New England Automotive Report August 2018

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Serving the New England Collision and Mechanical Repair Industry

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MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

HOW CAN AASP/MA

HELP? New & Returning Members Share Their Thoughts PLUS: AASP/MA Is Listening The Future of the Labor Rate www.grecopublishing.com

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We provide the highest level of customer-friendly service through our knowledgeable and helpful personnel!

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COLONIAL FORD 147 Samoset Street Plymouth, MA. 02360 Phone Number: 800-233-8109 FAX Number: 508-830-1658

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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

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COLONIAL BUICK - GMC 66 Galen Street Watertown, MA. 02472 Phone Number: 888-560-5337 FAX Number: 617-489-6875

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: 888-322-6570 Phone Number: 508-996-6266 FAX Number: 508-616-0445 FAX Number: 508-979-1219

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

COLONIAL CADILLAC 201 Cambridge Road Woburn, MA. 01801 Phone Number: 781-935-7009 FAX Number: 781-933-7728

Place any order online with our parts order form at www.buycolonial.com

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Membership Application 2018 & 2019

AASP-MA P.O. BOX 212 Marlborough, MA 01752 Phone: 617-574-0741 Fax: 781-848-1603 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 # _____________________________ Company’s Official Name: _________________________________________________________________________________________________ Business Physical Address: _______________________________________________________________________________________________ Business Mailing Address (If Different): ________________________________________________________________________________ Telephone Number: ________________________________________________________________________________________________________ Website: ______________________________________________________________________________________________________________________ Additional Social Media: Facebook____________________________________Twitter_________________________________________ DUES STRUCTURE Type of Membership (Collision or Vendor): _________________________________ Annual Dues: $495/12 Months*

BUSINESS CONTACTS PRIMARY CONTACT ACCOUNTS PAYABLE Name: _______________________________________________________ Name: _______________________________________________________ Phone: ______________________________________________________

Phone: ______________________________________________________

Email: _______________________________________________________

Email: _______________________________________________________

CONTACTS WHO WISH TO RECEIVE NEWSLETTERS, EVENT INFORMATION, & LEGISLATIVE UPDATES Name: __________________________________________________ Email: _______________________________________________________ Name: __________________________________________________

Email: _______________________________________________________

Name: __________________________________________________

Email: _______________________________________________________

Name: __________________________________________________

Email: _______________________________________________________

Name: __________________________________________________

Email: _______________________________________________________

PLEASE ENCLOSE PAYMENT WITH YOUR MEMBERSHIP APPLICATION Please Check Here If Paying By Check: ___________ (Please note RS# on memo line of check if Collision Shop) Please Check Here If You Wish To Pay With A Credit Card: _______________ CC #: ______________________________________________________________________

EXP: ________/___________ CID: _________________

Billing Address: ______________________________________________________________________________________________________________ Amount to Charge: ______________________________ Name On Card: _____________________________________________ Signature: ____________________________________________________ I hereby make this application for membership with the Alliance of Automotive Service Providers of MA (AASP/MA) for membership dues for 12 months as provided for in this contract. *Membership dues are for 12 months commencing on your anniversary date.

New England Automotive Report August 2018 5

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August 2018 • Volume 16, No. 8

CONTENTS

DEPARTMENTS

COVER STORY

PRESIDENT’S MESSAGE by Molly Brodeur 8 | The Future of the Labor Rate

26 | How Can AASP/MA Help? New & Returning Members Share Their Thoughts

by Alana Bonillo

EXECUTIVE DIRECTOR’S MESSAGE

by Evangelos “Lucky” Papageorg

10 | We Are Listening LOCAL NEWS 13 | AASP/MA Prompts ADALB Response on Recycled Parts 20 | Putnam Academy BBQ Celebrates Collision Repair NATIONAL NEWS 22 | PPG-Sponsored Tasca Racing Hits New Hampshire OEM CERTIFICATION PROFILE 30 | American Honda Motor Co. INDUSTRY UPDATE by John Walczuk, ZB Negotiations 32 | Diminished Value: Vehicle Owners Lose Again - Part 2 of 2

ALSO THIS ISSUE INDUSTRY ADVICE: ASK MIKE 36 | What Are the “Who Pays for What?”

Industry Surveys?

5 | AASP/MA MEMBERSHIP APPLICATION 11 | WHERE’S LUCKY? 13 | I-CAR IN MASSACHUSETTS

LEGAL PERSPECTIVE by James Castleman, Esq. 40 | A Call for Reason in Settling Vehicle Loss Disputes

17 | AASP/MA SPONSORS 46 | ADVERTISER’S INDEX

New England Automotive Report August 2018 7

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VICE PRESIDENT’S MESSAGE

The Future of the Labor Rate MOLLY BRODEUR

Without a doubt, the Labor Rate has been THE issue that members continually bring to the Board as the item they would like to see addressed. Further, it’s THE issue that nonmembers use as the reason for not renewing their AASP/MA membership or joining the association altogether. They perceive it as a “lack of action” on the Board’s part.

Before I go down the rabbit hole of our Labor Rate Bill, it’s important to understand that filing a bill is easy. Getting a bill passed in both the House and Senate – and then signed by the Governor – is nothing short of a herculean effort that requires an industrywide commitment, lobbyists, deep pockets and a willingness to take time away from your business time and time again. It also involves meeting with legislators on a regular basis, hosting fundraisers, writing checks and making phone calls. The Board members of AASP/MA – as well as the past Board members of the former Massachusetts Auto Body Association (MABA) and Central Massachusetts Auto Rebuilders Association (CMARA) – have made it a mission over the last decade-plus to see a Labor Rate Bill come to fruition for our industry in Massachusetts.

We have filed a Labor Rate Bill every session since 2007, which totals six legislative sessions and 12 years. Our bill has been rewritten and revised along the way to garner support from the Legislature and to ensure a lasting remedy for our industry. It has passed the House and the Senate on separate occasions, but it has yet to pass BOTH the House and Senate in the same session, which would put it in front of the Governor for the final blessing.

