We provide the highest level of customer-friendly service through our knowledgeable and helpful personnel!
WE WANT TO
EARN YOUR BUSINESS!
COLONIAL NISSAN 104 Mystic Avenue Medford, MA. 02155 Phone Number: 781-395-3025 FAX Number: 781-475-5063
COLONIAL HONDA OF DARTMOUTH 225 State Road (Rte. 6) Dartmouth, MA. 02747 Parts Direct: 508-997-2919 FAX Number: 508-730-6578
CITY SIDE SUBARU 790 Pleasant Street Belmont, MA. 02478 Phone Number: 617-826-5013 FAX Number: 617-489-0733
COLONIAL FORD OF PLYMOUTH 11 Pilgrim Hill Road Plymouth, MA. 02360 Phone Number: 800-233-8109 FAX Number: 508-830-1658
NORTH END SUBARU 757 Chase Road (Rte. 13) Lunenburg, MA. 01462 Phone Number: 877-289-0053 FAX Number: 978-582-9843
COLONIAL CHRYSLER JEEP DODGE-RAM 24 Coolidge Street (Rte. 62) Hudson, MA. 01749 Phone Number: 978-568-8000 FAX Number: 978-562-1213
COLONIAL FORD OF MARLBOROUGH 428 Maple Street Marlborough, MA. 01752 Phone Number: 888-460-1125 FAX Number: 508-460-3464
COLONIAL SOUTH CHRYSLER JEEP DODGE-RAM 42 State Road (Rte. 6) Dartmouth, MA. 02747 Phone Number: 508-984-1900 FAX Number: 508-996-5801
COLONIAL CADILLAC 201 Cambridge Road Woburn, MA. 01801 Phone Number: 781-935-7009 FAX Number: 781-933-7728
NORTH END MAZDA 757 Chase Road Lunenburg, MA. 01462 Phone Number: 800-322-1241 FAX Number: 978-582-9841
COLONIAL VOLKSWAGEN COLONIAL SOUTH CHEVROLET 89 Turnpike Road (Rte. 9) 361 State Road (Rte. 6) Westborough, MA. 01581 Dartmouth, MA. 02747 Phone Number: 508-996-6266 Phone Number: 888-322-6570 FAX Number: 508-979-1219 FAX Number: 508-616-0445 COLONIAL VOLKSWAGEN OF MEDFORD 162 Mystic Avenue Medford, MA. 02155 Phone Number: 781-475-5200 FAX Number: 781-391-3506 WELLESLEY VOLKSWAGEN 231 Linden Street Wellesley, MA. 02482 Phone Number: 800-228-8344 FAX Number: 781-237-6024 Contact: Dan Bettencourt / Wholesale Parts Manager
COLONIAL CHEVROLET 171 Great Road Acton, MA. 01720 Phone Number: 800-787-2787 FAX Number: 978-263-8587 COLONIAL WEST CHEVROLET 314 John Fitch Highway Fitchburg, MA. 01420 Phone Number: 978-345-5532 FAX Number: 978-345-1152
• We carry over $2,000,000 in collision & mechanical parts • Daily UPS shipping available • Servicing Massachusetts, Rhode Island and New Hampshire • We build our reputation on providing you the best SERVICE!!
Place any order online with our parts order form at www.buycolonial.com
Create Your Ultimate Equipment Package. Sale Ending Soon! WORKS TA STRUCT TIONS AND U R AL B ENCHES
ELECTR ONIC MEASU RING SY STEMS
Pick one or more from each category and save even more!
Touch
106 EXT
MULTIBENCH
Structural Repair Workstations
Structural Straightening Bench
REPAIR
SYSTEM S
Electronic Measuring Systems
PULL UP! Light
PULL UP! Full
PULL UP! Standard
PULL UP!
WELDIN G MACH
INES
Repair Systems
Q5.1
Q5.2 ONE
Q Series
Q5.2 14,500A
Welding Machines
Welding Machine
Learn More Now Spanesi Americas, Inc. 123 Ambassador Dr. STE 107 Naperville, IL 60540
224-SPANESI (224-772-6374) www.spanesi-americas.com facebook.com/spanesiamericas
4 July 2022
New England Automotive Report
July 2022 • Volume 20, No. 7
DEPARTMENTS
EXECUTIVE DIRECTOR’S MESSAGE 6 | Welcome to 2003 by Evangelos “Lucky” Papageorg
CONTENTS NATIONAL FEATURE
LOCAL NEWS 12 | Auto Sense – Airing Soon on Public Access TV! 14 | The Best We’re Going to Get: ADALB Votes to Strengthen Regulation 212 CMR 2.00 LOCAL FEATURE 16 | Racing Through the Sky: Remembering Former MABA Executive Director Chris Muise by Chasidy Rae Sisk
VENDOR AFFINITY PROGRAM SPOTLIGHT 20 | Wreck Check of Boston
24 | Industry Leaders Applaud AASP/MA’s Efforts to Unite and Take a Stand by Chasidy Rae Sisk
COVER STORY
by Alana Quartuccio Bonillo
LEGAL PERSPECTIVE 34 | A Problematic Decision Regarding Storage Payments by James A Castleman, Esq.
ALSO THIS ISSUE 7 | AASP/MA MEMBER APPLICATION 18 | AASP/MA GOLF OUTING SAVE THE DATE 21 | AASP/MA VENDOR AFFINITY PROGRAM SPONSORS
28 | AASP/MA Takes Action: Hundreds Rally for Labor Reimbursement Rate Reform by Alana Quartuccio Bonillo
New England Automotive Report
July 2022 5
EXECUTIVE DIRECTOR’S MESSAGE
Welcome to 2003 EVANGELOS “LUCKY” PAPAGEORG
Some forward motion is going on, and it is happening because of the mounting pressure from shops across the state on many different fronts and in different ways. Our message is strong, and it’s being heard loud and clear. Enough is enough! To quote the 1976 movie Network, “I want you to get up now. Sit up. Go to your windows. Open them and stick your head out and yell – ‘I’m as mad as hell, and I’m not gonna take this anymore!’ Things have got to change. But first, you’ve gotta get mad!... You’ve got to say, ‘I’m as mad as hell, and I’m not gonna take this anymore!’ Then, we’ll figure out what to do about the depression and the inflation and the oil crisis. But first, get up out of your chairs, open the window, stick your head out and yell, and say it: ‘I’M AS MAD AS HELL, AND I’M NOT GOING TO TAKE THIS ANYMORE!’” Fast-forward 46 years and that is exactly what over 300 shop owners, technicians and students did May 18 on the front steps of the State House. Just like in 1976, we are facing the issues of inflation, soaring gas prices and a multitude of other issues which have the ability to take the attention away from the crisis in the collision repair industry. We cannot let that deter us or allow our concerns to be put on a back burner in the eyes of our legislators or the public. We have to continue to apply pressure in a sustained manner. We must keep yelling, “I’M AS MAD AS HELL, AND I’M NOT GOING TO TAKE IT ANYMORE!” Some insurers are listening and are attempting to pacify a
STAFF
AASP/MA EXECUTIVE COMMITTEE
PUBLISHER
President Kevin Gallerani
Thomas Greco | thomas@grecopublishing.com
SALES DIRECTOR Alicia Figurelli | alicia@grecopublishing.com
EDITORIAL/CREATIVE COORDINATOR Alana Quartuccio Bonillo | alana@grecopublishing.com
OFFICE MANAGER Donna Greco | donna@grecopublishing.com
PRODUCTION COORDINATOR Joe Greco | joe@grecopublishing.com
MANAGING EDITOR Chasidy Rae Sisk | chasidy@grecopublishing.com
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
Vice President Matthew Ciaschini
Treasurer Dana Snowdale
Secretary Gary Cloutier
AASP/MA STATEWIDE DIRECTORS Director At-Large Adam Ioakim
AASP/MA DIRECTORS
Legislative Director At-Large Tom Ricci
ZONE 1 Mike Penacho Dan Wenzel John Studer
ZONE 2 Ray Belsito Joshua Fuller Brenda Lacaire
Affiliate Director Rick Fleming
Affiliate Director Bill Spellane
ZONE 3 Andrew Potter Brian Stone
AASP/MA ADMINISTRATIVE OFFICE AASP/MA Executive Director Evangelos “Lucky” Papageorg
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 © 2022 by Thomas Greco Publishing, Inc. Images courtesy of www.istockphoto.com
6 July 2022
segment of the collision repair industry with “token” increases in the labor reimbursement rates. I will agree that the recent labor reimbursement rate increase by USAA insurance surpasses the menial $1 and $2 increase insurers have “given” collision repairers in the past. USAA’s recent increase to $50/hour on body and paint, $52 on frame and $58 on mechanical (while “promising” to increase the rate by an additional $4/hour at the first of the year) seems like a boon to the less informed, and we are not unappreciative; however, we would be remiss if we did not say, “Thank you USAA and welcome to the year 2003!” Also, to Plymouth Rock who increased their labor reimbursement rate to $45/hour as of June 1: “Thank YOU and welcome to the first quarter of the year 2000!” Yes, that is great, but it still leaves us far behind where the labor reimbursement rate should be, had it only kept pace with the Consumer Price Index (CPI) – roughly 20 years and $24 behind (based on the CPI calculator on the NABR website)! It also begs the question, “What are the other insurers waiting for?” I would hazard a guess that they are waiting to see how much pacification it will take before they and their insureds stop hearing, “I’M AS MAD AS HELL, AND I’M NOT GOING TO TAKE IT ANYMORE!” The most important question is: What will we, the collision repair industry, do now and going forward? Will we allow the artificial stagnation and suppression of the labor reimbursement continued on pg. 8
