborough, served as a fundraiser for the Collision Repair Education Foundation (CREF) in support of local auto body vocational school programs. In addition to raising more than $3,500 for area schools, the Axe Tournament

provided a fun and unique way to encourage inter-industry networking and camaraderie. Central Massachusetts I-CAR Committee Chairman and AASP/MA Board member Josh Fuller (Fuller Automotive; Auburn) was pleased to see the local industry show such a strong commitment to strengthening the educational opportunities available in the Commonwealth. “When shops think about having to keep up with technology, they

should also think about the schools. They often struggle to survive, and that is why we’re here to help.” Sponsors for the Axe Tournament included Enterprise Rent-A-Car, Auto Body Supplies and Paint (ABSAP), Al Brodeur’s Auto Body (Marlborough, MA), Lexus of Watertown, Albert Kemperle Inc., Bernardi Auto Group, BASF, Haskins Automotive of Wellesley, Body & Paint Center of Hudson and Lombard Equipment. PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

MASSACHUSETTS

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[LOCAL] NEWS

MA Schools Win Big at CREF Awards Congratulations to the following Massachusetts-based schools on receiving grants at the recent Collision Repair Education Foundation (CREF) Partner & Makeover Celebration at the SEMA Show in Las Vegas! $10,000 Collision School Career Readiness Benchmark Grant Montachusett Regional Vocational Technical High School (Fitchburg) $5,000 Hertz School Grant Assabet Valley Regional Technical High School (Marlborough)

$2,500 Liberty Mutual/Safeco Insurance Grants Greater Lowell Technical High School (Tyngsboro) Pathﬁnder Regional Vocational Technical High School (Palmer) $1,125 Enterprise Rent-A-Car School Grants Assabet Valley Regional Technical High School (Marlborough) Bay Path Regional Vocational Technical High School (Charlton)

PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

Founded in 1991, the Collision Repair Education Foundation (CREF) is a not-for-profit organization dedicated to supporting collision repair educational programs, schools and students to create qualified, entry-level employees and connect them with an array of career opportunities. For information on how to donate to programs supported by the Education Foundation, visit collisioneducationfoundation.org. The Collision Repair Education Foundation offers different grant opportunities throughout the year for collision schools. Instructors and school administrators are encouraged to email info@ed-foundation.org with their contact information. Details will be emailed to them as new opportunities arise.

MASSACHUSETTS

NEW ENGLAND’S NEWEST MOPAR DEALER

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Call Us For All Your MOPAR Needs or visit us on the web: www.mcgoverncjdrofnewton.com

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Call us and get the right MOPAR parts the FIRST TIME! 26 January 2020

New England Automotive Report

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Boch Hyundai

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New England Automotive Report January 2020 27

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[NATIONAL] NEWS By Alana Bonillo

AASP/MA Hits

- Takeaways and Thoughts from Members and Oﬃcers

Christian Ruecker of DEKRA Services, Inc.

Danny Gredinberg of the Database Enhancement Gateway (DEG)

The 2019 SEMA Show once again drew more than 160,000 automotive enthusiasts from around the world to take in the latest in industry trends, discussions and education. Not surprisingly, this large crowd included representation from the AASP/MA community. “I think the most important thing I took away from SEMA was the education,” shared AASP/MA Executive Director Evangelos “Lucky” Papageorg, who attended the Show for the first time this year. “The most important and serious takeaway is that we really don’t know what we don’t know. The information that is available to us is incredible; people need to start getting into the habit of researching.” Papageorg took advantage of attending as many of the courses offered through the Society of Collision Repair Specialists’ (SCRS) Repairer Driven Education (RDE) series as possible. Highlights included a discussion led by Mike Anderson (Collision Advice) and Danny Gredinberg of the Database Enhancement Gateway (DEG) that delved into the valuable resources available in vehicle manufacturers’ owner’s manuals. While attending the SCRS-hosted 2019 OEM Collision Repair Technology Summit, he was especially intrigued by a presentation from Christian Ruecker of DEKRA Services, Inc., who focused on the crash test of a Mercedes-Benz C200 CDI T-Model against a trailer hitch mounted on an unbraked barrier with 2,923 pounds at impact speed of 6.1 miles per hour. The test showed the high level of issues that a “light collision” can cause, demonstrating that even a low-speed impact can result in structural damage that could affect the safety of the vehicle in the future. Papageorg is in the process of obtaining the presentation and video for inclusion on the AASP/MA website (aaspma.org). “It’s worthwhile to the public so they can see what can happen in a very minimal front-end collision as the damage travels back. We want to make this [presentation] available to as many people as possible.” AASP/MA Vice President Kevin Gallerani (Cape Auto Body; Plymouth) returned from his third SEMA trip with a fresh supply of tools, equipment and knowledge to help further his business. “It’s always one of those events that just blows you away when you get there.” Gallerani joined his father, David, and the shop’s service manager, James Bartels, in hitting the SEMA floor to seek out the latest news on OEM certifications and ADAS calibration equipment. They spent three full days making worthwhile investments, including the purchase of a European-produced strut tool that provides increased safety over similar models offered in the US. “We would not have been aware of this had we not gone to this show. It is the place to see everything. We bumped into it and bought it instantly.” continued on page 46