At the end of the day, Labor Rate relief is not going to happen for our industry if you are not willing to engage with the process. The Legislature is not going to act on our bill if we continue to represent only what is perceived as the minority

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of registered repairers in Massachusetts. If you want to see Labor Rate reform, we need you to join the fight so we can show the powers that be that we represent an overwhelming majority of repairers in the state. It’s easy to be a Monday morning quarterback when you haven’t taken any steps yourself to help the cause. You have a committed Board that has continued to fight this fight, but we need YOU in order to bring a Labor Rate Bill to the Governor. If we don’t have the industry at large as members, we will continue to spin the hamster wheel.

Tom Ricci, past president of CMARA and AASP/MA, has said over and over that as long as we are at the table, we have a chance to get this done. We continue to be at the table, and now we need YOU to bring this matter to its final destination – a bill signed into law. We need you as members, as a voice for our industry and as shop owners meeting with your elected representatives and senators. If the Labor Rate truly is your biggest issue, then why aren’t you stepping up and being part of the solution?

The 2017-2018 legislative session is coming to a close, and our bill didn’t make it out of the Financial Services Committee. The next session will begin in January 2019 – are you going to assist in creating change or are you going to continue to be part of the problem? JOIN THE CAUSE NOW!!!

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

AASP/MA PRESIDENT MOLLY BRODEUR is the Chief Operating Officer of Al Brodeur's Auto Body in Marlborough, MA. She can be reached at (508) 485-1082 or molly@albrodeur.com.

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AU M TIVE AUT T TI TIV STAFF

AASP/MA EXECUTIVE COMMITTEE

PUBLISHER

CREATIVE DIRECTOR

Thomas Greco - thomas@grecopublishing.com

Lea Velocci - lea@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 Kevin Gallerani LEGISLATIVE CHAIR Peter Langone IMMEDIATE PAST PRESIDENT Paul Hendricks

PRESIDENT Molly Brodeur VICE PRESIDENT Adam Ioakim SECRETARY Gary Cloutier

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

COLLISION DIRECTOR Rob DelGallo

AASP/MA DIRECTORS www.grecopublishing.com 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 © 2018 by Thomas Greco Publishing, Inc. Images courtesy of www.istockphoto.com

WWW.AASPMA.ORG

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

8 August 2018

New England Automotive Report

Matthew Ciaschini Alex Falzone Joshua Fuller

Kevin Kyes Frank Patterson Mike Penacho

AASP/MA ADMINISTRATIVE OFFICE 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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VICE PRESIDENT’S MESSAGE

We Are Listening EVANGELOS “LUCKY” PAPAGEORG

One of the most important pieces of advice I was ever given by my dad was, “We are given two ears and one mouth for a reason. You should always try to listen twice as much to what you are being told, rather than being the one speaking.” I try desperately to adhere to this concept, as challenging as it may be at times. I have been out on the road visiting shops across the state in my first month as AASP/MA’s new executive director, and I have been listening to and compiling the information shop owners and some of their technicians have been sharing with me. I am pleased to say that the current AASP/MA Board is already aware of many of the concerns that body shops have. Being shop owners themselves, they have many of the same issues and needs and have already been taking steps to address them.

I have been thrilled to visit shops and become reacquainted with folks I have known since my days with the Massachusetts Auto Body Association (MABA). In many of these shops, the next generation has stepped up to manage and run the business as well as take leadership roles within the industry and AASP/MA. That is exciting to see. Three members of the AASP/MA Executive Board are prime examples: President Molly Brodeur, Vice President Adam Ioakim and Treasurer Kevin Gallerani are all second-generation shop owners and managers.

Additionally, Board members Josh Fuller and Frank Patterson have carried on their families’ tradition of collision repair involvement. They have each seen their fathers build their businesses into respected collision repair facilities in their respective communities, and carry on that same direction today. They have also taken roles on the Board, and they work very hard in these positions. Much of their work is thankless and goes unnoticed. Just in my short span of involvement with the Executive Board and the rest of the association directors, it is quite evident that they are working together for the betterment of everyone involved in collision repair. I have had

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New England Automotive Report

the great pleasure of working with each of their parents in the past, and I am sure they are proud to see the tradition and example each have been carrying forward.

AASP/MA has already taken steps to better respond to the needs of our members, and we are seeking ways to make your membership an even greater benefit. We are working towards adding value by centralizing where you and your technicians can find up-to-date technical information regarding everchanging repair requirements. We are developing member-only portals as we update our website. Our goal is to make the website the go-to place for not only you and your shop technicians, but also for your current and prospective customers. You will be able to direct your customers to our website where they can easily find what their rights are as they navigate through the trauma of a collision and its aftermath. They will be able to see the regulations and requirements that govern all insurers under the Direct Payment Regulations.

Your customers will be able to find the specific language governing ALL licensed auto damage appraisers when estimating and negotiating proper repair procedures in restoring their vehicles to the same safe operating condition it was in prior to the loss.

I indicated at the outset of this article that I will be listening at least twice as much as I am talking when I visit shops. I will be the ears of the Board of Directors and will be bringing your ideas back for consideration to be implemented as best as possible. I pledge that none of your ideas will be ignored. As part of my visits to shops beginning in August, I will conduct and compile information with a “face-toface” survey of the topics you as shop owners would like to see addressed in articles, in seminars and on the website.

I will also be gathering information regarding reimbursement rates and posted Labor Rates. There will be survey questions regarding who pays for what and what percentage of the time. The questions will mirror similar surveys

from across the country, and the information will be posted on our website for members to review on a statewide basis and broken up into the four regional AASP/MA chapters of the state. We will post comparisons we compile from other state associations and entities such as the Society of Collision Repair Specialists (SCRS) and Mike Anderson’s “Who Pays for What?” reports. This will allow you to determine how you stack up against your colleagues in your region and across the country. The information will be for educational purposes and for confirmation that you are not “the only one” as you are often told and led to believe.

Please take advantage of the opportunity when I visit your area to speak your mind and express your concerns and the issues you would like to have addressed. Please note the “Where's Lucky?” map on the facing page. Please contact me and request a visit when I am in your region of the state. One of the concerns I have already heard on nearly all of my visits is the need for local meetings to be scheduled on a regular basis. My goal is to start regular chapter meetings by the beginning of October using the voctech schools as locations for the evening meetings.