New England Automotive Report
AASP/MA Administrative Assistant Alana Bonillo
WWW.AASPMA.ORG
Collision Director At-Large Rob DelGallo ZONE 4 Kevin Kyes Jim Marshall Paul Tuscano Affiliate Directors Frank Patterson Jeff White Don Dowling P. O. Box 850210 Braintree, MA 02185 617-574-0741
Membership Application 2022-2023
AASP-MA P.O. BOX 850210 Braintree, MA 02185 Phone: 617-574-0741 Fax: 973-235-1963 Email: admin@aaspma.org
Please complete this form and return to our office via mail, email or fax with your dues payment. Thank You! BUSINESS INFORMATION Massachusetts Shop Registration # __________________
Total number of Staff (Techs, office, Mgrs)________
Company’s Official Name: ________________________________________________________________________________________________ Business Physical Address: _______________________________________________________________________________________________ Business Mailing Address (If Different): ________________________________________________________________________________ Telephone Number: (______)-________-___________ Fax: (______)-________-___________ DUES STRUCTURE. Collision Shop Annual Dues: $495 / 12 Months* PRIMARY BUSINESS CONTACT Name: _______________________________________________________________________________________________________________ Email: _______________________________________________________________________________________________________________
YES � Please list my business as an AASP/MA member in good standing on the AASP/MA website for consumers to consider using for the collision repairs and assistance with the claims process. I understand this is a member benefit (_________ initials Date ___/____/2022) Yes � Please send me information regarding the following MONEY SAVING BENEFITS: � Dental plan � Healthcare plan � Credit card processing � Grant writing/training � Google presence optimization � All five PLEASE ENCLOSE PAYMENT WITH YOUR MEMBERSHIP APPLICATION Check# : _______________ (IF collision shop please note your RS# on the memo line of the check) CC #: ______________________________________________________________________
OR
EXP: ________/___________ CID: _________________
Billing Address: ______________________________________________________________________________________________________________ Name On Card: _____________________________________________ Signature: ____________________________________________________ Note: A 4 percent convenience fee will be charged for membership renewal via credit card transaction
I hereby make this application for membership with the Alliance of Automotive Service Providers of MA (AASP/MA) for membership dues 2022-2023 as provided for in this contract. *Membership Dues are for a twelve-month period commencing on your anniversary month of membership.
REV 6/22 New England Automotive Report
July 2022 7
EXECUTIVE DIRECTOR’S MESSAGE continued from pg. 6 rate to be repeated for another decade and a half, as we have experienced since 2008? Will we allow ourselves to once again be pacified as the cost of running our businesses increases at a steady pace? Will we continue to expect our aging technicians to attempt to work on technologically advancing vehicles without proper equipment and training? Will we continue to be unable to compete with lesser industries who can afford to pay their employees far better wages for lesser knowledge and expertise? Will we continue to bear the liability while insurers wallow in record-breaking profits? I, for one, certainly hope not…at least not without a continued fight and our ongoing shouts of, “I’M AS MAD AS HELL, AND I’M NOT GOING TO TAKE IT ANYMORE!” More and more collision repair shop owners have come to realize that if they are truly going to survive – and more importantly thrive – in the future, they need to set the foundation for that future today. Collision repairers understand that just like the medical profession’s practice of “co-pay,” they too must pass on the nonreimbursed portions of their repair plan costs to the vehicle owner. Just like in the medical profession, insurers will try to impose their will on the collision repairer with their standard, “We do not pay for that.” Well, someone has to! That someone can no longer be the
collision repairer! The shops who come to this realization sooner rather than later will have an advantage. They will be able to pay their technicians better and thereby attract the dwindling number of skilled technicians to their shops. They will be able to entice technicians who have left the industry to come back to do the work they love and be able to earn a decent living. The shops being properly reimbursed because of collecting a “co-pay” will be able to bring in young, eager-to-learn talent and train them to perform proper repair techniques using up-to-date equipment. These shops will be the shops where technicians want to work. These shops are where consumers will want to get their vehicles repaired because they will be receiving the best service, and they’ll understand that “the best” comes at a cost insurers are unwilling to cover. This is already happening more and more. Not only should you continue yelling, “I’M AS MAD AS HELL, AND I’M NOT GOING TO TAKE IT ANYMORE!,” but you should also be taking the proactive steps to advocate 8 July 2022
New England Automotive Report
We are facing issues which have the ability to take the attention away from the crisis in the collision repair industry. We have to continue to apply pressure in a sustained manner. for your business, your employees and your part in the future of what is a great and essential industry. You can choose to take what appears to be the easy route, “partnering” with insurers who only want to use you to control an industry so that they can continue their profiteering on the backs of hard-working individuals and unsuspecting vehicle owners…or you can take a stand.
Or you can join those who will ultimately be successful because they rely on their abilities and business savvy and they believe in themselves. You CAN be one of those who will continue to make things happen…instead of merely waiting or watching from the sidelines, hoping something happens. YOU could be someone who will no longer have to yell, “I’M AS MAD AS HELL, AND I’M NOT GOING TO TAKE IT ANYMORE!” because you will be getting paid 2022 labor reimbursement rates and not 2003 rates.
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.
New England Automotive Report
July 2022 9
10 July 2022
New England Automotive Report
New England Automotive Report
July 2022 11
[LOCAL] NEWS
Auto Sense – Airing Soon on Public Access TV! AASP/MA recognizes that a well-informed public is the key to many of its endeavors, so the association will soon be taking its educational programming to a whole new level by starting Auto Sense, a TV show hosted by AASP/MA Executive Director Lucky Papageorg debuting in early July. “The TV show is going to cover everything from insurance to ADAS, from repair procedures to legislative initiatives, as we attempt to educate the motoring public,” Papageorg says. “It will provide an opportunity to do in-shop recordings and demonstrate the extent of equipment shops must invest in to help consumers understand everything we undertake to ensure the safe repair of their vehicle.” Auto Sense will debut on Braintree’s BCAM TV in early July; however, it will also be distributed to nearly 350 additional public access stations across Massachusetts that may elect to broadcast it to their local communities as well, according to Papageorg. Contact your local station to request they add it to the programming in your area.