Mike Anderson of Collision Advice

28 January 2020

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WHY GENUINE PARTS? It’s the Right Thing to Do

You lose money when aftermarket parts don’t fit. Toyota Dealers are your best source for Genuine Toyota Parts. All it takes is one call. For Toyota Genuine Parts please call one of these authorized local Toyota Dealers: IRA Toyota of Manchester 33 Auto Center Road Manchester, NH 03103 Toll Free: 800-828-6076 Direct: 603-657-2410 Fax: 603-657-2419

IRA Toyota Danvers 161 Andover Street Danvers, MA 01923 PH: 800-774-8411 ext.1 Direct: 978-739-8306 FAX: 978-739-8098

stirrell@iramotorgroup.com www.iramotorgroup.com

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Bernardi Toyota 1626 Worcester Road Framingham, MA 01702 Parts Direct: 800-248-3033 FAX: 508-879-7895 www.bernarditoyota.com

Wellesley Toyota 216 Worcester Street Wellesley, MA 02481 PH: 800-734-0006 Direct: 781-237-4042 FAX: 781-237-3481 parts@wellesleytoyota.com www.wellesleytoyota.com

ToyotaPartsAndService.com New England Automotive Report January 2020 29

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[NATIONAL] NEWS

SCRS Launches New Blueprint Optimization Tool The Society of Collision Repair Specialists (SCRS) has just changed the collision industry game forever. SCRS’ new Guide to Complete Repair Planning Blueprint Optimization Tool (BOT) was recently named the Best New Collision Repair and Refinish Product during the 2019 SEMA New Product Awards Breakfast in Las Vegas. Presented across 16 categories, the SEMA New Product Awards spotlight innovative and cutting-edge specialty equipment products either already on the market or soon to be introduced. Judging criteria for the awards encompasses quality, craftsmanship, technical achievement, marketability and consumer appeal. More than 3,000 products were entered for consideration for 2019. Additionally, SCRS’ new endeavor received a SEMA Global Media Award, which is presented to new products that are likely to succeed in their home countries while earning attention and acclaim outside the United States. These honors, which came as SCRS was celebrating the 10th anniversary of its renowned Repairer Driven Education (RDE) series at SEMA, further solidified the collision repair industry’s impact at the largest automotive event in the country and commemorated a major step forward in the services SCRS provides to the American collision repair community. The Blueprint Optimization Tool (BOT) software is an automated version of the widely used online Guide to Complete Repair Planning. The application provides collision repair facilities with an intelligent, easy-to-use estimate analysis tool that immediately identifies labor operations, line items and customizable charges that could be overlooked on an estimate. The BOT features: a uniform thread to operate with all major estimating systems; immediate identification of potentially overlooked repair operations and line items; the ability to simultaneously import overlooked operations and items into the estimate; and

Aaron Schulenburg of SCRS and Danny Gredinberg of the Database Enhancement Gateway (DEG) pose with awards given to SCRS’ new Blueprint Optimization Tool (BOT) at this year’s SEMA Show.

The application will allow users to audit in-house estimates before repairs to minimize supplements, audit external insurance estimates to identify overlooked repair procedures, establish consistency and uniformity with multiple users as part of the repair planning process and promote self-training for new employees. The BOT is the first software tool of its kind to perform automated, intelligent tasks previously required to be completed manually by the end-user. SCRS hosted live demonstrations of the new system at its booth throughout the week at SEMA. A must-see video demo is available online at the SCRS Collision YouTube channel. The SCRS Guide to Complete Repair Planning Blueprint Optimization Tool (BOT) will be available via scrs.com, with intended installation dates starting in the first quarter of 2020. SCRS members will receive discounted pricing. Speaking to New England Automotive Report shortly after SCRS received the prestigious awards, Executive Director Aaron Schulenburg expressed his appreciation for SEMA’s strong support of the collision industry. “It’s such a humbling experience for us, and it’s validating to know that we’ve built something that other people think has as much potential impact as we do. So many of our members have gained value from the Guide to Complete Repair Planning, and we believe this newest iteration with the Blueprint Optimization Tool – and the leading-edge technology within it – provides the industry with much-needed resources to ensure estimate efficiency, profitability and consistency. I don’t think we could have asked for a more positive response, and it’s our hope that the recognition helps to generate awareness of the tool and its capabilities.” PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

