AASP/MA Receives Legal Opinion on Paint and Materials Charges

In an opinion letter recently received by AASP/MA, attorney James Castleman provides a legal perspective in regard to the requirements for paint and materials charges. In particular, the letter addresses AASP/MA’s inquiry regarding the effect of the Agreement for Judgment entered in the case of Commerce Insurance Company, et al v. Auto Damage Appraiser Licensing Board. The association asked Castleman for his opinion on how the case may impact the determination of such charges and whether an appraiser is required to use a published manual or other documentation to determine paint and materials costs if the formula of dollars-times-hours is not BEST CHEVROLET_NEAR0320.qxp_Layout 1 2/12/20 12:02 PM Page 1 accepted by a registered repair shop or licensed appraiser. Castleman’s opinion letter states that the below current version of the ADALB’s regulation is clear as to what is required as is not affected by the holding of the Commerce v. ADALB case:

With respect to paint, paint materials, body materials and related materials, if the formula of dollars times hours is not accepted by a registered repair shop or licensed appraiser, then a published manual or other documentation shall be used unless otherwise negotiated between

the parties. [Emphasis added.] “In my opinion, the Commerce v. ADALB case has no applicability to current requirements for determination of the cost of paint and materials when a licensed auto damage appraiser is preparing an appraisal of motor vehicle damage,” he writes. “That was because the case was based on specific language that was in the regulation issued by the ADALB but which is no longer in the regulation. The ADALB amended its regulation soon after the Agreement for Judgment was entered, and did so in response to the Judgment, in order to address and negate the effect of the case – as has been confirmed to me in no uncertain terms by a member of the ADALB at the time.”

Castleman’s complete opinion letter to AASP/MA (and the basis for his position) is available in the Members Only section of aaspma.org.

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