12 July 2022
New England Automotive Report
PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
New England Automotive Report
July 2022 13
[LOCAL] NEWS
The Best We’re Going to Get: ADALB Votes to Strengthen Regulation 212 CMR 2.00 After more than a year of meetings focused predominantly on reviewing the key issues raised in a 2016 letter from the Division of Insurance (DOI) regarding proposed and submitted amendments to 212 CMR 2.00, the Auto Damage Appraiser Licensing Board (ADALB) seems to have finally worked out all the points of contention in the regulatory language during its May 17 meeting, though a final vote to submit those amendments to the DOI will not occur until the Board’s next meeting. The Board revisited the final two sections of 212 CMR 2.00 which have spurred controversy between the ADALB’s automotive and insurance representatives: 2.04(1)(e) and 2.04(2). Reading aloud, Board member Peter Smith (MAPFRE) reviewed the revisions to the temporary licensing provision identified in 212 CMR 2.04(2). Board member Bill Johnson (Pleasant Street Auto; South Hadley/ Belchertown) questioned whether the ADALB would need to convene to vote to authorize the chair to grant said temporary licensure, suggesting that the regulation be revised to grant authorization to the chair to grant temporary licenses up to 60 days, leaving veto power in the Board’s hands. A motion to approve the revision passed unanimously. Board member Samantha Tracy (Arbella Insurance) then proceeded with the review by reading the proposed amendments to 212 CMR 2.04(1)(e). Board member Rick Starbard (Rick’s Auto Collision; Revere) expressed concern about whether insurers would agree that certain costs are associated with the repair job. “The only way it’s not considered overhead is if the insurance company appraiser agrees that it is a cost associated with the job, and when the shop buys two parts and puts that money out, they don’t care if you can get your money back or not on that first bad part. And if they don’t agree that it’s a cost, well guess what? It’s not a cost. This doesn’t address the problem at all.”
“It gets to the point where we as shop owners have to say, ‘Fine, you pay what you want, and I’m going to bill the customer,’” Johnson interjected. “Locks are made for honest people, and if somebody’s not going to negotiate in good faith, it doesn’t matter what we put in here – they’re going to figure something out. But we as appraisers, on the insurance and collision side, need to figure it out. Otherwise, the only one who suffers is the consumer. “This is the best we’re going to get,” he added. “We cannot legislate common sense.” AASP/MA Executive Director Lucky Papageorg agreed with Starbard’s assessment: “You are here as a Board to enforce the regulations as they are, and if the regulations are creating problems, you should be changing the regulations to clarify everything so they’re not ambiguous and so we’re not wasting time going back and forth. You’ve taken the teeth out of what was a decently written piece of regulation. It had to have the ambiguity taken out, but you’ve gutted it.” After some continued debate, the Board voted in favor of the amendments to 212 CMR 2.04(1)(e) with Starbard casting the only dissenting vote. Attorney Michael Powers was tasked with incorporating the most recent changes into the revised version of the regulation that has already been agreed upon, and the ADALB is scheduled to cast a final vote to approve the amendments at their next meeting which will be held June 21. AASP/MA members are strongly encouraged to listen to the recording of the May 17 meeting in the Members Only section of aaspma.org for a glimpse into the inner workings of the ADALB. The original proposed revisions can be found on the May meeting agenda, available at bit.ly/ADALB0522. More detailed coverage of this meeting appears in the June issue of the Damage Report members only newsletter. PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
KEEP IT GENUINE INSIST ON GENUINE GM PARTS
Boch Chevrolet 381 Boston Providence Hwy Route 1, The Automile Norwood, MA 02062 Parts Line: 781-762-9210 Toll Free: 800-559-9210 bchwholesale@boch.com
Contact Boch Chevrolet for your GM Parts needs!
14 July 2022
New England Automotive Report
QUALITY STARTS WITH GENUINE GENESIS PARTS AND ACCESSORIES. Genesis of Norwood 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
July 2022 15
[LOCAL] NEWS
Racing Through the Sky: Remembering Former MABA Executive Director Chris Muise Caring. Dedicated. Energetic. Passionate. Auto body veterans repeated these adjectives many times as they reflected on the legacy and impact left on the industry by Chris Muise, former executive director of the Massachusetts Auto Body Association (MABA), who passed away on January 1. “Chris was a wonderful guy who really believed in the association and the industry,” Fred DiCesare (Atlas Auto Body; Revere) recalled. “His job was to meet members and ignite them, and that’s exactly what Chris did. He fought for the little guy, and he always stood up for what he believed in. That means a lot, and we all respected him for that.” Rick Starbard (Rick’s Auto Collision; Revere) first met Muise in the 1980s when they met through the association. “He had a background in the industry and a real passion for cars, and when he came on as the executive director of MABA, he just started visiting shops in different parts of the state and connecting us all. He worked hard to get shops on the same page to come together, to learn together and to stop competing with each other. He taught us that we were ‘colleagues, not competitors.’ Our industry was the strongest I’ve ever seen, and that was due to Chris and his passion.” “Chris was influential in bringing MABA back to life; he really jump started the association,” stressed retired shop owner Tom Rawson. “He was a hard worker who passionately advocated for the collision industry.” Early in life, Muise worked in his older brother Dave’s shops before studying business management, but his passion for everything automotive led him right back to the shop. “Mechanics weren’t his forte, but Chris was a great salesman who was good with people, so he ran my office for a while,” praised Dave Muise (Dave’s Auto Body; Woburn). “After working for me, he found his niche with MABA and got involved with a lot of the Courtesy of Bonnie Muise
16 July 2022
New England Automotive Report
shops. A natural politician, he could talk the socks off anybody, and that’s what made him good at what he did. It was what he was meant to do.” Inspiring others was another of his strengths. AASP/MA Executive Director Lucky Papageorg first met Muise while managing a dealership in Quincy. “He came into the shop and started talking to me about the association. At the time, I knew nothing because I was so new in the industry, but he roped me into convincing the dealership to join. His energy and care for the industry were contagious. I hope I’m making him proud because I wouldn’t be in this role if it wasn’t for him. He taught me the importance of believing in what you’re doing and putting everything you have into it. I owe him a lot.” “Chris definitely left his mark on the auto body industry,” DiCesare emphasized. “Our industry’s issues have reached crisis level, and it’s all coming to a head now, but things are finally changing. Chris laid that groundwork years ago, and he deserves some of the credit. It took a long time to get here, but his actions were not in vain.” “He paid attention and knew what he was talking about because he read all the articles in all the magazines; he researched this industry constantly,” the elder Muise added. “Chris knew what he was talking about, and when I attended trade shows and meetings with him, I enjoyed watching how people listened to him. He was my little brother, and I miss him every day.” Muise’s passion for the automotive industry was only surpassed by his dedication to his family: Bonnie, his wife of 39 years, and their five sons. “My husband spent a lot of time at home with our kids,” she recalled. “He was a strict father, but he was a good father. He stayed involved with their sports teams when they were younger, and all the boys learned how to work on cars. Our 20-year-old son constantly tells me, ‘I can fix this; Dad showed me how.’ It’s amazing how much time he spent with them and how much he taught them.” Once the Muises’ eldest son grew up, the couple added to their family through adoption, and shortly after adopting their
by Chasidy Rae Sisk
third child (their fourth son overall), Mrs. Muise fondly remembers receiving a call at work: “He told me, ‘There’s another boy. He’s 13 years old, and he’s a really good kid who’s having a tough time.’ I told him that four boys were enough…We ended up adopting a fifth son, Tommy, who reminded us a little of Chris when he was younger.” Muise’s love for children expanded beyond his own household as well. One year, the Muises built a float for a Boy Scout parade, but that’s not his wife’s favorite memory. “Before we had kids, he used to dress up as Santa and visit the children at the hospital where I worked,” she reminisced. “One year, a little girl in the ICU had her kidneys out and was put on a respirator because she wasn’t doing well. She woke up after the new year and asked if she missed Christmas; she wanted to see Santa, so Chris got dressed up again and visited her. He always had a soft spot for kids.” Through his friendship with Dave Muise, Rawson first met Chris when they were little more than kids themselves. “Chris was the typical pain-in-the-butt little brother who wanted to hang with the big boys, but he was an all-around nice guy who would do anything for anyone. He loved his family, and he loved life. He was also goofy and clumsy. Chris was the type to fall into a bucket of roses and come out smelling like manure,” Rawson chuckled as he recalled the time a teenage Muise fell and gashed his
arm on a quarter panel. “He was absolutely a klutz,” Mrs. Muise agreed. “He would walk through the yard and twist his ankle. But he was also fun and was known to surf on picnic tables on occasion.” Given his passion for the automotive industry, it’s not surprising that Muise was an avid fan – and participant – at the local dragway. In fact, he took his wife to the New England Dragway on one of their first dates! Muise spent much of his later years building and racing drag cars. “Racing was a dream of his, and after he retired, he was so happy when he finally got a stock car of his own about four years ago,” Rawson mused. “Chris took an old car and brought it back to life. His son, TJ, took on the role of crew chief, and they really enjoyed racing together. The guys at the track gave him advice to cut his times, so he was becoming pretty well-known and successful at the dragway. Chris was living the best part of his life.” On July 31, the Orientals Hot Rod Club will honor Muise with a memorial event at the New England Dragway. “I didn’t know anyone Chris didn’t like or who didn’t like him,” Rawson added. “He loved the automotive world and spent his entire life in it. We’ll miss him in this industry, but I know he’s racing on that dragway in the sky.” PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
New England Automotive Report
July 2022 17
Y TR
US
IO
LIS
RS
E UM
D
AN
E TH
L CO
ND NI
S
ON GC
IN CT
E OT
PR
TTS
USE H C SSA
MA
AASP/MA
GOLF TOURNAMENT
2022
Wednesday, September 14 at Heritage Country Club in Charlton
SAVE THE DATE! 18 July 2022
New England Automotive Report
LOMBARD
LE EQUIPMENT INC.