MASSACHUSETTS

support for individual and multiple shop proﬁling with customization for unique business needs. 30 January 2020

New England Automotive Report

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New England Automotive Report January 2020 31

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[NATIONAL] NEWS

Consent Decree Campaign Earns Bipartisan Support The battle to save the 1963 Consent Decree is far from over. In late November, Senators John Kennedy (R-LA) and Richard Blumenthal (D-CT) sent a joint letter to the Department of Justice (DOJ) urging it to preserve the document in support of consumers. The letter reads in part: Eliminating this agreement would turn back the clock on automotive consumer protections. It ensures that consumers are not coerced or directed to car repair shops that have sweetheart deals with certain insurers. It continues to promote competition and continues to be in the best interest of the American consumer. Should this [D]ecree be terminated, it would eliminate a longstanding agreement to protect consumers against price ﬁxing for auto repair claims and against “steering,” i.e., compelling customers to only use those repair shops beholden to insurance companies. Last April, the DOJ announced plans to review nearly 1,300 antitrust judgments enacted without end dates; in August, the 1963 Consent Decree was identiﬁed as one of the

actions proposed for termination as part of a much larger de-regulatory initiative by the current administration. The Consent Decree has served as a significant document for consumers that highlights an agreement between the insurance industry and the US government to forever refrain from practices that were established as anti-competitive means of steering, price fixing and depressing and controlling automobile material damage repair costs. The DOJ held an open comment period, which was extended specifically for comments on this Decree to October 2, becoming one of the two most-commentedon Decrees of the 1,300 proposed for termination. “The efforts of a great many individuals who responded to the request to sign the petition and forward it to the DOJ by the October 2 deadline has had a positive effect,” commented AASP/MA in an official statement. “The continued effort of collision repairers and their customers is still needed to assure that the petition is not terminated but rather kept in place and enforcement begun.” “We are enormously grateful to Senator Kennedy and Senator Blumenthal for this letter,” added Society of Collision Repair Specialists (SCRS) Chairman Brett Bailey in an association press release. “This is an issue of great importance not only to collision repairers across the nation, but to every American consumer.” PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

MASSACHUSETTS

32 January 2020

New England Automotive Report

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New England Automotive Report January 2020 33

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Superior service starts with superior parts. Rely on what Mazda drivers already know-Genuine Mazda parts extend a car's life. Designed specifically for Mazda vehicles Get the right part the first time We're an accurate, trusted resource as close as your phone Give us the opportunity to serve you

Contact these Mazda dealers for all your parts needs: Mastria Mazda 1545 New State Highway Route 44 Raynham, MA 02767 Phone: 877-272-8876 Fax: 508-802-4074 wholesale@mastria.com

34 January 2020

New England Automotive Report

Quirk Auto Dealers 115 E. Howard St. Quincy, MA 02169 Toll Free: 877-707-8475

NEAR0120.qxp_NEAR1014 12/13/19 3:39 PM Page 35

[NATIONAL] NEWS

AASP/MA Reports on Legislative Activity, Labor Rate Survey at AASP National Meeting During the recent 2019 SEMA Show, the National Board of the Alliance of Automotive Service Providers (AASP) hosted its semi-annual meeting where state affiliate representatives and other industry professionals gathered to discuss issues and possible solutions in regard to legislation, recruitment efforts and the growing need to repair vehicles according to OEM requirements. AASP/MA Executive Director Evangelos “Lucky” Papageorg shared that the association continues to push for passage of its Labor Rate Bill, which has been at the State House in various forms since 2007. The bill seeks to have an independent third party determine the average Labor Rates of the surrounding New England states and supply that AASP/MA Executive information to the Massachusetts Director Lucky Division of Insurance. The Papageorg at the AASP Commissioner would then take National Board Meeting in Las Vegas that rate and either increase it by three percent or drop it by three percent. Massachusetts currently has the lowest average Labor Rate in the nation of $38.28. AASP/MA is also pushing hard for legislation that would move the Auto Damage Appraiser Licensing Board (ADALB) away from the Division of Insurance. “Unlike a lot of other states, the adjustor and appraiser are two different entities in Massachusetts,” explained Papageorg. “We have licensed appraisers who are supposed to come out and negotiate all the correct aspects of the repair of the vehicle. [The ADALB] issues that license and [is a place] where complaints can be presented. Unfortunately, that Board – even though it doesn’t fall under the control of the Division of Insurance – is housed in the Division of Insurance, so we are looking to have it moved to the Department of Public Licensure. “Similar to a plumber, an electrician or even a hairdresser, that is the category [the ADALB] should be in,” he added. “In doing so, the Board would be

