New England Automotive Report October 2015

N

E

W

E

N

G

L

A

N

D

AUT M TIVE MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

Serving the New England Collision and Mechanical Repair Industry

October 2015 U.S.A. $5.95

BREAKING DOWN

BORDERS: www.grecopublishing.com

AASP/MA Members Gain National Knowledge

2 October 2015

New England Automotive Report

October 2015 • Volume 13, No. 10

CONTENTS

DEPARTMENTS COVER STORY

by Joel Gausten

PRESIDENT’S MESSAGE 8 | Just the Facts

by Molly Brodeur

44 | BREAKING

DOWN BORDERS: AASP/MA MEMBERS GAIN NATIONAL KNOWLEDGE

SPONSOR SPOTLIGHT 14 | Membership Pays with Sarat Ford Lincoln

by Jacquelyn Bauman LOCAL NEWS 21 | AASP/MA and NESSARA Gear Up for New England Automotive Repair Expo 22 | New England Automotive Repair Expo Registration ADALB MEETING RECAP 26 | Used Parts Concerns Spur ADALB Debate

by Joel Gausten NATIONAL NEWS 28 | Multidistrict Litigation Faces New Obstacles

by Joel Gausten VENDOR SPOTLIGHT 34 | Empire Auto Parts: Real History, True Quality

by Joel Gausten LEGAL PERSPECTIVE 38 | Lessons from the Real World

by James Castleman AASP/MA MEMBER SHOP SPOTLIGHT 52 | Rotary Collision Centers

by Jacquelyn Bauman

ALSO THIS ISSUE 7 | TRAINING OPPORTUNITIES: I-CAR CALENDAR OF EVENTS 10 | A MESSAGE FROM THE EXECUTIVE DIRECTOR 15 | AASP/MA SPONSORS 16 | AASP/MA CASINO NIGHT SAVE THE DATE

17 | AASP/MA ANNUAL CASINO NIGHT SPONSORSHIP CATEGORIES 20 | AASP/MA WESTERN CHAPTER CLAMBAKE ANNOUNCEMENT 53 | AASP/MA MEMBERSHIP APPLICATION 58 | INDEX OF ADVERTISERS

New England Automotive Report

October 2015

5

6 October 2015

New England Automotive Report

N

E

W

E

N

G

L

A

N

D

AUT M TIVE October 2015 October 16, 2015

2015 AASP/MA Western Chapter Clambake Polish American Club, 139 Southwick St., Feeding Hills, MA (See page 20 for details)

October 24, 2015

New England Automotive Repair Expo Marlborough Courtyard Hotel, 75 Felton St., Marlborough, MA (See page 22 for details)

November 14, 2015

STAFF PUBLISHER

ART DIRECTOR

Thomas Greco (thomas@grecopublishing.com)

Lea Velocci (lea@grecopublishing.com)

DIRECTOR OF SALES

MANAGING EDITOR

Alicia Figurelli (alicia@grecopublishing.com)

Jacquelyn Bauman (jacquelyn@grecopublishing.com)

EDITOR

PRODUCTION

Joel Gausten (tgpjoel@verizon.net)

Donna Greco (donna@grecopublishing.com)

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

AASP/MA Casino Night Gillette Stadium Putnam Club, 1 Patriot Place, Foxboro, MA (See page 16 for details)

FOR A FULL LISTING OF UPCOMING AASP/MA EVENTS AND TRAINING OPPORTUNITIES, PLEASE VISIT WWW.AASPMA.ORG

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 © 2015 by Thomas Greco Publishing, Inc. Images courtesy of www.istockphoto.com/IStock Photo.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

AASP/MA EXECUTIVE COMMITTEE

in Massachusetts

October 1, 2015 Hazardous Materials, Personal Safety & Refinish Safety Fuller Auto Body, Auburn, MA

October 14, 2015 Replacement of Steel Unitized Structures Cape Auto Body, Plymouth, MA

October 5, 2015 Best Practices for High-Strength Steel Repairs Cape Auto Body, Plymouth, MA

October 19, 2015 Adhesive Bonding Cape Auto Body, Plymouth, MA

October 6, 2015 Squeeze-Type Resistance Spot Welding Fuller Auto Body, Auburn, MA October 7, 2015 Vehicle Technology & Trends 2016 Cape Auto Body, Plymouth, MA October 8, 2015 Steel Unitized Structures Technologies & Repair Fuller Auto Body, Auburn, MA October 12, 2015 Structural Straightening Steel Cape Auto Body, Plymouth, MA

October 22, 2015 Adhesive Bonding Fuller Auto Body, Auburn, MA October 24, 2015 2015 Ford F-150 Structural Repair Training Course IRA Collision Center, Danvers, MA October 27, 2015 Measuring Fuller Auto Body, Auburn, MA

For more information, visit i-car.com

PRESIDENT Molly Brodeur VICE PRESIDENT Adam Ioakim SECRETARY Gary Cloutier TREASURER Kevin Gallerani IMMEDIATE PAST PRESIDENT Paul Hendricks

AASP/MA STATEWIDE DIRECTORS COLLISION DIRECTOR Rick Starbard

AASP/MA CHAPTER DIRECTORS NORTHEAST CHAPTER DIRECTORS Alex Falzone Kevin Kyes SOUTHEAST CHAPTER DIRECTORS Michael Penacho Darlene Andrade MIDSTATE CHAPTER DIRECTORS Tom Ricci Ray Belsito, Jr. WESTERN CHAPTER DIRECTOR Peter Langone

AASP/MA EXECUTIVE DIRECTOR Jillian M. Zywien 12 Post Office Square, 6th Floor • Boston, MA 02109 Phone: (617) 574-0741 Fax: (617) 695-0173 Email: jzywien@aaspma.org

WWW.AASPMA.ORG New England Automotive Report

October 2015

7

PRESIDENT’S MESSAGE

JUSt thE FACtS I’d like to use my space this month to send an important message to our readers and the collision repair industry of Massachusetts. Following the recent retraction of ADALB Advisory Ruling 2014-01, several members and supporters have communicated their opinion that this represents a step backward for our industry. I’d like to explain AASP/MA’s position and hopefully lend some insight as to why this is actually an encouraging development.