$0--*4*0/ 3&1"*3 4:45&.4
After 23 years, Lombard Equipment Inc. continues our liquidation sale of Pro Spot equipment as we transition to GYS. EQUIPMENT AVAILABLE: • • • • • • • • •
]
i4 SPOT i4s WELDERS i5 MIG Sp2 WELDERS Sp5 Aluminum Weld station PR5 ] RIVET GUN W/ OPTIONS Fume Extractors Glue Guns
]
SAVE THOUSANDS CALL NOW!
(800) 422-PULL
CONTACT US TODAY! MASSACHUSETTS LOCATION Serving all of New England
Lombard Equipment, Inc. 157 Mendon St. Bellingham, MA 02019 (800) 422-PULL FLORIDA LOCATION Serving all of Florida and Georgia
Lombard Equipment South, LLC 10750 Endeavour Way Seminole, FL 33777 (888) 440-WELD VIRGINIA LOCATION Serving VA, NC, SC, GA, DE, and MD
Lombard Equipment, LLC 2102 N. Hamilton St. Richmond, VA 23230 (833) MIG-WELD New England Automotive Report
July 2022 19
[VENDOR AFFINITY PROGAM] MEMBER SPOTLIGHT by Alana Quartuccio Bonillo
More often than not, consumers are completely unaware of what their vehicle is worth after an accident. It’s also likely that consumers are unaware of any hidden damage that could remain after their vehicle has been repaired. That’s where Wreck Check of Boston comes in. “I wanted to help consumers get what they are entitled to, and that is why I started Wreck Check of Boston," says Bob Collins, owner of the assessment business, which has been going strong since 2000. Collins had previously spent 25 years as a collision repair technician doing everything from frame repair to custom painting. He then went on to work at a dealership where he obtained his appraisers license and began to inspect cars and write estimates. “People would bring cars into the dealership, and after I inspected them, I’d find issues that had me asking myself ‘Who fixed this car?’ I saw it all the time and decided I had to start something to help the consumers.” With consumers’ safety in mind, Collins worked to identify safety flaws and defects, and he would write up reports for lawyers. At the same time, he’d also assign values to cars. Repairers work to return a car to pre-accident condition; however, that does not eliminate what is known as diminished value, according to Collins. “Even if the repairs are done correctly, the car will be worth less money.” Most consumers are unaware of this and of the fact that the loss in value might be recoverable. Collins referred to the auto auction side of the business where a condition rating system is used to determine how a vehicle’s value diminishes based on incurred damage. “When cars go through auctions, they get a condition rating, on a scale of 0 to 5,” he explained. “Typically, a vehicle may have a condition rating of four or five with no prior accident. Once a vehicle has been in an accident, it won’t be rated higher than a three. If it has suffered structural damage – whether it has been repaired or not – it will be rated no higher than two. So, if a vehicle was worth $30,000 at a rating of four, it won’t be worth that amount once it’s rated as a two following an accident. You can’t do anything to fix that. You can’t change the vehicle history. Once it’s been wrecked and damaged, the car is now worth less because its condition changed.” 20 July 2022
New England Automotive Report
In the past, Collins has gone to bat against insurers on behalf of consumers to get them reimbursed for diminished value, but thanks to a 2021 Massachusetts Supreme Court decision, insurers are now required to pay for the loss in value of one’s auto if the accident was caused by another party. Collins created autolossdv.com to address this particular need for Massachusetts consumers. Collins will appraise the vehicle and assess the diminished value amount. If the insurer disagrees, they can negotiate. If things really get stalled in that area, he calls in an attorney to take it to court, and the customer only pays attorney fees if the outcome is successful. Collins has 85 court cases under his belt. Collins has been serving consumers in Massachusetts, Connecticut and Rhode Island since he launched Wreck Check. Last summer, he moved to Florida and has begun serving consumers in that area in addition to his New England territory where he conducts diminished value appraisals remotely. His affiliation with AASP/MA goes as far back as the Massachusetts Auto Body Association (MABA) days. Collins says he has always supported the auto body association in some form; he always made sure that whichever dealership he worked for at the time became a member of the association. Most recently, Wreck Check of Boston came on board in AASP/MA’s Vendor Affinity Program as a Silver sponsor. Collins believes it’s important to show support for the auto body association, and it’s a great way for him to “stay on top of the game” by continuing to learn and keep up with the most recent industry developments. “Associations like AASP/MA are tuned into the latest things. It helps make me aware of current events and what is coming down the pike. The affiliation helps me stay in front of the curve, so I don’t fall behind.” The whole concept of Collins’ business is based on helping consumers by trying to educate them, and he also strives to educate shops so that they can pass it on to their clients. “Historically, many people didn’t understand what diminished value is…and many still don’t.” As he has for 20-plus years and counting, Collins continues to set out to change that. PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
A M P/
AAS
Thanks to our VAP Members for their continued support during this pandemic crisis.