Once again, I hope to hear from you and speak with you during a future shop visit. Together, this association can accomplish great things with and for its members. The Board of Directors and I are listening and committed to your success and the success of AASP/MA. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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

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New in NEAR...we'll be letting you know where

AASP/MA Executive Director Lucky Papageorg will be visiting in the state each month.

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AUGUST 2018

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

1

For the month of August, Lucky will be spending the first week visiting shops in the Southeastern region.

For the second week, he will be in the Midstate region.

In the third week, he’ll be visiting the Western region.

During the fourth week, he will be in the Boston/Northeast region.

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

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New England Automotive Report

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[LOCAL] NEWS in Massachusetts August 7, 2018 Understanding the Cycle Time Process Enterprise Rent-A-Car (Burlington) August 14, 2018 Advanced Steering & Suspension Systems Damage Analysis Enterprise Rent-A-Car (Burlington) August 20, 2018 Hazardous Materials, Personal Safety & Refinish Safety New England Collision Equipment, Inc. (Mansfield) August 21, 2018 Adhesive Bonding Enterprise Rent-A-Car (Burlington)

For more information, visit i-car.com

AASP/MA Prompts ADALB Response on Recycled Parts During the June 20 meeting of the Auto Damage Appraiser Licensing Board (ADALB), AASP/MA Executive Director Evangelos “Lucky” Papageorg requested the Board’s position on the appropriate age and condition of recycled parts written for by insurance appraisers. His request was based on receiving estimates from AASP/MA members that included parts that were either damaged or several years older than the model-year vehicle being

AASP/MA Executive Director Lucky Papageorg

repaired. He argued that these practices result in longer cycle times and greater burdens on the body shop.

Complete coverage of this meeting (as well as the May 9 ADALB meeting) is available in the Members Only section of aaspma.org.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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WE KNOW WHAT YOU’RE THINKING. YOU WANT TO KNOW IF THE PART’S IN STOCK , HOW MUCH IT COSTS, AND WHEN IT’S GONNA GET THERE. We get it.

You want the best part for a Toyota, but you’ve got to know when and how much.

Well, now you can. In addition to tools that can help you find and order the right VIN-based parts, now you can see if it’s in stock, schedule the delivery, even see your shop’s net price from your participating Toyota Dealer.* Now you’re thinking: “Cool!”

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For Toyota Genuine Parts please call one of these authorized local Toyota Dealers: Copeland Toyota 970 West Chestnut Street Brockton, MA 02301 Toll Free: 800-856-1172 Fax: 508-559-9264

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Prime Toyota of Boston 1605 VFW Parkway West Roxbury, MA 02132 PH: 617-469-1022 Fax: 617-469-8987 www.driveprime.com kmcisaac@driveprime.com

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New England Automotive Report

IRA Toyota of Manchester 33 Auto Center Road Manchester, NH 03103 Toll Free: 800-828-6076 Direct: 603-657-2410 Fax: 603-657-2419

Wellesley Toyota 216 Worcester Street Wellesley, MA 02481 PH: 800-734-0006 Direct: 781-237-4042 FAX: 781-237-3481

stirrell@iramotorgroup.com www.iramotorgroup.com

parts@wellesleytoyota.com www.wellesleytoyota.com

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

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

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BMW OF WARWICK 1515 Bald Hill Road, Warwick, RI 02866 Parts Direct at 401-824-2321 Fax 401-826-1204 ldisaia@penskeautomotive.com Hours: M-F: 8:00-5:00 Sat: 8:00-4:30 European model shown

New England Automotive Report August 2018 19

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[LOCAL] NEWS

Putnam Academy BBQ Celebrates Collision Repair On June 14, the Automotive Collision Repair Technology Department at the Roger L. Putnam Vocational-Technical Academy in Springfield welcomed hundreds of students, politicians, police representatives, collision repair industry vendors, shop owners, car enthusiasts and community leaders at the Sixth Annual Collision Repair Advisory Appreciation BBQ. Held every June as a way for Putnam Collision Repair Instructors John Kennedy and Ray Lapite to thank the community for their support of their program, the BBQ provides an evening of great food and fun and a way to honor the students who are working hard to pursue a career in the auto body field.

Springfield City Councilor Kateri Walsh attended the BBQ for the first time this year and addressed the crowd to show her support.

“I’m just so impressed with everybody I met here today…You guys are such a credit to the City of Springfield. Putnam [Academy] has such a wonderful reputation, and we hope that all of the students find wonderful jobs and stay here in the City of Springfield and help us grow.”

The evening included the drawing of various raffle prizes donated by West Springfield Auto Parts, Rick’s Auto Body (Springfield), I-CAR, Dr. Joseph Boyle and family and Peggy Bowe of the Putnam Academy.

The Putnam Collision Repair and Electrical Technology Departments wish to thank Larry Katz from Arnold’s Meats for supplying the chicken, ribs, hamburgers and hot dogs enjoyed at the BBQ. MASSACHUSETTS

Springfield City Councilor Kateri Walsh checks out Putnam Academy’s Collision Repair department with Springfield resident Russell Pepe.

For a raffle prize, Putnam Academy’s Peggy Bowe made pillows out of shirts donated by Steve Creanza of West Springfield Auto Parts.

Left to right: John Kennedy (Putnam Academy), Theresa Borecki (aide to Kateri Walsh), Springfield City Councilor Kateri Walsh and Ray Lapite (Putnam Academy)

Left to right: John Kennedy Jr., Craig Gridley (Cloot’s Auto Body), Steve Litwin and Steve Creanza (West Springfield Auto Parts)

BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

Left to right: Pablo Coss, Fred Santiago and Victor Gomez of “the R.O.M.E.O. Club” 20 August 2018

New England Automotive Report

Putnam’s Ken Downes had a blast serving the food.

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[NATIONAL] NEWS

PPG-Sponsored Tasca Racing Hits New Hampshire On July 6-8, the PPG-sponsored Tasca Racing team hit New Hampshire for the NHRA New England Nationals at the New England Dragway in Epping. The event was part of the 2018 NHRA Mello Yello Drag Racing Series. Team President and Driver Bob Tasca III – and his 11,000-horsepower PPG Ford Shelby Mustang – raced in the Nitro Funny Car Class and placed 12th.