increased by two people – one from the Attorney General’s office and the other being a consumer affairs representative. We feel this would bode well when a conflict, question or complaint comes. [That complaint] will be looked at in a different light, again pushing for the fact that it is truly a consumer issue.” Papageorg was proud to report AASP/MA’s success with its Fall Meeting featuring Sam and Richard Valenzuela of National AutoBody Research, who gave a three-month report on the state’s first-ever Labor Rate Survey and presented a deep dive into BillableGenie. Nearly 130 body shops and industry representatives attended the meeting. “There was huge energy in the room. We had a resurgence of people interested in joining the association…For the first time in a long time, we had a lot of people coming together. It was a huge success.” Danny Gredinberg, administrator of the Database Enhancement Gateway (DEG), reflected on the free estimating resource’s growth over the past year. Since its inception, the DEG has received 14,422 Database Inquiries – an increase of 1,977 over last year. The breakdown among responses from the three Information Providers over the past year (as of early November) was 1,453 with CCC, 254 with Audatex and 270 with Mitchell. About 50 percent of inquiries to CCC have resulted in adjustments to its system, with Audatex and Mitchell having about a 28 percent change rate. Gredinberg also reported that he spent the past year working with the Society of Collision Repair Specialists (SCRS) - which supports the DEG along with AASP – to develop its new Blueprint Optimization Tool (BOT). He explained the easy-to-use estimate analysis tool, which immediately identifies labor operations, line items and customizable charges that could be overlooked on an estimate. With three clicks of a button, it will enter items into the estimate eliminating having to do so manually line by line. More information on AASP National can be found at autoserviceproviders.com. PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

MASSACHUSETTS

New England Automotive Report January 2020 35

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Get it right from the source.

Ford and Lincoln Mercury dealers are the one-stop source for all of your collision repair needs. When you need fascias, grilles, headlamps, wheels or any other Ford Motor Company Genuine Part, call your local wholesaling dealership. They’re a great souce for technical and repair information as well. Using Genuine Parts can help your body shop reduce cycle time, improve relationships with insurance companies and satisfy customers. So get everything you need in just one call to your one-stop collision repair resource – your local Ford or Lincoln Mercury Dealership.

Contact these Ford or Lincoln Mercury dealers for all your parts needs: Imperial Ford 6 Uxbridge Road Mendon, MA 01756 Toll Free Parts: 877-272-0332 Toll Free Fax: 877-800-6316 Call us for your wholesale parts needs

Sarat Ford Lincoln Mercury 245 Springfield Street Agawam, MA 01001 413-786-0430 Fax: 413-789-3715 www.saratford.com

Quirk Auto Dealers 115 E. Howard St. Quincy, MA 02169 Toll Free: 877-707-8475

New England Automotive Report

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Audi dealers strive to make you an Audi Genuine Parts fan •

Audi Parts professionals are your subject matter experts on collision parts, replacement components and mechanical items.

•

Many Audi dealers offer technical service support hotline access that can reduce your repair times and help you meet an on-time promised delivery.

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Installing Audi Genuine Parts contributes toward improved cycle time that helps make both your customer and their insurance company happier.

•

Regardless of the age of your customer’s Audi, Audi dealers have access to over 200,000 part numbers. No other supplier comes close.

Helping you do business is our business. Order Audi Genuine Parts from these select dealers. Audi Natick 549 Worcester Street Natick, MA 01760 www.bernardiaudi.com 800.247.3033 Fax: 508.651.6841

Audi Peabody 252 Andover Street Peabody, MA 01960 800.774.8411 Parts Direct: 978.605.2182 email: pwalke@iramotorgroup.com www.audipeabody.com

Mattie Audi 80 William S. Canning Blvd. Fall River, MA 02721 800.678.0914 Fax: 508.730.1283 www.mattieaudi.com

Hoffman Audi 700 Connecticut Blvd East Hartford, CT 06108 860.282.0191 Fax: 860.290.6355 www.hoffmanauto.com

New England Automotive Report January 2020 37

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[COVER] STORY By Joel Gausten

Lives and Lawsuits: Why OEM Procedures Can’t Be Ignored Matthew and Marcia Seebachan shared heartbreaking stories on how an improper repair nearly took their lives.