Back in May 2014 when the Ruling was handed down, the Board in place at the time may not have completely considered all the implications that would come with it. It’s our opinion that, when personally inspecting a vehicle, you need to be physically present. The Advisory Ruling’s use of the word “personal” versus “physical”

8 October 2015

left it up to interpretation, and in the Division of Insurance’s eyes, “seeing” the vehicle (whether face to face or via digital imagery) was sufficient.

Here’s why we disagree: Let’s say you’re a motorist who uploads a photo of your loss. Your carrier may see $500 worth of damage, but what they don’t see is the additional $2,500 worth of damage that’s behind the bumper. You get your check and life goes on, but in the meantime, your vehicle is now structurally compromised in the event of a subsequent collision.

In our opinion, the Ruling also negated wording in 212 CMR 2.00 that establishes that an “insurer may exclude any claim for which the amount of loss, less any applicable deductible, is less than $1,500.” The inclusion of digital photos or videos unintentionally eliminated the $1,500 threshold,

New England Automotive Report

which opened the door for fraud.

When AASP/MA brought our concerns to the ADALB, they were surprised to learn of these unintended consequences and hadn’t considered them until we relayed what our members had been telling us. Once the new ADALB was in place, they made this issue their priority. The ensuing several-month-long dialogue on the Ruling culminated in its repeal on July 21, 2015.

Again, it’s important to note that this is not a step backward; it’s the righting of a wrong that will protect the consumers of Massachusetts in the long run. Lastly, I want to remind you all that the use of pictures and video is still allowed under 212 CMR 2.04(i) (Expedited Supplemental Appraisals), continued on pg. 58

New England Automotive Report

October 2015

9

A MESSAGE FROM THE EXECUTIVE DIRECTOR

AASP/MA’S 2015 CASINO NIght ON thE hORIzON! Dear Members, We are thrilled to be hosting our 8th Annual Casino Night on Saturday, November 14 in the Putnam Club at Gillette Stadium for the second year in a row! With this being AASP/MA’s most popular event, we aimed to create a night our members can be proud of. We want to thank you for your continued support and participation, and the Putnam Club at Gillette Stadium is the perfect venue to show our appreciation.

You asked and we listened! We surveyed our members, and we have added several new and exciting elements to this already outstanding event. With the help of VTA Entertainment, we have expanded our gaming options to accommodate last year’s demand. Every ticket includes an exclusive stadium tour. If you did the tour last year, there is still plenty to see. This year’s tour includes new stadium updates that are sure to be a behind-the-scenes experience you don’t want to miss. Our members who aren’t interested in gaming can dance the night away with the incredible backdrop of an empty Gillette Stadium. We have also invited a very SPECIAL GUEST who is sure to knock your socks off! Is it a former or current Patriots player? Is it

a Patriots cheerleader? Only time will tell. Check out future issues of New England Automotive Report and the member newsletter for our special guest teasers.

We have continued to improve the opportunities for our valued vendors and sponsors. In addition to our offerings last year, we have created new opportunities to showcase your businesses. These include our new raffle prize sponsorship, an opportunity in which your contribution will result in incredible prizes. Select the prizes yourself or leave it up to us, and we’ll make sure your contribution gets YOU noticed by our members.

Vendors and sponsors can find our new advertising and sponsorship packages on page 17. We have worked hard to develop new ways to recognize our valued partners. We support those who support the association, so if there is something you would like to do, AASP/MA is happy to work with you to create your ideal package. We want this to be a night your customers remember.

Throughout the year, the association strives to put on educational and informative events that are valuable to our members. Casino Night offers the rare occasion for you to relax and enjoy time away from the shop. After a winter like this one, you need it! We encourage you to invite your

Prompt & Dependable Delivery

Experienced and Professional Parts Team

Ask about our Competitive Prices

Fax Line: 508.699.4761 Parts Hours: Mon-Sat: 7:30-5:00

Fax Line: 508.673.6338 Parts Hours: Mon-Sat: 7:30-5:00

Fax Line: 508.316.8397 Parts Hours: Mon-Sat: 7:30-5:00

www.firstfordma.com

www.firstchryslerma.com

Parts Line:

508.699.4700 270 East Washington St. North Attleboro, MA 02760

www.firsthyundai.com 10 October 2015

Parts Line:

774.888.6666

292 William S. Canning Blvd.

Fall River, MA 02721

New England Automotive Report

Parts Line:

508.316.8410 280 East Washington St. North Attleboro, MA 02760

significant others, family members (21 years or older), employees and fellow shop owners to spend this memorable evening with you. These types of events are imperative to building a strong community focused on the success of our industry. This year’s Casino Night is sure to give our incredibly dedicated members an experience they will never forget.

Just like last year, this event will sell out. If you have not purchased your tickets, please contact the office today. I look forward to sharing the evening with you all on November 14!