PPG is supporting Tasca Racing throughout the 2018 season and will serve as an associate sponsor for Tasca’s remaining NHRA races for the year.

Tasca and PPG have a solid partnership that began when Bob III’s grandfather, Bob Tasca Sr., started using PPG products at his Ford dealership’s collision shop in Cranston, RI. Today, the Tasca Automotive Group has eight locations — including new car dealerships, collision centers and service centers — in New England. PPG’s

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New England Automotive Report

ENVIROBASE High Performance system is the preferred brand in the company’s four collision centers. The waterborne basecoat is also the paint of choice for the Tasca Mustang.

“PPG has been a Tasca Racing supporter since we started, and we’ve been loyal PPG customers for more than 20 years,” said Tasca. “It’s exciting to run PPG’s colors — I’m excited to have them as a sponsor.”

Tasca’s Shelby Mustang consistently hits speeds in the 325-mph zone in just over 3.8 seconds on the quarter mile when racing in the NHRA Funny Car category. He has won six national NHRA events. The team currently stands in the top 10 in its class.

For more about automotive refinish products from PPG, call (800) 647-6050 or visit ppgrefinish.com.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

Bob Tasca III with his sons Dylan (left) and Cameron

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[COVER] STORY By Alana Bonillo

HOW CAN AASP/MA

HELP? New & Returning Members Share Their Thoughts MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

Anchor Auto Body in Hyannis is one of the association’s newest members.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

Massachusetts mainstays Fitzpatrick Brothers Collision Repair Center 26 August 2018

New England Automotive Report

It’s

been less than 60 days since Evangelos “Lucky” Papageorg became AASP/MA’s new executive director, and the wheels are already turning in a new exciting and positive direction for the association.

As he discusses in this month’s Executive Director’s Message, Papageorg is traveling around the Commonwealth meeting with new and old shop owners alike to hear their concerns, be their voice and stress their importance to AASP/MA. “I have been extremely pleased by the warm welcome I have been receiving when calling on shops,” he says. “The owners have taken the time to discuss their concerns about the industry and issues they are facing on a daily basis. These issues

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run the gamut from insurancerelated problems to how to best obtain much-needed information regarding repairs. Invariably, the conversation circles back to proper reimbursement for the required procedures at a fair Labor Rate. They seem to be most pleased with the fact that someone is actually on the road meeting with them in their shops who understands the issues they face and can be of assistance to them.

Seeing the enthusiasm, and knowing that is contagious, means more shops will become members and help add to the voice of AASP/MA as we move forward.”

Rick Fleming of Anchor Auto Body in Hyannis is proud to be a new member of AASP/MA. He has been in the auto body business for 55 of his 69 years. After managing auto body shops, he got the opportunity to open his own business in 1981 and he has expanded it into the 11-employee business it is today. The shop specializes in high-end cars, such as BMW, and serves the auto body needs of local law enforcement.

“The association is moving in the right direction. The technology in these cars is intense, and we need as much information and access to such information as possible – and the association will bring that to us.

Lucky has a devotion and compassion for this business.”

Fleming had been a new member for just one day when he already was faced with an issue he needed guidance with; Papageorg immediately came forward with advice leading him in the right direction. He agrees that one of the biggest obstacles facing the industry is dealing with Labor Rates and trying to get proper compensation.

“I think this association seems to be spearheading the effort to get better compensation. They give us all an opportunity to band together and give us a better voice. The association struck me to be one voice for everyone and it will be a loud voice.”

A longtime shop owner, Francis Fitzpatrick of Fitzpatrick Brothers Collision Repair Center in Dorchester

is also positive good things are to come. He says he cut a check the minute Papageorg walked through the door to renew his membership.

He goes way back with the new executive director, having worked with him when Fitzpatrick was president of the Massachusetts Auto Body Association (MABA).

“We really took off, and got some great things done during his administration. He was that spark that made it what it became. I’m so glad to see him back.”

Like many, Fitzpatrick believes something has to be done about the ongoing issue with the Labor Rate, especially as many body shops are closing due to not being able to pay their mortgages and keep up with the equipment they need to make repairs with what insurers are currently paying.

“How can you work for $39 an hour when it costs $58 an hour to keep a man on the floor?”

Fitzpatrick’s shop floor is manned with experienced workers, some of whom – like him – are well into their 70s. Not surprisingly, he would like to see members of a younger generation join the industry.

“It’s tough to find new young blood in the business. We’d love to hire new people if we could find them.”

A shop owner since 1985, David Ellis of D&E Auto Body in Bridgewater hopes AASP/MA will go after the issues he believes are harming the industry.

At 61, he agrees with Fitzpatrick’s concerns over a labor shortage that appears to be getting worse.

“I am hoping Lucky will make something happen...The kids don’t want to take this trade up. No one wants to do it.”

Robert Hathaway of Hathaway Collision Center in New Bedford also renewed his membership through Papageorg after having been a member of AASP/MA on and off again for several years. Hathaway’s father started the shop in 1970 and he took over in 2001. Hathaway recently

Strength in numbers is key in helping AASP/MA improve the collision repair industry. With more shops renewing their membership or joining up for the first time, the association’s voice is growing louder and stronger. underwent an expansion, adding on a 7,000 square foot facility next to his existing shop.

“I am hoping eventually [AASP/MA] can do something with these bogus Labor Rates from the insurance companies. We are fighting tooth and nail to survive. It’s hard to get anyone to enter into this trade.

There’s going to come a time when everyone is going to be riding horses again.”

Hathaway adds that he hopes to see AASP/MA also look into the matter of health insurance, pointing out that it costs $12 an hour on a 40hour work week for one family plan.