The debate is over: OEM-required/ recommended procedures are the only true standards of repair. This was the most critical takeaway at the 2019 SEMA Show in Las Vegas, which saw repair professionals and consumers alike take center stage to call for the industry to fully embrace how vehicle manufacturers – the true experts on the cars on the roads 38 January 2020

New England Automotive Report

today – say repairs should be performed at auto body facilities. John Eagle Collision Center in Dallas, TX learned this lesson the hard way. In 2017, the shop was hit with a multimillion-dollar legal defeat when the plaintiﬀs, Matthew and Marcia Seebachan, successfully sued it for improper repairs that led to near-fatal injuries in a subsequent collision. The couple – still clearly

suffering the physical and mental effects of the crash – appeared on stage at the Collision Industry Conference (CIC) during SEMA to share their perspectives on their accident, the lawsuit that followed and how their lives will never be the same again. Nearly a decade ago while they were traveling to spend the holidays with family, the Seebachans’ previously owned 2010 Honda Fit tboned a vehicle that had hydroplaned in front of them. Marcia was pulled from the Fit and was unconscious for four days. Matthew was trapped inside longer before being rescued; by then, flames had engulfed his legs. Although they were lucky to escape the wreck with their lives, both were left with devastating injuries. It was determined that John Eagle failed to follow OEM-recommended guidelines for replacing the roof on the Seebachans’ Fit, which had received hail damage while under the care of the previous owner. Instead of welding the roof back on, John Eagle used adhesive – a choice that led to devastation when the vehicle was later struck. Marcia, who works as a licensed clinical social worker, likened repairers ignoring OEM procedures to members of her profession disregarding a code of ethics that requires the use of evidence-based practices with clients. “It’s one thing for me to say that I think [someone’s] depression can be cured by eating three grapes a day, but where am I getting that from? Just because it’s my belief? It’s not ethical for me to just put that into practice with a client whose life may depend on that [recommendation] unless there’s evidence to support it.” Marcia still experiences frequent pelvic pain and ocular migraines and now has a stent in her aorta that needs to be assessed by a vascular

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surgeon on a regular basis. Matthew – who was employed as a pharmacist at the time of the crash – will likely never work again due to the severe extent of his injuries. As Marcia told this writer earlier this year, “My husband will always be in pain. We often get asked, ‘Has it gotten better? Will it get better?’ It’s not reasonable to assume it will. There’s a certain degree of pain that will always exist with the repair to his burns and the nerves involved in that…[He] has a lot of cognitive stuff related to all the medications he’s taken. He just can’t function on the same level as he could before.” The high emotional impact of the Seebachans’ appearance was felt during other discussions held at CIC. As previously covered in New England Automotive Report, a host of industry entities including CIC have spent several months attempting to eliminate the ambiguity surrounding terms such as “Opt-OEM,” “Alt-OEM” and “Surplus OEM.” During a presentation by the CIC Parts & Materials Committee, Co-Chair Aaron Schulenburg (Society of Collision Repair Specialists) revealed that work within the Committee – which has reached more than 100 regular participants – has been subject to ongoing and “defensive” internal disagreements. Currently, the Committee’s efforts in this area have been divided into two distinct working groups. The first – helmed by Parts & Materials Committee Co-Chair Ken Weiss (SSF Imported Auto Parts) and comprised of shops, insurers, parts suppliers and Information Providers – has introduced six unique definitions for products currently available in the marketplace: OEM Non-Dealer (a new vehicle manufacturer part that comes in vehicle manufacturer packaging, is available from a third-party supplier, is bought directly from the dealer by

a third-party seller and has a thirdparty warranty), Tier One-OEM (a new part manufactured by the vehicle manufacturer’s supplier, with identical specifications and engineering and no branding differences and sold in the Tier 1 company’s packaging by a thirdparty supplier with a third-party warranty), Tier One-OEM with Branding Differences (a new part built by the vehicle manufacturer’s supplier that has identical specifications and engineering but with different branding, third-party supplier delivery and a third-party warranty), Aftermarket Certified (a new, third-party supplied aftermarket manufacturer’s part with aftermarket packaging and a third-party warranty) and Aftermarket Non-Certified (a new, third-party supplied aftermarket manufacturer’s part with aftermarket packaging, a third-party warranty and no third-party certification). In an attempt to better streamline definitions, the second working group – led by Schulenburg, OEM representatives and Committee members who were not invited to participate in the first working group – offered only two. The first, for an “OEM part” is as follows: New part in the Vehicle Manufacturers’ (also referred to as OEM) authorized and official packaging, manufactured directly by the OEM or their approved, contracted supplier, distributed exclusively through the original equipment manufacturer’s official, authorized distribution network in the market specified by the OEM, warrantied, updated and supported exclusively by the OEM. The subcommittee then proposed a simple definition for “non-OEM” part: A new part that does not meet the definition of an “OEM part.”