Sincerely,

Jillian Zywien, Executive Director

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

AASP/MA Executive Director Jillian Zywien has been a senior account executive at Lynch Associates for over six years. She can be reached at (617) 574-0741 or via email at jzywien@aaspma.org.

New England Automotive Report

October 2015

11

12 October 2015

New England Automotive Report

New England Automotive Report

October 2015

13

SPONSOR SPOTLIGHT

MEMbERShIP PAyS wIth

If you’re part of AASP/MA, your membership can pay for itself through benefit and sponsorship programs like the one the association has with Silver Sponsor Sarat Ford Lincoln.

Known to many in the industry, Sarat Ford Lincoln has been around for 86 years, supplying Massachusetts shops with the parts necessary to complete many jobs in their bays.

Started in 1929 by John Sarat, Sr., the operation is now run by his son, John Sarat, Jr. (commonly referred to as Jack), who also owns Ford of Northampton, MA and Family Ford of Enfield, CT. Sarat Ford Lincoln has been a part of AASP/MA and its previous incarnations since before Parts Manager Jim Loomis joined the business in 1992.

“We were always very active,” Loomis says. “We went to the Clambakes, contributed to sponsorships and made donations. There were quite a few people who did business with us or had ties with us who were members. When we were approached to become sponsors of the association, we were more than happy to do it.”

Sarat Ford Lincoln offers a very special Dues Rebate Program for AASP/MA members. When members purchase parts at Sarat Ford Lincoln, a percentage of the total amount is given back to AASP/MA (one percent for existing customers and two percent for new ones) and credited towards their membership dues. For example, if a shop purchases $40,000 in parts a year, their membership is almost completely paid for. Through this program, member shops are rewarded for purchases they

already make through their day-to-day business. In addition to assisting customers with their membership dues, Sarat Ford Lincoln also provides quarterly discounts on products, holds a monthly raffle for a $100 Pride Gas card (every invoice of $50 or more gets a shop one entry into the raffle) and sponsors moreoemparts.com and fordparts.com/saratford, waiving all access fees for AASP/MA members.

“I’m always trying to help out and look out for the best interests of the members, as well as all of my customers,” Loomis explains. “AASP/MA is a great association to belong to because it helps the industry as a whole. Our Dues Rebate Program is enticing for potential members; the more people join the association, the more able they are to go after their goals, such as fixing the Labor Rate situation in the state.”

While Sarat Ford Lincoln provides specials and deals exclusively to AASP/MA members, they are concerned with the interests of the entire industry.

“Regardless of whether my customers are association members or not, I will work with them in any situation — good, bad or indifferent,” Loomis says. “I’m here for them, and my people are here for them. I want to make sure my customers’ customers are satisfied so that they get the repeat business they need. We’re all in this together, so we want to offer the good, loyal support that is so imperative in this industry.

So many other dealerships are just out there to sell you something. We’re in this for the long haul and want to take care of any problems that may arise.”

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

For more information on Sarat Ford Lincoln, see their ad on page 35 or visit their website at saratford.com.

AASP/MA WORKS TO MAKE YOUR DAILY BUSINESS IN THE AUTOMOTIVE SERVICE INDUSTRY AS EASY AS POSSIBLE. Through relationships with a variety of companies, the association provides member benefit services such as uniform services, SEO and website management, legal consulting services and so much more. Now we want to hear from YOU. Is there a service or company you think would make a great addition to AASP/MA’s list of benefit providers? Let us know!

Contact Executive Director Jillian Zywien at (617) 574-0741 or email her at jzywien@aaspma.org.

14 October 2015

New England Automotive Report

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

AASP/MA ASKS YOU TO PLEASE SUPPORT OUR SPONSORS!

AASP/MA NEWSLETTER SPONSOR

WOLPERT INSURANCE Contact AASP/MA at (617) 574-0741 / jzywien@aaspma.org for information on becoming an AASP/MA sponsor!

New England Automotive Report

October 2015

15

16 October 2015

New England Automotive Report

2015 AASP/MA Casino Night Sponsorship Categories This year will feature more gaming tables, more entertainment, more raffle prizes and a special guest appearance!

Tournament Sponsor- $7,500

Board of Directors Sponsor (2)- $750

Package Includes:

Package Includes:

Company logo printed on event admission tickets Company logo printed on all promotional/marketing materials Extensive coverage in our publications (NEAR & Damage Report) NEW Picture with the Board of Directors published in NEAR & Damage Report NEW Company logo displayed on the outside stadium signage (Visible from the hotel and parking lot) NEW End Zone signage (Jumbotron) complete with company logo/slogan NEW Ribbon screens (surrounding the stadium) will display company logo NEW Prominent dinner station signage NEW Prominent dessert station signage NEW Attendees on the stadium tour will receive promotional materials for your company President & ED will recognize your company during the speaking program Company banner (you provide) will be displayed at the podium Four event tickets with stadium tour and reserved seating NEW Electronic book ad will be displayed on several TVs throughout the event Company logo listed on AASP/MA website with a link back to your site A member of your company will “kick off” Casino Night!

NEW Electronic book ad will be displayed on several TVs throughout the event Recognition during President and ED’s speaking portion NEW Picture with the Board of Directors published in NEAR & Damage Report One event ticket with stadium tour Exclusive opportunity to personally present a small gift to each Board Member in recognition of their service to the association. (Your donation will pay for a ticket and two drinks for each Board member.)