Strength in numbers is key in helping AASP/MA improve the collision repair industry. With more shops renewing their membership or joining up for the first time, the association’s voice is growing louder and stronger. Be sure to refer to our “Where’s Lucky?” notice on page 11 to find out where he will visit this month. He can also be reached at (617) 574-0741 or via email at lucky@aaspma.org.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

New England Automotive Report August 2018 27

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28 August 2018

New England Automotive Report

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[OEM CERTIFICATION] PROFILE

AMERICAN HONDA MOTOR CO. NEAR: What are some of the general equipment and training requirements that a shop must meet in order to join ProFirst?

Rossana Alvarez of American Honda Motor Co.

This month, we sit down with American Honda Motor Co. Assistant National Manager Rossana Alvarez to discuss the automaker’s ProFirst Certified Body Shop program. Similar conversations with other automaker certification program representatives will be featured in future issues of New England Automotive Report.

New England Automotive Report: How many shops do you have participating in the ProFirst program in New England and nationally overall?

Rossana Alvarez: Nationally, we have about 1,340; in New England, we have about 78.

NEAR: In terms of capacity goals, does Honda have a cap in mind, or is it a matter of adding as many qualifying shops as possible?

RA: Our initial goal was 1,250 shops, which means our network is now full. However, additional shops were strategically added beyond the 1,250 and continue to be added in order to fill coverage gaps or to allow dealer owned shops to join the network. In addition to strategic additions, we have established a waitlist for any shops which are interested in being considered in the future if space in the respective area becomes available.

30 August 2018

RA: We have requirements in different business areas, which include a CSI System, Facility Standards, Basic Knowledge and Skills, Training and Tools and Equipment. The tool and equipment list is quite extensive to mention here; however, all of these requirements are available in more detail on profirstinfo. honda.com. In terms of training, we require a shop to: hold I-CAR Gold or VeriFacts VQ or Medallion status; have the suite of HON training course completed by two structural [or one structural and one nonstructural technician] and an estimator. Each role must take each of the HON courses and one person may not satisfy the requirement for multiple roles; and have a technician [preferably the structural technician] who completes the I-CAR BRZ02 welding course.

NEAR: When a shop becomes certified, what checks and balances are in place to ensure that the facility maintains the standards that led to them being certified in the first place?

RA: Shops are required to maintain all requirements for the life of the certification period, and this responsibility falls solely on the shop. While American Honda does not actively check on shops throughout the certification period, we have systems in place to alert of noncompliance.

American Honda reserves the right to suspend or terminate shops that do not maintain all ProFirst Certification requirements.

NEAR: What kind of time and monetary investment is needed to join the certified program?

New England Automotive Report

RA: The program fee is $2,700 annually, and certification and recertification is by invitation only. The time it takes to clear the certification process will vary from shop to shop.

Generally speaking, depending on how many of the requirements are already met prior to beginning the certification process, it could take anywhere from one year [for shops that need to acquire I-CAR Gold status] to as little as 45 days [for shops which already possess all the necessary training, tools and equipment].

NEAR: How often do you require re-training?

RA: Re-training is required as needed anytime any of the training requirements are lost.

For example, if a technician leaves your shop and that technician was satisfying the BRZ02 welding course requirement, then re-training is needed to meet that requirement once more.

NEAR: What is Honda’s position in terms of parts restrictions in the certification process?

RA: Parts restrictions are not a part of the ProFirst Certification process.

NEAR: Where is the best place for shops to go if they are interested in learning more about ProFirst?

RA: In addition to our general ProFirst Certified email address [profirst@ahm.honda.com], we have two great resources not only for newly interested shops, but even for those already part of the network: 1. The official ProFirst Certified informational website [profirstinfo.honda. com], and 2. Our team of Collision Market Managers [CMMs], who are dedicated to their respective Honda zones.

Please see the map below for reference.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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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 August 2018 31

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[INDUSTRY] UPDATE by John Walczuk, ZB Negotiations

Diminished

Value:

Vehicle Owners Lose Again — Part 2 of 2

The following is a continuation of John Walczuk’s article in last month’s New England Automotive Report.

Some insurance carriers use a database company to evaluate the information that is submitted with a diminished value claim. This particular database company is an approved evaluation provider for total loss calculations in some states, but it also provides diminished value services. The method they use for determining diminished value claims dissects the 32 August 2018

New England Automotive Report

repairs into cosmetic and major damage categories. Only the major damage portion is considered for diminished value, while the cosmetic component is eliminated. Trying to determine their methodology and its basis is unclear. What it does impact is the value they assign to a diminished value claim. Their method also considers OEM parts versus the use of non-OEM parts. The consumer loses again here, as non-OEM parts tend to cost less and may be seen as a poorer quality repair, thereby impacting the

vehicle’s resale value.

When non-OEM parts are used in repairs, and considering that the cost to repair impacts the calculation of diminished value, their methodology converts to a lower diminished value claim. In summary, the carrier pays less to repair the vehicle using less expensive parts and then values the DV claim lower based on the repair cost.

Once again, the consumer loses throughout the process, and only the carrier receives a financial gain.

Several major insurance carriers insist on post-repair inspections. It is unclear why, as their denial of some claims states they do not see any diminished value. Why go through the process if the denial is cast in stone?

This can only be seen as an attempt to appease the claimant without any real intention of recognizing their financial loss. These post-repair inspections are also performed by senior-level damage adjusters – who are not trained as vehicle value appraisers. A distinction needs to be made here between a vehicle damage adjuster and a vehicle appraiser. The vehicle adjuster works to determine what is needed to repair a vehicle to a safe, drivable condition, while the appraiser is trained to determine the repaired vehicle’s resale value after repairs. One company comes to mind that does not provide any written support for their determination of denial – just a form letter.

Another carrier also likes to perform post-repair inspections. You need to question both their ethics and why they re-inspect. After inspection, the claimant might receive a letter stating the vehicle was not repaired based on their estimate, the vehicle was not properly repaired or they do not see any diminished value. When asking for details behind their decision, one usually receives a response stating it is a “work product” and therefore not shareable. The term “work product” is often used in legal matters and implies privacy as disclosure could be damaging. It is apparent that this carrier has learned to use a legal term to avoid providing information or justification. Let us also not lose sight of the fact that the repair facility works for the insured, not the insurance carrier. Using the carrier’s estimate to repair a vehicle would imply that the

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carrier is assuming liability for the repair, which we know is not factual.