The high emotional impact of the Seebachans’ appearance was felt during other discussions held at CIC. Not surprisingly, no clear consensus on the issue was reached on the CIC floor. This stalemate is indicative of a greater problem in the industry: While various stakeholders attempt to maintain their economic standing, customers and shops alike continue to face grey areas when it comes to appropriate repairs and parts usage. The Seebachans know all too well what can happen when profits are placed over safety, and the inter-industry’s struggle to fully come to terms with what’s necessary in the repair process – and how to easily define it – will surely carry on into 2020. As CIC Administrator Jeff Hendler opined from the CIC floor, “The Seebachans were sitting up on that stage, and they had no knowledge of the game that is being played in this industry from all sides about every part of a claim [being] settled. The consumer walks in the front door of a body shop [and asks], ‘Is it OEM or isn’t it?’ When you give them 17 different definitions…It’s either an OEM part or it’s a non-OEM part…You’re going to end up with two factions in this industry forever until we come to the understanding that the consumer has to understand what’s in the box.” Complete video of the Seebachans’ appearance at CIC is linked on the AASP/MA Facebook page (facebook.com/AASPMass). Comments are welcome. The video is also available at the Collision Industry Conference YouTube channel.

PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

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New England Automotive Report January 2020 39

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40 January 2020

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New England Automotive Report

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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. Mattie Volkswagen 80 William S. Canning Blvd. Fall River, MA 02771 800-678-0914 fax: 508-730-1283

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Quirk Auto Dealers 115 E. Howard St. Quincy, MA 02169 Toll Free: 877-707-8475

New England Automotive Report January 2020 41

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[LEGAL] PERSPECTIVE By James A. Castleman, Esq.

Three Recent Legal Issues Many of the ideas I get for topics for this column come from phone calls or emails from people in the collision repair industry. This month, I will address three different issues from recent correspondence. Issue 1: How Long Does an Appraiser Have to Personally Inspect a Damaged Vehicle? A shop owner I’ve known for many years wrote me an email a couple of weeks ago after he had been waiting way too long for an insurance appraiser to come out to view a car at his shop. He asked, “Where does it say that an insurer has to look at a vehicle within five days?” While I know many people within the industry think that it specifically says in the governing statutes or regulations that an insurer must inspect damage within five days, that is actually not true. There is nothing in the law directly saying that. Yet, by reading a few sections of the Auto Damage Appraiser Licensing Board (ADALB) regulations, it becomes clear that there is a five-day window for which

42 January 2020

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an insurance appraiser must inspect damage to a claimant’s vehicle. However, it is not within five days of when the claim is made, nor is it five calendar days. It is five business days. The starting point for analyzing the issue is in the ADALB regulation at 212 CMR 2.04(1)(a), which states, “Upon receipt by an insurer or its agent of an oral or written claim for damage resulting from a motor vehicle accident, theft or other incident for which an insurer may be liable, the insurer shall assign either a staff or an independent appraiser to appraise the damage. Assignment of an appraiser shall be made within two business days of the receipt of such claim. [Emphasis added.] However, the insurer may exclude any claim for which the amount of loss, less any applicable deductible, is less than $1,500.” So, in general, an

insurer must assign an appraiser to a claim within two business days of receipt of notice of the claim – no matter how that notice is received. The last paragraph of another part of the regulation, 212 CMR 2.04(1)(e), states, “The appraiser shall mail, fax or electronically transmit the completed appraisal within five business days of the assignment, or at the discretion of the repair shop, and shall leave a signed copy of field notes with the completed appraisal to be mailed or faxed within five business days of the assignment. The repair shop may also require a completed appraisal at the time the vehicle is viewed. [Emphasis added.] If the repair shop requires a completed appraisal, then the repair shop shall make available desk space, phone facilities, calculator and necessary manuals. A reasonable extension of time is permissible when intervening circumstances, such as the need for preliminary repairs, severe illness, failure of the parties other than the insurer to communicate or cooperate or if extreme weather conditions, make timely inspection of the vehicle and completion of the appraisal impossible.”