“High Roller” Sponsorship- $5,000

Gaming Table Sponsor- $750

Package Includes:

Package Includes:

NEW End Zone signage (Jumbotron) complete with company logo/slogan NEW Ribbon screens (surrounding the stadium) will display company logo NEW Prominent dinner station signage NEW Attendees on the stadium tour will receive promotional materials for your company NEW President & ED will recognize your company during the speaking program Company logo prominently displayed at two gaming tables NEW Two event tickets with stadium tour and reserved seating Engraved “High Roller” trophy to present to the night’s winner Picture with winner published in NEAR & Damage Report NEW Electronic book ad will be displayed on several TVs throughout the event

Company logo prominently displayed on gaming table One event ticket with stadium tour NEW Electronic book ad will be displayed on several TVs throughout the event

SOLD TO:

SOLD TO:

Exclusive Casino Night Gift Sponsor- $3,000 Package Includes:

SOLD TO:

NEW End Zone signage (Jumbotron) complete with company logo/slogan NEW Prominent dinner station signage Company logo prominently displayed at registration Representative from your company present at registration handing out your gift Three event tickets with stadium tour NEW Electronic book ad will be displayed on several TVs throughout the event

“Pit Boss” Sponsorship- $2,500

Jim Simeone Texas Hold’Em Tournament Sponsor$1,000 Package Includes:

SOLD TO:

Company logo prominently displayed on final tournament table One event ticket with stadium tour NEW Picture with winner published in NEAR & Damage Report Engraved trophy to present to the night’s winner NEW Electronic book ad will be displayed on several TVs throughout the event

Spin & Win Sponsor- $650 We will provide our famous four-foot “Spin & Win” wheel with your company logo in the center of the wheel and your company name on five spokes. You provide the prizes. Each attendee will receive complimentary spins as part of the admission price. Spin & Win with your company logo will be listed on all publicity for attendees.

Package Includes: NEW Electronic book ad will be displayed on several TVs throughout the event One event ticket with stadium tour

End Zone Signage Sponsor (Jumbotron) - $750 Package Includes: NEW End Zone signage (Jumbotron) complete with company logo/slogan ($2,000 value) NEW Your company logo listed on the website with a link back to your site

Package Includes:

SOLD TO:

NEW End Zone signage (Jumbotron) complete with company logo/slogan NEW Prominent dinner station signage Company logo prominently displayed at one gaming table Two event tickets with stadium tour NEW Electronic book ad will be displayed on several TVs throughout the event

“Card Shark” Sponsorship- $1,500 Package Includes:

SOLD TO:

NEW Ribbon screens (surrounding the stadium) will display company logo Company logo prominently displayed at two gaming tables Two event tickets with stadium tour NEW Electronic book ad will be displayed on several TVs throughout the event

Cup Sponsor- $600 Package Includes:

SOLD TO:

Provide us with 200 cups imprinted with your logo (18oz minimum). Attendees will use these cups all night to hold chips and coupons.

One event ticket with stadium tour NEW Electronic book ad will be displayed on several TVs throughout the event NEW Your company logo listed on the website with a link back to your site

Company TableNEW PRICING- $1,125 Package Includes:

Dinner and Dessert Sponsor- $1,000 Package Includes: Two event tickets with stadium tour Prominent dinner station signage Prominent dessert station signage NEW Electronic book ad will be displayed on several TVs throughout the event

NEW Prominent company signage at a VIP reserved table NEW Ten event tickets with stadium tour (cost nine tickets) NEW Two drink tickets

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

New England Automotive Report

October 2015

17

18 October 2015

New England Automotive Report

Event Reminder!

2015 AASP/MA Western Chapter Clambake

ffle and a r t a e r G ner shop ow prizes!

Friday, October 16 5:45pm to 11pm Polish American Club

Great ra ffle shop ow and ner prizes!

139 Southwick St., Feeding Hills, MA Featuring a complete chicken dinner with clam chowder and steamers

Tickets are $30 Advance only through October 2. Tickets will not be available at the door.

For more information, please contact the 2015 Clambake Committee: Mike Beal: (413) 562-6764

Andre Marcoux: (413) 733-7134

Mike Boucher: (413) 525-4201

Don Vermette: (413) 786-8226

Gary Cloutier: (413) 568-3441

Paul Zollner: (W. Springfield Auto Parts): (413) 335-4666

Dan Lamontagne: (413) 268-3004

20 October 2015

New England Automotive Report

LOCAL NEWS

MASSACHUSETTS

and

BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

gear Up for NEW ENGLAND AUTOMOTIVE REPAIR EXPO On October 24, AASP/MA and the New England Service Station & Automotive Repair Association, Inc. (NESSARA) will join forces to present the New England Automotive Repair Expo (NEARE). held at the Marlborough Courtyard Marriott, the all-day Saturday gathering will allow industry leaders and participants to learn about an ever-changing repair and service landscape while connecting with some of the most prominent vendors in the field. with the inaugural edition of this special event just weeks away, AASP/MA Executive Director Jillian zywien is encouraged by the positive spirit surrounding the association’s work with NESSARA. “AASP/MA and NESSARA have had conversations in the past about hosting a joint event,” she explains. “Over the last year, both associations have grown and made changes. we agreed this year was the right time to come together to host the first-ever New England Automotive Repair Expo.”

Always exploring ways to be as representative of the industry as possible, NESSARA looks forward to ongoing collaborations with AASP/MA in growing the Expo into the region’s premier automotive-related event. “the intent to all of this is to allow the guys to have something that they can go to and get the same experience they would at the VISION Expo in Kansas City or any AASP national event,” offers NESSARA Co-Executive Director Matt LeLacheur. “this is our chance to get the national companies to come to us and tell us about what’s going on, as opposed to us having to go to them. It’s really a joint effort for all of us; it really helps the industry if we all find a way to turn this into the local event over the next few years.”