"Your Massachusetts Auto Body Association" PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
VENDOR AFFINITY PROGRAM
SPONSORS
MASSACHUSETTS
DOUBLE BLACK DIAMOND LEVEL
Volkswagen
DIAMOND LEVEL PLATINUM LEVEL GOLD LEVEL
SILVER LEVEL ADAS CALIBRATION SHOP
& BUY FROM YOUR
AASP/MA SPONSORS
For more information or to become a sponsor of AASP/MA please call (617) 574-0741 or email admin@aaspma.org. New England Automotive Report
July 2022 21
(800) 328-7855 www.raeservice.com
WS Lifter 1.4T EV Battery Lifting Table Can also be used on motors, transmissions, and subframes -3800 lbs. capactiy -6’ lifting height
XPress 800 Industry #1 OEM Rivet Gun Proper dies for proper repairs
22 March 2022
YOUR OEM EXPERTS
New England Automotive Report
Start Fixing The Right Way
Carbon
The certified OEM choice for dent repair Steel, Aluminum, Glue-pull Carbon has it all
Technician Portal
Easily access training videos, instruction manuals, and find replacement parts
www.raeservice.com
(800) 328-7855
New England Automotive Report
July 2022 23
[NATIONAL] FEATURE
by Chasidy Rae Sisk
Industry Leaders Applaud AASP/MA’s Efforts to Unite and Take a Stand Massachusetts collision repairers raised the standard of what it means to unite and take a stand for the industry when over 300 industry professionals gathered on Beacon Hill to fight for higher labor rates – and their rallying battle cry reached the ears of industry leaders all around the country who cheered their efforts from a distance. “It’s impressive that so many auto body professionals got together to fight for their livelihood…and rightfully so because no one in their right mind who knows anything about this industry feels $40 or even $50 an hour is a reasonable rate,” stated Jerry McNee, president of the Alliance of Automotive Service Professionals of New Jersey (AASP/ NJ). “Our costs have gone up, and when you combine those business expenses with the amount we’re now paying technicians, shops are losing money on every car they’re fixing…or they’re just not fixing them properly, unless they’re crossing every T and dotting every I,” McNee continued. “Insurers set this precedent and refuse to entertain any rate increases. It’s time to stop accepting the status quo, and AASP/MA’s rally made it apparent that Massachusetts repairers are demanding a change!” As business owners collecting the lowest labor rate in the country while operating in an area with some of the nation’s highest living costs, it’s no wonder that auto body professionals in the Commonwealth have had enough! “It’s evident that you have a market in distress with some of the highest costs in the industry and the lowest labor rates,” expressed Society of Collision Repair Specialists Executive Director Aaron Schulenburg. “They’ve been fighting a battle on this issue and trying to resolve it legislatively for over a decade, and the repair facilities in the Massachusetts market have worked really hard to convey to their state officials just how dire the situation is for their businesses.” Jordan Hendler, executive director of the Washington Metropolitan Auto Body Association (WMABA), sees the rally as “a really good example of the industry working together for a common cause. In this industry where our colleagues are also our competitors, it’s really refreshing to see a group of repairers who are upholding our community above their individual shops, especially when it comes to labor rates.” “Creating awareness of the issues faced by shops is imperative,” agreed Mike Anderson (Collision Advice). “It’s so hard to get people to act on these problems, and I applaud AASP/MA and the industry professionals who rallied for taking actions; however, I implore them: Don’t let it stop there! Now that you’ve created awareness, you need to build on it and continue to grow that grassroots effort.” “I commend AASP/MA for taking this to the State House,” Burl Richards, president of the Auto Body Association of Texas (ABAT), praised the rally efforts. “This type of action is needed across the country in order to get this industry back on track. We need ‘doers,’ and we need associations like this to stand up and take the lead on these issues. With that being said, the actual shops have to take the time to be involved and recognize that they are in control of their own destinies.” What’s the best way for an individual shop to take control of its 24 July 2022
New England Automotive Report
destiny? By joining (and actively participating in) its local association, of course! Association membership offers many benefits for repairers, including education, camaraderie and more, in addition to legislative activities. “Several states have explored legislation for reimbursement of non-included operations, and some have been successful in their efforts,” Anderson shared. “But those initiatives only succeeded because of the strong associations in those markets and their ability to come together to focus on the things they have in common like staffing, training and technology, instead of getting stuck on what makes us different. Associations emphasize our common ground.” “Anytime businesses can leverage the scope of a larger combined voice, they can benefit from the prominence that comes with that,” Schulenburg noted. “As a small business, it’s hard to both manage day-to-day operations and advocate for yourself, and it can also be challenging to see outside of your own situation. Associations benefit from a more expansive viewpoint made up of many of their members, rather than just singular experiences. I think that’s why organizations like ours and AASP/MA place such high priority on both bringing information to the members and also using the membership feedback received to be a representative voice.” Richards offered a list of the benefits shops can derive from association participation.
"We need ‘doers,’ and we need associations like this to stand up and take the lead on these issues." “Auto body shops face a lot of challenges, and many of these issues can be addressed by getting involved with your local association: education in regard to proper and safe repairs, ideas and examples of how other shops manage and oversee their shops, ways to improve employee retention, generally keeping up with the status of the industry, communicating with other shops is key to being successful, legislative agendas that are aimed toward industry and consumer safety, proper reimbursement, understanding your cost of doing business and so much more.” “Providing education is one of the most obvious benefits that associations offer because it allows repairers to come together to mutually learn,” Hendler pointed out. “These training sessions help shops find common ground on things like following OE repair procedures. With so many changes impacting our industry every day, the need for training shouldn’t be a contentious point for anyone.” “Running a collision repair shop in today’s world is complex, and shops aren’t getting it on their own,” McNee insisted. “A lot of these
continued on pg. 40
New England Automotive Report
July 2022 25
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 Ge uine 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
Sarat Ford Lincoln Mercury
Quirk Auto Dealers
6 Uxbridge Road
245 Springfield Street
115 E. Howard St.
Mendon, MA 01756
Agawam, MA 01001
Quincy, MA 02169
Toll Free Parts: 877-272-0332
413-786-0430
Toll Free: 877-707-8475
Toll Free Fax: 877-800-6316
Fax: 413-789-3715
Call us for your wholesale parts needs
www.saratford.com
Balise Ford of Cape Cod 90 High School Rd. Ext. Hyannis, MA 02601 TOLL FREE: 800-992-6220 FAX: 800-254-3544 wparts@baliseauto.com www.BaliseWholesaleParts.com
© 2019, Ford Motor Company
NEW ENGLAND’S NEWEST MOPAR DEALER
777 Washington Street • Newton, MA 02160 Hours: M-F: 7am-6pm Sat: 7am-1pm
Call Us For All Your MOPAR Needs or visit us on the web: www.mcgoverncjdrofnewton.com
For First Time Customers, Call me: Mando Bogosian, Wholesale Manager
Hours: M-F: 7am-6pm Sat: 7am-1pm
TOLL FREE: 800-741-7563 DIRECT: 617-454-2990 FAX: 617-467-0006
Call us and get the right MOPAR parts the FIRST TIME! 26 July 2022
New England Automotive Report
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
Quirk Auto Dealers 115 E. Howard St. Quincy, MA 02169 Toll Free: 877-707-8475
Balise Subaru 561 Quaker Ln. Warwick, RI 02893 TOLL FREE: 800-992-6220 FAX: 800-254-3544 wparts@baliseauto.com www.BaliseWholesaleParts.com
Patrick Subaru 247 Boston Turnpike Shrewsbury, MA 01545 508-756-8364 Fax: 508-752-3691 www.patricksubaru.com jlavalley@patrickmotors.com
One Call, One Truck for Eleven Brands!
New England Automotive Report
July 2022 27
[COVER] STORY
AASP/MA TAKES ACTION: HUNDREDS RALLY FOR LABOR REIMBURSEMENT RATE REFORM AASP/MA set out to send a loud and clear message – and that is exactly what they did on May 18. More than 300 frustrated and determined Massachusetts collision repairers responded to the call to join the “Alliance” outside the Capitol building on Beacon Hill to rally in support of House Bill 1111/Senate Bill 709, legislation that would bring a long overdue increase to an insufficient insurer-controlled $40 labor rate – the lowest in the nation. Industry professionals came together to educate legislators, consumers and anyone listening that $40 per hour is simply not sufficient to cover technician and office worker salaries, equipment, rent, training, healthcare and all of a collision repair facility’s overhead costs. There’s also the factor of today’s vehicles requiring nothing but safe and proper repairs, and if they fail to do so, shops pay the high cost of accepting the liability. Their efforts bore fruit. As this magazine went to press in early June, AASP/MA learned that the Joint Committee on Financial Services released HB 1111/SB 709 with an "ought to pass" recommendation. The bills are now awaiting the next steps in the process. On the day of the rally, colorful, eye-catching signs boasted powerful messages reflecting the goal of their demonstration: “Save lives, save jobs, save an industry!” “Save my future in collision repair!” “Stop insurance greed! Save shops, jobs and protect consumers!” “Raise the rate now!” chanted the sea of collision repairers,
28 July 2022
New England Automotive Report
vocational school students, vendors and other supporters, as they marched in a circle cheering, roaring, blaring air horns and waving signs while a parade of lettered shop vehicles and flatbed trucks carrying damaged vehicles honked their horns each time they drove past the State House, demonstrating that they will not sit back and watch their industry die due to insufficient rates. AASP/MA Executive Director Evangelos “Lucky” Papageorg commended everyone for taking the time off in support of the cause. “Thank you for your commitment and for making this the event it really needed to be so we can help educate our legislators regarding HB 1111 and Senate Bill 709,” he declared from the steps in front of the Capitol building to the hundreds gathered, including several TV news crews and other media. To kick things off, Papageorg invited Assabet Valley Vocational Technical School students to lead off what he called a “Tea Party Reenactment,” instructing them to safely toss damaged vehicle panels emblazoned with the words “$40 is not enough” from the steps of the Capitol building. The group cheered in support as Papageorg pointed out that one of the more crucial reasons for supporting these bills is to keep the industry alive for the young people who want to get into it “because they love it. They think it’s cool. The problem is that those reasons won’t pay the bills. We need to be able to pay the bills. We need to have something in place for their future. We need to grow this industry, and we need to bring technicians back into this trade. We can’t afford to lose them to other industries.”