Challenging their approach through legal means is also an option and would require that they provide support for their “work product” response. Here again, postinspections are performed by damage appraisers, not value appraisers. This important distinction in qualifications seems to be a consistent issue in determining what diminished value really means.

It’s clear to see that the vehicle owner is at the mercy of the insurance carrier. The tragedy of diminished value claims is that the party or person affected was an innocent third party. When all is said and done, the vehicle owner will lose money as a result of the negligent acts of another and may have no recourse with the insurance carrier.

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*This article is not legal advice and may not reflect the opinions of AASP/MA and Thomas Greco Publishing.

John Walczuk is the director of client services for ZB Negotiations.

The company specializes in helping vehicle owners obtain fair market settlement offers for their totaled vehicles.

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New England Automotive Report August 2018 33

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New England Automotive Report

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New England Automotive Report August 2018 35

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[INDUSTRY] ADVICE

ASK MIKE

Do you have a question for Mike? Contact New England Automotive Report Editorial Director Joel Gausten at joel@grecopublishing.com or (973) 600-9288, and we’ll ask him in a future issue.

What Are the “Who Pays for What?” Industry Surveys?

This month, we “ASK MIKE” to discuss his ongoing work in coordinating the free “Who Pays for What?” industry surveys with John Yoswick of CRASH Network. We at New England Automotive Report hope you find this following exchange useful, and we encourage you to reach out to us if you have a question for Mike on this or any industry-related matter that he can answer in a subsequent issue.

New England Automotive Report: What led you and John to formulate the idea of the “Who Pays for What?” surveys, and what are the general goals that they aim to accomplish?

Mike Anderson: When I had my shops, there was a guy by the name of Charlie Baker, who had something called Collision Repair Industry INSIGHT. I used to subscribe to it, and Charlie would send out a survey that people could fax back to him; this was long before email. It was a onepage sheet that asked, ‘How often do you get paid for these things?’ I found great value in it; it helped my business at the time with not-included items and showing me that I wasn’t the only one. After I sold my body shops, I still continued to promote Charlie Baker’s efforts. One day, he stopped producing it; shops didn’t have it anymore. After a couple of years went by, I decided that if Charlie wasn’t going to do it anymore, I would do it – but do it a little differently and make it much more intense.

I didn’t have the time to do it, but I had the knowledge. I contacted John and asked him to do it as the third party, and I would provide all the questions and the commentary. He agreed, so we partnered up. We’ve been doing this for three years now.

Charlie’s survey was about 20 questions, but mine ended up being more than 100. We decided to break it down into quarterly surveys, with each quarter being a different topic. The first quarter of every year is always on refinish; the second quarter is on body work, then we have structural/mechanical, aluminum and miscellaneous shop supplies. There are 36 August 2018

New England Automotive Report

four different surveys every year.

It’s just grown. We had about 700 people take the first survey, then we got to 800 and we’ve broken 1,000 people a couple of times. We started out by showing who gets paid for the procedures ‘always,’ ‘most of the time,’ ‘some of the time’ or ‘never.’ They also have the option to say it’s a procedure for which they’ve never sought to be paid. From there, we break it down by insurer and compare DRP versus non-DRP. We sort it by region as well. For any state from which we get 100 responses to a survey, we will actually publish the results just for that market. We did that for Texas, which was the first state to reach that number of responses.

The survey has also grown to help us gather other statistics like the types of OEM software and management systems that shops are using. We’ve heard of shops using the survey to show insurance companies that they’re not the only facility charging for something. Other shops have told us they use it as a training mechanism to train their staff on what’s not included.

We’ve even had some shops tell us they use it to show consumers that what they’re asking for isn’t unfair or unreasonable when an insurer refuses payment.

My team and I conduct classes around North America. When we do a class, we ask people to bring an estimate so we

actually see estimates where people got paid. That way, we can substantiate and verify that people are truly getting paid.

Also, I will occasionally contact some of the survey participants – always confidentially, of course – and review some estimates with them. We work very hard to verify that the results are accurate and true.

We run the quarterly surveys for 30 days at a time, and they each take about 20 minutes for a shop to fill out. We’ve had some people say it takes too long to fill out, but if you spend 20 minutes to do a survey and then capture another hour on an estimate because of greater awareness, what is that worth to you?

One myth about the surveys is that people think they have to pay for the results. We do not charge shops anything for those; they’re free. They can go to my website, collisionadvice.com, and download earlier survey results for free. I fund the project myself 100 percent.

I’m very happy to announce the new partnership that we have with the Database Enhancement Gateway [DEG; degweb.org]. Every time John and I release the results of a survey, DEG Administrator Danny Gredinberg will include the results in the DEG’s response to any inquiry that supports or proves that something is a not-included operation. I’m very excited about that next level and partnering with the DEG.

NEAR: Some people in this industry are understandably reluctant to share information about their shop. How do you protect the information you receive from each participant?

MA: The only people who ever know who takes the surveys are John Yoswick and myself. We do not sell our database list, and we don’t share it with anyone. I know if I ever did that, it would breach confidence with everybody. I own all the intellectual property, and I own the database list. We never attach anybody’s name to it. We only release cumulative data, never any individual shop information.

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NEAR: Let’s talk about something that’s big in the industry right now. What information have you been able to derive concerning where the industry is in embracing pre- and post-repair scanning and getting paid for those procedures?

MA: Pre- and post-repair scanning has actually grown each year. More and more shops are getting compensated for it.

That’s encouraging, but it’s also discouraging because that should be 100 percent. Another thing that’s discouraging is when we ask shops, ‘Why don’t you scan?’ and they say they don’t think it’s necessary. That’s scary. That’s what led me to start the different webinars I’ve been presenting on OEMs each month. There is a link at collisionadvice.com for people to view the previous webinars.

NEAR: Are there any trends in particular that you’ve seen that were actually very surprising and changed your expectations of the results you had anticipated?

MA: A lots of times, people believe that DRP shops are not getting paid for

everything they do. In certain questions, I’ve seen that DRPs do get paid more than non-DRP shops. I have to believe that’s because those shops can just write the estimate and have it uploaded, and they don’t have somebody there negotiating with them face-to-face. I can also tell you there was an insurer that contacted me to tell me they saw a result and realized they were the only company not paying for something. They started paying for that one specific thing; they changed their policy.