AASP/MA and NESSARA plan to achieve this goal by using the Expo as a platform for some of the most in-depth training available today. Collision industry speakers lined up to present include Rick Palmer of ComputerLogic (“Paint and Materials training Seminar”), Larry Montanez of P&L Consultants LLC (“Repair U – Repairs Done the Right way”) and Matt Mitchell, Esq. (“Never have Another Short Pay”).

Additionally, Massachusetts collision attendees will be treated to “Understanding the ADALb,” a special presentation by current members of the Auto Damage Appraiser

Licensing board on what the board does, how to file a complaint and current initiatives to rewrite CMR 211 and 212.

NESSARA members who take the time to experience the Expo will gain valuable knowledge from two of their industry’s most noted trainers, Cecil bullard and Eric ziegler. A 31-year veteran of the automotive service industry and a third-generation technician and owner, bullard has run some of the most successful independent shops in the United States (including one that was ranked in the top 10 by Motor Age for three years in a row). Eric ziegler is an ASE Certified Master technician who holds ASE Advanced Level Diagnostics certifications for cars, trucks and electric/hybrid vehicles (L1-L3). he specializes in module programming, driveability, electrical and network systems diagnostics. “both associations have worked tirelessly to provide our shared members with training programs that will improve their lives as business owners, as well as set a precedent for the industry,” offers zywien. “Each speaker is an expert in his field on matters that relate to shop businesses daily. these experts are here for the taking for one day only; our members should take advantage of this amazing opportunity.”

LeLacheur believes that one of the Expo’s greatest strengths will be its ability to showcase commonalities between NESSARA’s membership and the AASP/MA community. “while there are different techniques to running a successful collision shop as opposed to maybe a diagnostic and repair shop, you still have very similar business tactics that you should be following to make sure things are going properly in your business,” he says. “that would be one of the areas where I think there will be some crossover that guys will understand very quickly.” with the active participation of two very strong industry associations, the New England Automotive Repair Expo will surely be one of the most extensive and beneficial autorelated undertakings in Massachusetts history. More information on courses and how to register is available on pages 22 and 23.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

New England Automotive Report

October 2015

21

NEW ENGLAND AUTOMOTIVE REPAIR EXPO PRESENTED BY

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

Saturday, October 24, 2015 Marlborough Courtyard Hotel • 75 Felton St., Marlborough, MA

COLLISION TRAINING OPPORTUNITIES

REPAIR TRAINING OPPORTUNITIES

Paint and Materials Training Seminar 8:30am - 9:30am Speaker: Rick Palmer of ComputerLogic Through this in-depth training, collision shops will learn to better manage paint and material inventory and purchasing; provide accurate job costing for each vehicle repaired; and create a paint and material estimate and invoice.

The Art of Profitability – Improving Your Financial Position 8:30am - 5pm Speaker: Cecil Bullard Cecil Bullard is a 31-year veteran of the automotive service industry and a third-generation technician and owner. He has run some of the most successful independent shops in the United States (including one ranked in the Top 10 by Motor Age for three years in a row).

Repair U - Repairs Done the Right Way 9:30am - 11:30am Speaker: Larry Montanez, P&L Consultants LLC As an expert in the industry, Larry will provide an indepth course on how to repair aluminum body vehicles.

What tools do you need? How should you prepare? Larry has your answers! He will also describe his work in creating Repair University, an alternative to I-CAR. Understanding the ADALB 2pm - 3pm Speakers: Current ADALB Members Governor Charlie Baker appointed a new ADALB Board in June 2015. Come meet the newest Board Members and learn about what the ADALB does, how to file a proper complaint and learn about the rewrite of CMR 211 and 212.

Never Have Another Short Pay 3pm - 5pm Speaker: Matt Mitchell, Esq. Mitchell has outlined a proven system to ensure insurers properly compensate collision repair shops for the work they complete.

Essential Diagnostic Steps and Techniques for Driveability and Electrical issues 8:30am - 5pm Speaker: Eric Ziegler Eric Ziegler is an ASE Certified Master Tech with A9 Light Duty Diesel and MD truck certifications. He also holds ASE Advanced Level Diagnostics certifications for cars, trucks and electric/hybrid vehicles (L1-L3). Eric specializes in module programming, driveability, electrical and network systems diagnostics.

ATTENTION VENDORS! Sponsorships and exhibitor tables are now available! For more information or to purchase a tabletop exhibit space, please contact:

NESSARA (978) 667-7706 / info@nessara.org

AASP/MA (617) 574-0741 / ckane@aaspma.org

Morning Program: 8:30am - 11:30am Afternoon Program: 2pm - 5pm Trade Show Events: 11am - 7pm

REGISTRATION FEE FOR TRAINING: $99 TO REGISTER: CONTACT (978) 667-7706 / INFO@NESSARA.ORG / 22 October 2015 New England Automotive Report (617) 574-0741 / CKANE@AASPMA.ORG

NEW ENGLAND AUTOMOTIVE REPAIR EXPO PRESENTED BY

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

Saturday, October 24, 2015 Marlborough Courtyard Hotel • 75 Felton St., Marlborough, MA