by Alana Quartuccio Bonillo
“Yes!” demonstrators shouted in unison as Papageorg next rattled off questions asking if they are small business owners, if they employ thousands of people in this industry in Massachusetts, if they are honest, hardworking taxpayers and if the bills they rallied to support are all based on consumer safety. Sending it home, Papageorg asked, “What do you want for HB 1111 and Senate Bill 709?” “To pass!” shouted the crowd. “When do we need these bills to pass?” “Now!” protestors hollered. AASP/MA President Kevin Gallerani called it an “unbelievable showing” of support. “This rate has been artificially suppressed for so long. It’s great to see the support we have out here today.” Pointing to the State House in the background, the association president hoped those occupying the building would hear their cries and understand that there is a “David and Goliath” situation between auto body shops and insurance companies that absolutely needs to be addressed. “It’s sad that we had to come down here and do this. Thirtyfour years without a raise is unbelievable. I don’t know of any other industry that is dealing with this. Who is going to fix these cars for us? Who is going to fix them safely? That is why we are here today.” AASP/MA Legislative Director-at-Large Tom Ricci (Body and Paint of Hudson) did not hide his passion for the cause as he took the mic. “Thirty-four years! We’ve changed almost nothing!” he exclaimed. “This is our day to make A LOT of noise. Not just a little. Don’t be shy. Let’s go! Let’s rock this place! Since 1988, the labor rate has not changed. We had a study done in 2008 that did nothing! We just had the labor rate studies done again. We can’t wait any longer. That is why we are here today. That is why we need to make some noise!” AASP/MA Lobbyist Guy Glodis echoed the frustrations Ricci expressed as he addressed the crowd. “We are here to highlight the corporate greed, injustice and dishonesty of the insurance industry for stagnating wages of the auto body industry. The facts don’t lie. You haven’t had a pay raise in 34 years!”
Glodis pointed out that the Consumer Price Index has gone up 137 percent over that same time period and insurance premiums, which Glodis called the insurance companies’ “pay raise,” has gone up 254 percent! The crowd booed loudly in protest. “The insurance industry makes an argument every single year about why they should get a pay raise but they say ‘no’ to the hardworking men and women of this Commonwealth who do the real job! They say ‘no’ year after year and that is corporate greed.” “The insurance industry has filled their pockets,” he continued. “They have record profitability even throughout the Covid era and won’t even offer a solution to make sure you get paid fairly and justly.” According to Glodis, in a state that is known “to pride itself on wages” because it pays teachers, police, nurses and other industries well, it’s time to educate the legislators that the auto body industry is “at the bottom of the barrel due to insurance greed. We are here today to educate the legislators behind us that our hourly wage is even behind Mississippi. Think about that. With inflation AND the cost of doing business here in Massachusetts, we are paid at an hourly wage that is behind Mississippi. That is wrong and unjust.” “Forty dollars an hour is the most absurd thing I have ever heard,” lamented Jack Lamborghini, owner of Total Care Accident Repair (Raynham), to his colleagues as they rallied in support. Although one insurer recently notified him of a rate increase of $50 for body and paint, $52 for spraying and up to $58 for mechanical, Lamborghini insisted the effort just doesn’t cut it. “I give them credit for doing something, but it is still not enough. If you follow the goal of HB 1111, you will know what the rate should be based on the Consumer Price Index. It should be in the $70 range. When costs go up, you have to raise your rates. It’s absurd to think we can survive at $40 per hour.” Lamborghini went on to cite 16 insurers he called the “the cartel” as they are “digging their heels and won’t budge” when it comes to the insufficient rate they reimburse. “Those 16 carriers have somehow independently decided that $40 is the number.” Papageorg relayed the minimal comments and testimony
continued on pg. 40 New England Automotive Report
July 2022 29
30 July 2022
New England Automotive Report
New England Automotive Report
July 2022 31
Boch Hyundai
Boch Chevrolet
Genesis of Norwood
THE SERVICE NEVER STOPS AT BOCH HYUNDAI! PARTS LINE:
KNOWLEDGEABLE STAFF AND GENUINE GM PARTS! PARTS LINE:
PROVIDING SERVICE, QUALITY AND EVERYTHING IN-BETWEEN! PARTS LINE:
TOLL FREE:
TOLL FREE:
TOLL FREE:
781-762-9210 800-559-9210 E-MAIL:
bchwholesale@boch.com
VISIT US: 391 Boston Providence Hwy Route 1, The Automile Norwood, MA 02062
32 July 2022
New England Automotive Report
781-762-9210 800-559-9210 E-MAIL:
bchwholesale@boch.com
VISIT US: 381 Boston Providence Hwy Route 1, The Automile Norwood, MA 02062
781-762-9210 800-559-9210 E-MAIL:
bchwholesale@boch.com
VISIT US: 391 Boston Providence Hwy Route 1, The Automile Norwood, MA 02062
FIT AND FINISH IS NO PLACE TO GET CREATIVE. CONTACT US TODAY FOR A COMPETITIVE QUOTE ON YOUR NEXT COLLISION REPAIR ESTIMATE. BALD HILL DODGE CHRYSLER JEEP 1035 Bald Hill Rd Warwick, RI 02886 Order Hotline: (800) 822-3015 17 delivery trucks serving RI, MA and CT daily! IMPERIAL CHRYSLER DODGE JEEP 6 Uxbridge Road Mendon, MA 01756 Order Hotline: (877) 272-0332 Call us for your wholesale parts needs!
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! MCGOVERN CHRYSLER JEEP DODGE RAM 777 Washington Street Newton, MA 02460 Order Hotline: (800) 741-7563 For the best customer service ask for Mando Bogosian QUIRK AUTO DEALERS 115 E. Howard Street Quincy, MA 02169 Order Hotline: (877) 707-8475
Check out MoparRepairConnection.com for resources, promotions and technical information. ©2020 FCA US LLC. All Rights Reserved. Chrysler, Dodge, Jeep, Ram, Mopar and SRT are registered trademarks of FCA US LLC.
NEAR_Collision_COL15.indd 1
New England Automotive Report
July 2022 33 9/16/20 9:21 AM
[LEGAL] PERSPECTIVE by James A. Castleman, Esq.