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So, there is a five-day limit within the regulation. But it is five days after the assignment of the claim to the appraiser, not five days from when the claim is made. It is five days for delivery of the appraisal, not for viewing the vehicle. And again, it is five business days, not five calendar days. The regulation 212 CMR 2.04(1)(d), however, also states, “The appraiser shall personally inspect the damaged motor vehicle and shall rely primarily on that personal inspection in making the appraisal.” [Emphasis added.] So, since the appraiser must personally inspect a damaged vehicle in order to write an appraisal, and since the appraisal must be completed within five business days of the assignment to the appraiser, it is clear that the appraiser must view the damage within that same five days in most cases. And, in fact, if the appraiser waits until the fifth day to view the vehicle, the regulation still requires that the appraiser finish the appraisal that same day and that the appraiser fax or email it that day to the claimant’s chosen repair shop. I made some calculations and discovered that under normal circumstances, an appraiser could have up to 11 calendar days from the date that a claim is made until they must view a vehicle and write their appraisal depending on the day of the week a claim is made. As an example, if a claim is made on a Friday, then there are two business days for the insurer to assign the claim to the appraiser, plus five business days from assignment to write and deliver the appraisal. There are also four intervening weekend days – the two weekend days immediately after the Friday that the claim is made, plus the next two weekend days. That’s 11 days. If there is also a Monday holiday following either weekend, then it becomes 12 calendar days. If there are two consecutive Monday holidays (e.g., if Christmas and New Year’s Day are on Monday), then it would be 13 calendar days.

Do not forget that the regulation also allows for a reasonable extension of time if there are certain “intervening circumstances.” So, hopefully, when that claim is made on the Friday before a Monday Christmas, there is no blizzard the day following New Year’s Day. If there is, hopefully the assigned appraiser does not have a heart attack shoveling the snow. That car could be sitting in your shop for a month before someone has to come out to view the damage. Nevertheless, remember that the general rule is that an insurance appraiser must view the damage and write and deliver their appraisal within ﬁve business days of being assigned a claim. Also, please understand and remember that the time that an appraiser has for inspecting additional damage when a supplement request is made is much shorter. When a supplement request is made, 212 CMR 2.04(1)(h) states, “The insurer shall assign an appraiser who shall personally inspect the damaged vehicle within three business days of the receipt of such request. [Emphasis added.] The appraiser shall have the option to leave a completed copy of the supplemental appraisal at the registered repair shop authorized by the insured or leave a signed copy of his or her ﬁeld notes with the completed supplement to be mailed, faxed, electronically transmitted or hand-delivered to the registered repair shop within one business day.” Again, however, “A reasonable extension of time is permissible when intervening circumstances, such as the need for preliminary repairs, severe illness, failure of the parties other than the insurer to communicate or cooperate or extreme weather conditions, make timely inspections of the vehicle and completion of the supplemental appraisal impossible.” Also remember that the same time limit for completing the supplemental appraisal applies – even if a request is

made that the “expedited” appraisal process be used. Issue 2: Qualifying for Waiver of Deductible Coverage This one falls under a special category: “After 40 years of representing collision repair shops, I thought I had heard everything, but I guess not.” I got another email from a shop owner, which I followed up with a phone call. The matter involved a customer who had waiver of deductible coverage but still had to pay his deductible under very questionable circumstances. It seems that the customer had been driving down the street when he saw a child on a bicycle crossing the road. He stopped to let the bicycle pass, but another driver pulled around him on his right and hit the bike. The child was knocked off the bike, which went flying and crashed down onto the customer’s car. Hopefully, the child was not seriously hurt. The same could not be said for the customer’s car. As it turned out, both cars involved in the incident were insured by the same insurer (which shall go nameless for now – but which is one known within the collision repair industry to be difficult to deal with). It looked like the shop’s customer should be fully covered for his loss, either by the insurer paying as the third-party carrier or through his own collision and waiver of deductible coverage. The insurer refused to pay the deductible, however, and the customer called to find out why. The insurance adjuster’s response was, “We aren’t going to pay it. You need to go after the kid on the bike.” To me, this was absurd. Generally, when a car hits a bicycle under these particular circumstances, there is no question that the vehicle operator was negligent and caused the accident. Further, between the customer and the operator of the other car, it would seem clear that the customer New England Automotive Report January 2020 43

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[LEGAL] PERSPECTIVE was less than 50 percent at fault. Even if the insurer could have made the argument on a third-party claim that the shop’s customer had been negligent to some degree so that the insurer did not have to pay 100 percent of the third-party claim, the waiver of deductible coverage – by statute – is supposed to pay in full so long as the person with the coverage is not more than 50 percent at fault. If this customer ends up suing the insurer in small claims court, I want to be there with a front-row seat when the insurer’s attorney tries to make the ridiculous argument to the judge or magistrate that the shop’s customer should have gone after the kid on the bike.