SPONSORSHIP LEVELS PLATINUM: $2,500 INCLUDES ALL BENEFITS IN GOLD LEVEL, PLUS: • Premier Event Sponsor listing on all promotional flyers, e-blasts and on www.nessara.org/events & www.aaspma.org • Premier placement of exhibit booth: 6-ft. table with tablecloth • Company logo included on all on-site banners and materials • Complimentary attendance for four (4) to training session of your choice • Company recognized as sponsor of lunch & cocktail reception • Company logo will be projected on backdrop screens during lunchtime presentations • Opportunity to address the attendees during Trade Show Reception

GOLD: $1,250 • Exhibit booth: 6-ft. table with tablecloth • Complimentary attendance for two (2) to training session of your choice • Company logo included on on-site agenda • Company logo included on Training & Trade Show entrance banner • E-blasts promoting company involvement in event • Company logo and link on www.nessara.org/events & www.aaspma.org

OTHER SPONSORSHIP OPPORTUNITIES: BREAKFAST SPONSORSHIP - $750 TRAINING SESSION SPONSORSHIP - $500

LANYARD SPONSORSHIP - $500 ATTENDEE SPONSORSHIP - $100

PRIZES AND GIVEAWAYS: ALL SPONSORS ARE ENCOURAGED TO PROVIDE ATTENDEE GIVEAWAYS AND PRIZES THE DAY OF THE EVENT! *Successful prizes for similar events have included shop equipment, tools, flat-screen TVs, tablets, etc.

FOR MORE INFORMATION OR TO REGISTER:

CONTACT (978) 667-7706 / INFO@NESSARA.ORG / (617) 574-0741 / CKANE@AASPMA.ORG New England Automotive Report October 2015

23

24 October 2015

New England Automotive Report

New England Automotive Report

October 2015

25

ADALB MEETING RECAP by Joel Gausten

USED PARtS CONCERNS

SPUR ADALb DEbAtE Have you recently employed used suspension parts in a vehicle repair because an insurer mandated that you do so? If that’s the case, it might surprise you to know that you’re contributing to the violation of state regulations.

At their August 25 meeting at the Division of Insurance in Boston, the Massachusetts Auto Damage Appraiser Licensing Board (ADALB) addressed a motion by Board member Bill Johnson to adopt an Advisory Ruling that outlines how and when these automotive parts could be applied to a collision repair job. The discussion came as a result of complaints received by the Board that an insurer was mandating the use of these parts at shops in the Commonwealth.

Drafted by Johnson, the proposed Advisory Ruling cites various passages from 211 CMR 133.00 (Standards for the Repair of Damaged Motor Vehicles) and 212 CMR 2.00 (The Appraisal and Repair of Damaged Motor Vehicles) to clarify the guidelines that insurance and body shop appraisers should follow when considering the use of used parts during the repair process. In addition to stressing that these appraisers should negotiate for the use of these items instead of having an insurer simply dictate the practice, the Advisory Ruling as proposed strongly suggests that used parts containing wear and tear items should not be utilized in a vehicle repair at all. Johnson reasoned that their use could violate 211 CMR 133.04(1)(a), which states that a repair will not impair the operational safety of the motor vehicle. However, the draft stopped short of calling for an outright ban on these items, as that could result in extreme 26 October 2015

New England Automotive Report

cases where the use of things like used window regulators or steering columns are inappropriately deemed harmful to operational safety.

“I don’t think it’s within our authority to say that [these parts] are prohibited,” Johnson said. “I think we need to educate both parties that negotiations shall occur, and there may be those vehicles where somebody might want to put a used strut in. Both of those parties should be able to do that if they choose, but it should not be mandated by a certain insurance company and forced down a shop’s throat.”

(The passages referenced in Johnson’s draft Advisory Ruling – 211 CMR 133.04(2), 211 CMR 133.04(1)(a) and 212 CMR 2.04 (1)(e) – can be read online at tinyurl.com/ p4mhorq and tinyurl.com/p7g6klz. Additionally, Johnson recommended during the meeting that industry professionals read 211 CMR 133.00 and 212 CMR 2.00 in their entirety to gain a better understanding of the issues at hand.)

Speaking in favor of Johnson’s Advisory Ruling concept, ADALB collision industry representative Rick Starbard recommended the specific inclusion of suspension components in the final approved draft.

“We need to do this [Advisory Ruling] because it’s becoming a widespread problem now in the industry,” he said. “We have companies, especially the national carriers, writing used suspension components. It definitely creates safety hazards for these cars.”

After considerable discussion, ADALB Board member Joseph Coyne, Jr. suggested that the Advisory Ruling should include an insertion stating that the use of salvage

suspension and steering parts will impair the operational safety of the automobile.

Darrel Weston, a representative from used parts provider LKQ Corporation, appeared before the Board to offer his perspectives on the possible impact this kind of Advisory Ruling could have on his industry.

“You don’t want insurance companies forcing an issue down someone’s throat,” he offered. “At the same time, you’re kind of forcing the other side [by saying,] ‘You can’t use this’...At LKQ, we do sell used suspension [parts], but we test [and] we validate parts upon request.”

“I heard that ‘upon request,’” noted ADALB Chairman Gilbert Cox. Weston insisted that certain “wear and tear” items should not be immediately disregarded simply because they came from a used vehicle.

“To just say that a used suspension is [a] wear and tear [item] and no good is probably true off a 2004 Silverado, but maybe not so true off of a 2014 Murano,” he argued, later adding that LKQ stood behind its current testing process for the parts in question.

“We had this whole program developed by an outside engineer – well, an in-house engineer – to go through [the process] to show us that we can test the integrity of these parts,” he said.