A Problematic Decision Regarding Storage Payments I hesitate to write this article since it publicizes a recent court decision that, in my opinion, may give Massachusetts auto insurers an excuse to try to grab an incredibly unfair advantage when paying for storage on total losses; however, the insurance industry has already begun to crow about the case. In fact, I first heard about it from a shop owner who had read an article in an insurance industry blog. I am, therefore, writing this article so that the collision repair industry is provided with information about the case and how to deal with it. The case is Puopolo v. Commerce Insurance Company, and the decision in the case was issued by the Massachusetts Appeals Court on April 26 of this year. In Puopolo, the court decided that Commerce could pay a collision repair shop its actual storage charges, in any amount, but that the insurer legitimately could reduce its total loss claim payment to its insured by the amount of storage payments to the shop that it considered to be “unreasonable.” Commerce, with the court’s approval, determined that anything in excess of $35 per day was unreasonable. Before analyzing the case in detail, I want to make two important points about it: First, although decided by the state’s second highest court, the decision is a so-called “unpublished” summary opinion (even though it is a publicly available written decision of the court), subject to special rules and effect. In particular, while unpublished opinions may be cited for their “persuasive value,” they do NOT serve as binding precedent. They are not decided by the full court and only reflect the opinion of the particular panel of judges who issued the decision. They are primarily only directed to the actual parties to the case and not intended to be binding on the rest of the world. So, no matter what an insurer might try to tell you, unless you are Michelle Puopolo or one of her two co-plaintiffs and are dealing with Commerce on a first-party claim, this decision is not binding on you – whether you are a collision repair shop or an insured. Second, the attorneys for the plaintiffs in the case have filed a notice of further appeal. If they are successful, then the holding of the case could be thrown out altogether. The Facts of the Case Ms. Puopolo and the other two plaintiffs in the case owned cars that they insured with Commerce. The three cars were involved in separate collisions, and all incurred significant damage. Each of the vehicle owners then chose to have their car towed to a repair shop that was not a Commerce referral shop. The three independent repair shops all charged more than the $35 per day that Commerce paid to its referral shops. It is not clear from the court’s decision exactly how much Ms. Puopolo’s shop charged for storage, but one of the other shops charged $95 per day, and the other charged $100 per day. All three cars were determined by Commerce to be total losses, and in line with the applicable insurance policies, Commerce offered to pay each claimant the actual cash value (ACV) of their car in exchange for the insured signing over their title to Commerce. Before paying 34 July 2022
New England Automotive Report
the ACV amounts to their insureds, though, Commerce first paid each repair shop their storage charges in full, in order to have the shops release their garage keeper’s lien and give them the car. What happened next seems outrageous to me. To quote from the court’s decision: “Commerce paid each auto body shop directly for the plaintiffs' accrued storage charges. Commerce did not dispute or attempt to reduce the charges, and it did not inform the plaintiffs that it believed the storage costs were unreasonable. It then proceeded to deduct from the plaintiffs' ACV payments the portion of the storage bill that it felt exceeded a reasonable rate.” That “reasonable” rate was $35 per day. As a result of this action, the plaintiffs sued Commerce for breach of their insurance contracts for the amounts that were deducted from their claim payments. They also sued for treble damages and attorneys’ fees under the Massachusetts Consumer Protection Act, alleging that Commerce had engaged in unfair insurance claims settlement practices. The Basis of the Court’s Decision The Appeals Court (as its name implies) primarily decides only appeals from cases that have already been decided by a lower trial court. In this case, the trial court in which the case was originally heard made its decision on a motion for summary judgment. That means that there was no actual trial of the case. Rather, Commerce filed a motion with the court, supported by affidavits, claiming that there was no genuine issue of material fact in the case and that the court should make its decision by applying the law to the facts stated in its affidavits. The plaintiffs’ attorneys opposed the motion, but the court decided in favor of Commerce. While the exact content of the affidavits that were filed are not disclosed in the Appeals Court’s decision, their content appears to have been the key to the court’s decision. The court acknowledged that Commerce was obligated under its insurance contract to pay “reasonable and necessary expenses for towing, recovery and storage” of a damaged insured auto – but found Commerce’s $35 per day to be a reasonable expense for daily storage. Significantly, in making its finding, the Appeals Court noted: “The parties agree that Commerce assumed the portion of the storage charges it deemed reasonable. Thus, the only way that the plaintiffs can show a breach of contract is to dispute the reasonableness of Commerce's deduction. But the plaintiffs failed to present evidence on this issue [emphasis added]. . . . Because the plaintiffs were obligated to rebut this evidence to survive summary judgment and did not do so, the judge properly granted Commerce's motion.” According to the Appeals Court, Commerce presented affidavits stating that storage charges for both police-ordered tows and for salvage vendors were $35 per day and that its approximately 800 referral shops charged between $25 and $35 per day. Yet – at least according to the court – the plaintiffs submitted no counter affidavits that would have established that the plaintiffs’ shops’ charges were reasonable.
continued on pg. 38
GENUINE NISSAN PARTS MAKE ALL THE DIFFERENCE.
Only Genuine Nissan Parts deliver the fit, reliability, and performance to meet your shop’s collision repair needs. So keep it original, and keep it real with Genuine Nissan Parts. Contact these Nissan dealers for all your parts needs: Mastria Nissan 1305 New State Highway Raynham, MA 02767 Direct Toll Free: 800-248-2458 Direct Fax: 508-802-6118 E-mail: parts@mastrianissan.com
Kelly Nissan of Lynnfield 275 Broadway Lynnfield, MA 01940 Toll Free: 800-698-9280 Fax: 781-598-8026 E-mail: dlacoste@kellyauto.com
Web: www.mastria.com
Kelly Nissan of Woburn 95 Cedar Street Woburn, MA 01801 Phone: 781-835-3510 Fax: 781-835-3580 E-mail: mbosma@kellyauto.com www.kellyauto.com
Balise Nissan of Warwick 1350 Post Rd. Warwick, RI 02888 TOLL FREE: 800-992-6220 FAX: 800-254-3544 wparts@baliseauto.com www.BaliseWholesaleParts.com One Call, One Truck for Eleven Brands!
Quirk Auto Dealers 115 E. Howard St. Quincy, MA 02169 Toll Free: 877-707-8475
36 July 2022
New England Automotive Report
New England Automotive Report
July 2022 37
[LEGAL] PERSPECTIVE continued from pg. 34 If this indeed is what happened, then the plaintiffs’ attorneys may have made a major blunder. If what the court stated is true, then the plaintiffs could have avoided a summary judgment against them merely by filing counter affidavits that contained some amount of evidence that their clients’ repair shop storage charges were reasonable. If they had, there would have been a genuine issue of fact, and the lower court should have ordered that the case be fully tried. Perhaps the attorneys could have filed affidavits demonstrating that Commerce had previously paid these shops’ storage charges without deduction from their insureds’ claim payments. Maybe they could have shown that the plaintiffs’ shops had a larger overhead, or that they had limited and costly storage space, or that they could not rely on the same volume of Commerce business as Commerce referral shops expect in exchange for a fixed lower storage rate. I have not seen any of the underlying pleadings or affidavits filed by the plaintiffs’ attorneys, so I do not know if the court’s statement about what was in them is accurate. But if it is, then it appears that the attorneys should have handled the case somewhat differently. Despite the Court’s finding on the contract claim, this still left the plaintiffs’ consumer protection claims. But the court essentially found that, without being able to win on their contract claim, the plaintiffs could not succeed on an unfair claims settlement claim if the total of Commerce’s settlement payment was in fact reasonable. I have some problems with the court’s reasoning in this regard. After all, Commerce did not even try to negotiate storage charges with the plaintiffs’ repair shops, nor did they post a bond in order to dissolve the shops’ liens in order to be able to dispute the charges. Nor did they tell their insureds in advance that they would be deducting what they considered to be unreasonable charges from their ACV payments or anything else about their dealings with the plaintiffs’ shops, so that the plaintiffs possibly could have tried to do something about what was happening before receiving that reduced check. Commerce just left their insureds holding the bag with an unexpectedly smaller check in their hands. All of this seems unfair, since it appears to me that Commerce tricked their insureds into agreeing to sign over the title to their vehicles in exchange for a payment equal to the vehicles’ ACV, yet once they got possession of the cars, Commerce blind-sided the claimants by sending them checks for lesser amounts. But the decision is what it is. What Can You Do? What you can do about this case depends on what your shop’s policies are. Each shop must make its own determination about what to charge for the storage of totaled vehicles. If you are a referral shop that has agreed to a specific storage rate with your referring insurer, then you have already established what that insurer believes is a “reasonable” storage rate, so your customers should not have any problems with deductions from their ACV claim payments. The same applies if you have independently decided to charge a daily storage rate that is equal to or less than whatever a particular insurer is willing to pay for storage. If you are a non-referral shop – even if for only some insurers – and want to charge more for storage than you believe an insurer is willing to pay, consider the following: (1) The most important thing you can do is make sure that you are aware of this case, what it says and what its holding really means. If you have read this far into this article, then you are mostly there. Read the 38 July 2022
New England Automotive Report
article again and keep it on hand. You may need it. (2) Let your customers know about this case and that they may run into problems with their insurer if you think that the insurer may make deductions from their claim payments because of your storage charges. Suggest to your customers that they obtain something in writing from their insurer as to the amount of their claim payment check, with a written certification that there will be no deductions, before they sign over title to their car. (3) Do not be bullied by insurance personnel, and tell your customers not to be bullied either. As noted earlier in this article, no matter what an insurance claims handler may be telling you about the Puopolo case, it is not binding precedent, and its holding applies only to the actual parties who were involved in that case. A different trial court may come to a different conclusion with different parties – particularly if the plaintiffs in that case present evidence that their repair shop’s storage charges are reasonable. (4) Be prepared to establish that your charges are reasonable. How much higher are your charges than what a particular insurer is willing to pay? Do all of your customers and most other insurers pay your actual storage charges without deducting anything from your customers’ claim payments? Do you have higher overhead, or is the real estate on which your shop is operated more valuable than in other geographic areas? What is your overhead, and what is a reasonable amount to assign to your storage services? (5) Consider charging whatever you believe to be your own reasonable storage charges, and do not be concerned about whether your customers’ insurer is going to make deductions from their claim payments. As the individual who chose that particular insurer, your customer is the one who should be expected to live with whatever decisions their chosen insurer has made…or to fight their own battles with their insurer. Set your storage rate at what you believe you need, charge that amount for all of your customers and their insurers, and let your customers and their insurers settle any disputes over what the insurer is paying for storage or deducting from claim payment checks. If you do not handle your storage charges in this manner, you may forever be bound to accept whatever any particular insurer is willing to hand you. Conclusion The Puopolo case is problematic. It seems to say that an insurer can get away with setting whatever it wants as the amount it is willing to pay for storage, and it can then arbitrarily deduct any amount it considers to be unreasonable from their insureds’ claim payment checks. But be aware of what the case actually says, its actual effect and the fact that it is not binding precedent. Let your customers know about it, and make sure you and your customers have the information necessary to be able to stand up to insurers who may be trying to unreasonably rely on this decision. 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) 472-3424 or at jcastleman@prclawoffice.com.