In this particular case, the shop also happened to have access to NADA valuation information. Lo and behold! The insurer’s NADA valuation was about $1,000 less than the shop’s NADA valuation. Upon inquiry, it turned out that NADA was selling a diﬀerent service to the insurer than it made available to the shop. Somehow, those two services came up with diﬀerent valuations, even though both services were supposed to be using the same database. By the way, the shop also sought out a CARFAX valuation, which was an additional $1,000 higher than the shop’s NADA valuation.

Issue 3: Beware of Insurer ACV Valuations, Even If the Insurer is Using the Same Source that You Use This last issue is merely cautionary. It was brought to my attention by a shop owner whose business is in Rhode Island, not Massachusetts. This shop owner had a customer with an older vehicle that suﬀered damage that brought it close to being a total loss. The vehicle owner’s insurer had stopped using CCC Information Services to determine the actual cash value (ACV) of its insureds’ vehicles because of the controversy surrounding CCC valuations. It now was using a service that it purchased from the National Automobile Dealers Association (NADA), which is seen by many as a more reliable source.

Conclusion I never know where my next topic is going to come from for my monthly Legal Perspective column. Do you have a legal question relating to the collision repair industry, or have you run into an issue that might have legal signiﬁcance and be of interest to the industry? If so, send me an email. You might just ﬁnd the answer to your question or a reference to your issue when you pick up the next edition of New England Automotive Report.

PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

MASSACHUSETTS

Attorney James Castleman is a managing member of Paster, Rice & Castleman, LLC in Quincy, MA. He can be reached at (617) 4723424 or at jcastleman@prclawoﬃce.com.

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New England Automotive Report

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It Takes Genuine Honda Collision Repair Parts To Achieve a Genuine Honda Fit. Honda collision repair parts are engineered and manufactured to Honda standards. In the collision-repair business, time is money, and you canâ&#x20AC;&#x2122;t waste time on parts that almost fit properly. Use Genuine Honda replacement parts. Your reputation depends on it. For Genuine Honda parts, contact these Authorized Honda dealers.

Bernardi Honda 960 Worcester Road Natick, MA 01760 Parts Direct: 800-247-3033 FAX: 508-651-1220 www.bernardihonda.com

Lia Honda of Northampton 293 King Street Northampton, MA 01060 Toll Free: 800-369-7889 Direct: 1-413-586-6043 FAX: 1-413-585-0502 www.liahondanorthampton.com

Honda North 382 Newbury Street Danvers, MA 01923 Toll Free: 800-882-9797 FAX: 978-774-9483 e-mail: eadams@iclautos.com www.hondanorth.com

Kelly Honda 540 Lynnway Rt. 1A Lynn, MA 01905 Parts Direct: 800-779-7466 FAX: 781-595-2898 e-mail: mpsomosjr@kellyauto.com

Honda of Enfield 20 Palomba Drive Enfield, CT 06082 Toll Free: 800-222-6632 FAX: 860-253-5419 www.liahondaofenfield.com

Schaller Honda 1 Veterans Drive New Britain, CT 06051 Toll Free: 800-382-4525 Direct: 860-826-2080 FAX: 860-826-2083 e-mail: jkiniry@schallerauto.com www.schallerauto.com

Lundgren Honda of Auburn 525 Washington Street Auburn, MA 01501 Toll Free: 800-777-2044 FAX: 508-721-0872 e-mail:pmccarthy@lhonda.com www.lhonda.com

New England Automotive Report January 2020 45

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[NATIONAL] NEWS continued from page 28

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Away from the Convention Center, many collision repairers took in other events held throughout the week, including the ﬁnal Collision Industry Conference (CIC) of 2019. Like many who attended the day-long forum, AASP/MA vendor Bill Enross (cPrax Marketing, Inc.) was moved by the onstage interview with Matthew and Marcia Seebachan, the plaintiﬀs in the history-making lawsuit against John Eagle Collision in Texas. “To just sit there, tears streaming down my face, listening to these two people who had their lives changed…They will never be the same. Some of us think we are having a bad day, and then you listen to Matthew speak or Marcia speak about Matthew. A good day for him is when the pain may be bearable.” (Papageorg shares some of his thoughts on this unforgettable presentation in his Executive Director’s Message on page 12. For a recap of the Seebachans' CIC interview, please see cover story on page 38. ) Once again, SEMA proved to be one of the most exciting industry events of its kind, leaving exhibitors and attendees from around the globe with an unforgettable experience. PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

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