Ultimately, Weston urged the Board to keep his company’s work in mind when considering creating the new Advisory Ruling.

“Your statement here is sweeping,” he said. “It covers

everybody, and I think it limits the consumer.”

Coyne opined that since “consumers are paying a premium to have their vehicles put back to pre-loss condition,” a vehicle’s age was not as important as its overall structural integrity. As he noted during the meeting, an LKQ item that came from a 2013 or 2014 Murano could have very serious safety issues if that vehicle “hit every pothole in the city” before being used for parts.

Peter D’Agostino, COO of Lynch Associates and a member of the AASP/MA executive team, addressed the Board to note an August 17 letter from Massachusetts Attorney General Maura Healey to the Division of Insurance relative to 211 CMR 133. In the letter, the Attorney General states, “We routinely receive complaints about the quality of motor vehicle repair. These regulations are necessary to ensure that insurers inspect repairs regularly and that substandard parts are not used.”

The ADALB voted to table the discussion until ADALB Legal Counsel Michael D. Powers had suitable time to properly review the matter and draft a revised Advisory Ruling that would incorporate Coyne’s proposed insertion.

The Board will then continue their review and discussion before taking a final vote on the document.

At press time, the ADALB was planning to hold their September 29 meeting at the Pathfinder Regional Vocational Technical High School in Palmer, reflecting a new desire to utilize different locations in addition to their regular spot at the Division of Insurance to conduct official business.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

New England Automotive Report

October 2015

27

NATIONAL NEWS by Joel Gausten

MULtIDIStRICt LItIgAtION FACES NEw ObStACLES The much-discussed Multidistrict Litigation (MDL) filed against a number of insurers by collision repair professionals in several states has suffered another setback.

On August 17, US District Judge Gregory A. Presnell confirmed many of the recommendations made in June by US Magistrate Judge Thomas B. Smith to dismiss complaints in lawsuits filed last year by dozens of auto body repair shops against multiple carriers. The charges in the suits include steering, price-fixing, unjust enrichment, tortious interference, antitrust violations and unfair trade practices. Collectively transferred to a Florida District Court to be heard as Multidistrict Litigation (MDL), the particular cases addressed in the report were originally filed in New Jersey, Arizona, Michigan, Alabama, California, Illinois, Oregon, Washington, Pennsylvania, Kentucky, Virginia and Missouri, with many of them represented by the Eaves Law Firm from Jackson, MS. In addition to auto collision repair facilities and a former body shop owner, the plaintiffs include the Alliance of Automotive Service Providers of Pennsylvania (AASP/PA).

In his 59-page June 3 report (available online at tinyurl.com/p8m2v5y), Judge Smith recommended that most charges in the cases be dismissed “without prejudice,” meaning that the plaintiffs would have an opportunity to amend their complaints. He argued that the plaintiffs failed to allege specific facts relating to each defendant insurer (or a group of defendants) that could illustrate particular offenses.

“The only specific allegations about most of the defendants in the pending cases are that they are insurers who are licensed to do business in particular states,” wrote Smith in his report. “[The] plaintiffs’ complaints do not include specific allegations linking each defendant to a pricefixing conspiracy, [nor] have plaintiffs explained how the conduct of one defendant in steering a customer away from one plaintiff is related in any way to the conduct of a different defendant in steering a different customer away from the same or a different plaintiff.”

Judge Smith added that although he didn’t believe that the plaintiffs had to name “for every body shop and insurer, a customer who was steered by that particular insurer away from that particular body shop,” they had to “at a minimum...allege sufficient facts specific to each defendant, or at least each corporate family of defendants, to tie that defendant to the wrongdoing alleged.”

In his August 17 response to Judge Smith’s comments, Judge Presnell offered his thoughts on the plaintiffs’ claims for unjust enrichment (with some portions edited slightly

by New England Automotive Report for clarity): Reduced to its essence, [the] plaintiffs’ position is that they are entitled to obtain what they believe to be the reasonable value of their services, and that [the] defendants are obligated to pay that amount, regardless of the price agreed upon between [the] plaintiffs and their customers at the outset of the transaction.

[The] plaintiffs cite no law in support of this novel theory. Instead, they simply argue that this Court is obliged to accept their well-pleaded factual allegations as true and draw reasonable inferences from those facts in the light most favorable to [the] plaintiffs...While this is a correct statement of law, it is also true that these well-pleaded facts must state a reasonably plausible claim for relief...And considering the facts in a light favorable to [the] plaintiffs, their complaints fail to state a plausible claim for unjust enrichment...The unjust enrichment claims will therefore be dismissed.

The plaintiffs were expected to file an amended complaint at press time.

In related news, a suit filed in August 2014 against State Farm by Louisiana Attorney General James D. “Buddy” Caldwell (“Frustration & Litigation: The Insurance Industry Gets Served,” NEAR, October 2014) has returned to its originating state after a controversial transfer to the US District Court for the Middle District of Florida.

At the time of the suit’s original filing, Attorney General Caldwell issued a press release accusing the nation’s top auto insurer of engaging “in a pattern of unfair and fraudulent business practices aimed at controlling the auto repair industry and forcing unsafe repairs on vehicles without the knowledge or consent of Louisiana consumers.”

State Farm later had the case removed to federal court and then transferred to the Multidistrict Litigation in Florida.