X
Series
BACK BY POPUL AR
DEMAND FX Series returns with 12 original cand y concentrates for endless color creati v it y and pure brilliance.
M AV ERICK REQUES T ED. M AV ERICK APPROV ED. W W W . VA L S P A R A U T O . C O M / M AT R I X E D G E A brand by
COVER STORY
NATIONAL FEATURE
continued from pg. 29
continued from pg. 24
presented by the insurer side during the recent Labor Rate Study Commission hearings, stating “their arguments are so flawed it’s not even funny.” According to their testimony, insurers want faster cycle times and indicated “shops are just not working fast enough for them” – refusing to acknowledge factors such as technician shortages which lead to backlogs at every shop and advancing technology which requires expensive equipment upgrades and technician training. “We are being told how to fix cars and what to do to fix them by people who do nothing but push pen and paper. We are the experts, and we need to be paid as the experts,” declared Papageorg. He left all with one final thought: Passing these bills is about avoiding future stagnation of the labor rate. “Once those bills are passed, the rate will increase based on your cost of doing business, just like any other retail business out there.” Lastly, he thanked everyone for their dedication to the cause. “Today’s rally, along with everything else we have been doing with the association, has been a team effort. We are a true Alliance!”
guys don’t even understand their KPI numbers, but association meetings help develop some parameters. An even bigger benefit is the real heartto-heart conversations we can have before and after those meetings, when we can rub elbows with the right people and talk about our shop’s successes and failures. Shops absolutely need that, and if you’re not actively participating in your association, you’re not getting everything you can from your membership. You’ve got to get involved.” While associations strive to better the collision repair industry, it’s impossible for any group to be successful in its endeavors without the support of its members. Industry leaders shared some advice on how shops can derive the most benefit from their memberships. “It’s about engagement, pure and simple,” Schulenburg stressed. “It starts with being a member. Then, that grows into asking, ‘How can you participate?’ Those who get the most out of their membership are almost always the businesses who understand that they can be a piece of the puzzle and work to be a part of the efforts. It’s not unlike a gym membership. The more you show up, use the resources and watch others around you who have accomplished what you are looking to accomplish, the better you are able to make advancements on your own goals.” Building off the gym analogy, Hendler added, “Like a gym membership, the money to join keeps the doors open, but each individual shop will only get out of it what they put in…that means showing up for yourself! If you don’t use it, you’re still supporting other people’s endeavors, but you’re not doing anything for yourself. It’s great to help the rest of the industry, but don’t you want to see that individual benefit as well?” “Too often, we see 20% of the people doing 80% of the work in this industry,” Anderson lamented. “In today’s world, there are many options for obtaining information, but nothing compares to showing up at an old-fashioned, in-person meeting and talking to your industry colleagues. Shops need to get involved with their associations if they want to make a difference in this industry that we all love.” Although McNee felt it was great to see so many people participate in the rally, he asked, “Where the heck were the rest of us?! Associations need help to effect these changes that our industry needs, but unfortunately, many people are reluctant to get involved. It’s almost comical how shops will object to the cost of association membership, yet they’ll spend the same amount of money on beer every Friday night. We need your voices to strengthen our battle cries because the squeaky wheel gets the oil. What are YOU doing to help our industry?” “It’s really very simple,” according to Richards. “Shops need to recognize that this is their industry and stop relying on insurance companies to dictate how things are done. Take your industry back, so you can start making the rules. This is done by organizing and supporting a body shop association, but you’ll only get the most out of your membership if you’re actively involved. Shops need to participate in the process because it is OUR industry after all!” “Failing to get involved is like going to the polls a week after the election,” Hendler believes. “You need to pay attention and show up when it matters.” The collision repair industry’s future matters. Your shop matters. Your employees and your livelihood matter. And AASP/MA is fighting for YOU. Isn’t it time to pick up arms and help continue this momentum to have a larger impact on your industry? If you’re tired of the status quo, contact AASP/MA to find out how you can get involved today at aaspma.org.
PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
Why Join WIN? WIN offers education, mentoring and leadership development opportunities to build critical skills for success in the collision repair market. • Local/Regional Networking Events • Annual Education Conference • Educational Webinars
• Scholarship Program • School Outreach Program • Most Influential Women (MIW) Award
• Mentoring Opportunities womensindustrynetwork.com
PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
40 July 2022
New England Automotive Report
PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
New England Automotive Report
July 2022 41
EMPIRE AUTO PARTS
Spend more time running your business and less time worrying about your parts.
www.empireap.com
ADVERTISERS’ INDEX Accudraft Paint Booths................................. OBC Audi Group...................................................... 31 BMW Group.................................................... 10 Boch Chevrolet................................................. 14
Lamps
Bumper Covers
Radiators
Hoods & Fenders
Boch Hyundai.................................................. 32 Colonial Auto Group.......................................... 2 Crown Collision Solutions................................ 32 Empire Auto Parts............................................ 42
Door Mirrors
Steel Bumpers
Cooling Fans
Grilles & Bezels
MA DISTRIBUTION CENTER
888.366.5155 Serving ME, MA, NH, RI, VT
Parts Accuracy Friendly Sales Team
Quality Assurance Fast, Free Delivery
Ford Group...................................................... 26 Genesis of Norwood......................................... 14 Grieco Toyota................................................... 15 Honda Group................................................... 11 Hyundai Group................................................ 30 Ira Subaru......................................................... 12 Ira Toyota of Danvers....................................... 13 Kelly Automotive Group................................IBC Kia Group........................................................ 32 Linder’s, Inc. .................................................... 15 Lombard Equipment........................................ 19 Long Automotive Group.................................. 41 Mazda Group................................................... 30 McGovern Chrysler Jeep Dodge Ram �������������� 26 Mopar Group................................................... 33 Nissan Group................................................... 36 Quirk Wholesale Parts........................................ 4 Reliable Automotive Equipment.................. 22-23 Matrix Edge/Valspar......................................... 29 Sarat Ford Lincoln............................................ 17 Spanesi............................................................... 3 Subaru Group................................................... 27 Toyota Group................................................... 25 USI North America.......................................... 35 Volvo Group..................................................... 30 VW Group....................................................... 37 Wagner Motors................................................... 9 Wheel Collision Center.................................... 42
42 July 2022
New England Automotive Report
WIN................................................................. 40
44 July 2022
New England Automotive Report