NEAR: How did it feel to recently receive the SCRS Collision Industry Non-Individual Service Award for the work you and John have been doing with these surveys?

MA: It was definitely a surprise. People were texting me and saying, ‘Hey, you got this award. Congratulations!’ I replied, ‘What award?’ A couple minutes later, John was nice enough to text me. It’s just a complete honor. There are so many worthy people in the industry – I think of [California-based instructor] Toby Chess and how much he gives back – who could have been recognized with that award. It

was an honor; I appreciate it and I will never take that for granted. I just want my legacy to be that I made a difference.

For more information on the “Who Pays for What?” surveys and to sign up to take them, please visit collisionadvice.com.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

Mike Anderson is an Accredited Automotive Manager (AAM) and the former owner of Wagonwork Collision Centers, two highly acclaimed shops located in Alexandria, VA. He has served as a member of many industry organizations throughout his career, including the WMABA Board of Directors, the Mitchell Advisory Board, the MOTOR Advisory Board, the ASE Test Review Committee, the National Auto Body Council, the Collision Industry Conference and the Society of Collision Repair Specialists. Additionally, he is a past Virginia SkillsUSA chairman, serves as a facilitator for Axalta Coating Systems’ highly recognized Business Council 20 Groups in both the US and Canada and facilitates numerous courses for Axalta Coating Systems’ Educational Series. He currently offers expert industry consulting via his latest venture, Collision Advice (collisionadvice.com).

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New England Automotive Report August 2018 39

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[LEGAL] PERSPECTIVE

by James A. Castleman, Esq.

A Call for Reason in Settling Vehicle Loss Disputes

Under Massachusetts law, if an insured and their insurer disagree on the amount of loss under a collision or comprehensive claim, then – within 60 days of the insured having filed a proof of loss – either side has the right to demand that the dispute be resolved through a process very similar to binding arbitration, technically known as an “appraisal” process. The procedure for demanding the process and the steps to be followed are set out in the governing statute, which also requires that the substance of the process be set out in every auto insurance policy in the state that covers physical damage to a motor vehicle.

The process is not exclusive; if it is not demanded, then either side can try to obtain a resolution to their dispute by any other alternative that may be available. As examples, either side may sue the other (including an insured being able to sue the insurer in small claims court), or the parties could mutually agree to some other dispute resolution process (such as an attempted mediation or just choosing a mutually acceptable single arbitrator). But once either side demands that the appraisal process be used, both sides are stuck with it unless they mutually agree to a termination.

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resolve disputes as to the cost of repair or actual cash value (ACV) of a totaled vehicle. Unfortunately, the process sometimes turns out to be a disaster, taking much more time and money for both sides than it should. Although the process should work well if the parties are reasonable, sometimes one or both parties become unreasonable in how they proceed and entrench in their position. As a result, accusations become heated, the dispute goes on forever and either a damaged car remains unrepaired or an insured or their repair shop remains unpaid. Based on feedback that I am getting, a wide divide has risen recently between the sides when the appraisal process is demanded, causing a backlog in resolution of disputes and calling into question the viability of the process itself.

How Does It Work?

On its face as set out in the statute, the appraisal process seems pretty straightforward: Upon demand made by either an insured or their insurer within 60 days of a proof of loss being filed, both sides must select “a competent and disinterested appraiser.” The two appraisers then must choose “a competent and disinterested umpire.” If the appraisers cannot agree on an umpire within 15 days, then either the

insured or the insurer may request that the umpire be chosen by a judge in a court with jurisdiction over the place where the appraisal is to be made. The two chosen appraisers then conduct an appraisal, each separately stating the amount of the loss and the ACV of the damaged vehicle. If the two appraisers cannot agree, then they are to submit their differences to the umpire. A written agreement between any two determines the amount of the loss. The insured and the insurer each pay their own named appraiser, and they split the cost of the umpire.

The Problems Based on what is reported to me, problems often arise in choosing the two competent and disinterested appraisers – but the biggest problem appears to be choosing a competent and disinterested umpire.

When an insured (or their chosen repair shop on their behalf) names an appraiser, is that person truly competent and disinterested? If an insurer selects a staff appraiser from another insurer or an independent appraiser, can that appraiser ever truly be disinterested?

After all, that person depends on insurance business in order to make a living. If they were to appraise damage in a manner that is not favorable to the

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[LEGAL] PERSPECTIVE insurer, how will a staff appraiser be treated by their own insurer? Will an independent appraiser ever get business from that insurer (or any other insurer) again? How disinterested can they be?

And who exactly makes the determination that they are competent?

Is it enough that they are a licensed auto damage appraiser?

On the other hand, who is the insured or their repair shop choosing? If it is an appraiser from another repair shop, doesn’t that person have an interest in making sure that their appraisal is favorable to the insured, perhaps including certain items in their appraisal that many insurers would ordinarily balk at paying? Isn’t it in their best interests to include whatever they would want to get paid for a repair, rather than what may be standard in the industry? Can they truly be disinterested? And as with the insurer’s choice, how does one make the determination that they are competent?

Additionally, how are the chosen appraisers supposed to agree on some disinterested and competent umpire even if the appraisers are both apparently reasonable and competent? Especially at a time when a chasm seems to be growing between the insurance and auto body repair industries regarding payment for certain aspects of collision damage repair (e.g., OEM procedures, OEM parts, scanning, etc.), how can a mutually agreeable umpire be chosen who is not going to have a bias concerning these issues? Further, as to “competence,” the statute does not even require that the person be an “appraiser,” leaving it open that even an unlicensed person can be chosen. (For what it is worth, I was chosen as an umpire a few years ago, but the dispute was out of the ordinary by involving the legally proper method for determining the ACV of a specialty conversion vehicle for which there was no readily identifiable market value.)

When an agreement cannot be reached on an umpire, how is a court proceeding to be brought in order to have a judge choose? First, some type of “complaint” must be filed in court seeking to have a judge make the determination. Once the complaint is filed, it must be served on the other side along with a “summons.” Rules then allow the other side to have 20 days to file an “answer.” Once the answer is filed, there is no clear-cut way to get the case before a judge to make the decision, short of waiting an inordinate amount of time to get the case assigned for a trial date.

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The appraisal process is meant to be a relatively quick and inexpensive way to resolve disputes as to the cost of repair or actual cash value (ACV) of a totaled vehicle. Unfortunately, the process sometimes turns out to be a disaster, taking much more time and money for both sides than it should.

Once the case does go before a judge, how is the judge supposed to know who a “competent and disinterested” person is to be named as an umpire? The judge isn’t in the collision repair or insurance business and almost certainly has no knowledge of appropriate people that can be called upon to help resolve the existing dispute.

Meanwhile, the side that filed the complaint has paid a court filing fee of $195 and an additional fee to the county Deputy Sheriff’s office or a constable for serving the complaint and summons on the other side. Further, since this is a regular civil proceeding, both sides almost certainly paid attorneys to prepare various court documents, appear in court for preliminary procedural matters and then seek the judge’s ruling.

In addition to the lengthy delay in getting a resolution, and each side still having to pay their own appraiser and split the cost of the umpire, both sides may well have spent more in legal fees than either is seeking in the dispute.

Suggested Solutions Based on what is in the statute and the insurance policy, there is no facially apparent resolution of the problems with the statutory appraisal process. But if parties to the process can get on board, or if third parties are willing to get involved, there are some ways that the problems may be resolved - none of which would be ideal. But consider the following: (1) In the absence of agreement, the parties could consider a procedure where both could propose one, two or three names as a potential umpire, with the number to be mutually determined. If each party chose one umpire, then a flip of a coin could determine which person will serve. If each party chose two or three candidates, then the other party would have the right to strike one or two of the other’s choices, leaving one named by each side. Again, at that point, a flip of a coin could decide.

In order to do this, certain minimum criteria should be agreed upon first, such as all named candidates being licensed appraisers and that no candidate could be employed by or have a contractual relationship with either side. Perhaps the

candidates would have to be from a different geographic area than the parties. Perhaps the insurer would have to choose candidates from the collision repair industry, and the insured or their repair shop would have to choose candidates who were insurance staff or independent appraisers. Other indicators of true independence could be agreed upon if the parties were creative enough to develop those criteria.

The advantages of using this type of procedure would be that it speeds things up considerably – not requiring an agreement to the final choice for umpire but leaving it to a random coin flip – and would also save the cost of bringing a court action to have a judge decide. It may be that this would also promote more agreements between the initially chosen appraisers, since they may have doubts about convincing a randomly chosen candidate to agree with them.

(2) Seek to have the Auto Damage Appraiser Licensing Board (ADALB) develop a list of qualified potential umpires using criteria as the Board determines. Each person would have to certify that they would truly act independently and not be beholden to either side in a dispute. Then, either it could be left to the parties to choose an umpire from the list (perhaps again using a coin flip to choose between two candidates), or it could be left to the ADALB to make the choice in any given situation.

Again, the advantage of this would be that it would shorten the process and save costs. Since the ADALB represents both the collision repair and insurance industries, it is hoped that they would be able to develop criteria for admission to the candidate list that make sense and promote independence. The obvious disadvantage, of course, would be that it may be impossible to get the ADALB to voluntarily get involved in this process.

(3) Forget about the appraisal process whenever it is anticipated that there may be a problem in naming appraisers or choosing an umpire, and just let the courts adjudge disputes as to the amount of a loss. Rather than spending a lot of time and money on the continued on page 46

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[LEGAL] PERSPECTIVE continued from page 42

appraisal process, insureds (or their repair shops using an Assignment of Rights) could bring small claims actions to resolve such disputes. In the end, it is likely that the disputes would actually be decided more expeditiously, at a lesser cost, and by an almost certainly neutral clerk/magistrate. The disadvantages of this would be that the person hearing the case would not have a working knowledge of what it takes to fix a car, and that insurers could potentially remove the case to the ordinary civil docket. But if they do remove the case and the insured wins it, the court is required to award the insured their costs and attorneys’ fees under applicable laws.

Conclusion The statutory “appraisal” process appears to be in trouble. But if parties truly can be reasonable about it and agree to mutually acceptable procedural controls, then perhaps it can still be a useful way to resolve auto damage loss disputes.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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AUT M TIVE ADVERTISER’S INDEX Accudraft Paint Booths ........................OBC Audi Group ............................................39 Audi Shrewsbury ....................................43 Axalta Coating Systems ............................6 Best Chevrolet/Best CDJR ......................IFC BMW Group ..................................................14 BMW/Mini of Warwick ............................19 Colonial Auto Group..................................4 Empire Auto Parts ..................................33 Enterprise ..............................................34 First Chrysler-Dodge-Jeep-Ram ..............37 First Ford ..............................................37 First Hyundai..........................................37 Ford Group ............................................45 Gary Rome Hyundai ................................22 Gary Rom Kia..........................................22 Honda Group ..........................................31 Hyundai Group ......................................35 Imperial Ford..........................................45 Ira Subaru ..............................................13

Ira Toyota of Danvers ..............................12 Kelly Automotive Group ........................IBC Kia Group ..............................................38 Linder’s, Inc. ........................................46 Long Automotive Group ............................9 Mazda Group ..........................................16 McGovern Chrysler Jeep Dodge Ram ..........11 Mercedes-Benz of Shrewsbury ................43 Mopar Group ..........................................25 Nissan Group ..........................................28 Polyvance ..............................................39 PPG ........................................................3 Robertsons GMC Truck ............................29 Sarat Ford Lincoln ..................................44 Sentry Group ..........................................24 Sherwin-Williams ..................................29 Subaru Group..........................................41 Tasca Group............................................23 Toyota Group ..........................................18 Volvo Group ............................................21 VW Group ..............................................31 Wagner BMW of Shrewsbury ....................43 Wagner Kia of Shrewsbury ......................43 Wellesley Toyota/Scion ............................44 Wheel Collision Center ............................33 ZB Negotiations ......................................34

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