Attorney General Caldwell filed motions in December 2014 to have the case transferred back to the state court in continued on pg. 46

28 October 2015

New England Automotive Report

New England Automotive Report

October 2015

29

30 October 2015

New England Automotive Report

New England Automotive Report

October 2015

31

32 October 2015

New England Automotive Report

New England Automotive Report

October 2015

33

VENDOR SPOTLIGHT

EMPIRE AUtO PARtS:

Real history, True Quality The collision repair industry is full of challenges, but finding quality replacement parts shouldn’t be one of them.

Specializing in aftermarket crash parts (plus cooling parts, wheels and reconditioned/discounted OEM parts), Empire Auto Parts has been serving the Massachusetts auto body market since 1998.

ISO 9001:2008 certified in addition to boasting NSF P394 certification, Empire Auto Parts is comprised of three warehouse distribution centers (Massachusetts, Maryland and New Jersey) and 13 satellite locations in 13 Northeastern states. Headquartered since December 2011 in a 100,000-plus square-foot facility in Totowa, NJ, the company provides twice-daily deliveries to most of their locations.

The company was co-founded by automotive industry mainstay Steve Bollander, who first entered the auto business world with Auto Bumpers Incorporated in 1970. In 1981, he founded Champion Bumpers, which merged with POY Auto Parts Supply to form Empire in 1995. These days, customers are most familiar with the company through their work with Empire Sales & Marketing Manager Randall Bollander. A 25year parts industry veteran who got his start working for his father at Champion Bumpers, he currently serves as an advisor to the Automotive Body Parts Association (ABPA) Board of Directors and is a member of the Certified Automotive Parts Association (CAPA) Technical Committee. Additionally, he is committed to growing the industry relations arm of the business.

“I find that it’s important to understand the needs and business models of individual body shops, insurance companies and software companies,” he says. “We’ve also recently started donating parts to technical schools through the Collision Repair Education Foundation [CREF]. We’ve found

34 October 2015

New England Automotive Report

very thankful and worthy recipients there.”

Of course, the biggest key to Empire’s success has been their willingness to adapt to changing times. In 2009, the company expanded their services like never before by launching a parts ordering website at empireauto.us. The site features an online version of the company’s extensive parts catalog, which was previously only available in printed form.

“Even if people use the online parts portal as a reference and still call us or fax us, at least they can see all the parts and information we’ve gathered for them in a transparent way,” explains Randall. “It’s a great tool and one of our biggestselling features.”

In order to provide only high-quality products to customers, Empire maintains a diligent focus on quality control.

Their NSF distributor certification requires them to continually evaluate their customer service levels, track fill rates and have a process in place in the event of a part recall from the manufacturer.

“Body shop decision-makers are under pressure to increase cycle time, and we try to cater to them by having an easy-to-use online parts portal, a great customer service and delivery staff and an efficient system to track parts,” Randall says. “We are just as invested as shops are in parts being received free of damage or defects, so we have a dedicated quality assurance team to minimize issues.”

Empire’s commitment includes company representatives traveling overseas to ensure they are giving customers truly dependable parts.

“We realized quite a few years ago that we didn’t want to offer low-end, cheap aftermarket parts; we wanted to shoot for quality control, visit the Taiwanese factories and make sure that the products being created meet a level of standards that we wanted to put our reputation behind,” offers Randall. “Of course, CAPA- and NSF-certified parts helped that along, but visiting those factories allowed us to see with our own eyes what we were getting for our money.

“With CAPA or NSF as a third-party auditing system, we have a level of assurance from an outside force looking in and checking these parts for correctness,” he adds. “That has given us some level of confidence in selling those parts, and gives body shops a level of confidence as well.”

As for the future, Randall encourages readers to check out Empire’s ads in New England Automotive Report for regular promotions and unique opportunities to try great products at affordable prices.

Twenty years after launching one of the industry’s most prominent parts operations, Empire is poised to continue their upward climb by always providing consistent, reliable service to collision repair facilities in the Commonwealth and beyond.

As Randall says, “We are big enough to stock all the parts needed in a wide delivery area, and small enough to have face-to-face sales visits when requested by any size shop.

Nobody can make everyone happy, but we strive to make most people happy by doing the right thing. We want the shop owner or manager to spend more time running their business and less time worrying about their parts.”

For more information on Empire Auto Parts, please visit empireauto.biz or see their ad on this page.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

New England Automotive Report

October 2015

35

36 October 2015

New England Automotive Report

New England Automotive Report

October 2015

37

LEGAL PERSPECTIVE by James A. Castleman, Esq.

LESSONS FROM thE REAL wORLD Many of the ideas that I get for articles in New England Automotive Report come from questions I receive from collision repair shop owners, consumers or even other lawyers. this issue, I am writing about three matters that came from the “real world” in the past month.

ISSue 1: WHen IS A gArAgekeePer’S LIen noT A gArAgekeePer’S LIen? I got a call from an attorney who represents a major lender that provides new and used car financing. The attorney often gives me a call when he runs into an issue involving a conflict between his client’s security interest in a vehicle and a repair shop’s claim for money owed for repairs or storage.

Usually, I have to keep reminding him of the Massachusetts statute that clearly gives priority to a valid garagekeeper’s lien over the purchase money security interest of his client.

This time, however, the facts were different and a bit unusual. The owner of the car that was the center of the controversy had been sentenced to jail for a few years. His one significant asset was his car, which he wanted protected while he was serving time. The car owner talked to his soon-to-beformer boss, who owned a large construction company and had garages in which he stored his trucks and equipment, with room to spare to store the vehicle. The two worked out a deal, with the car owner promising to pay some type of compensation when he had finished his sentence in exchange for the construction company to store the vehicle.

All may have gone well, except that with no source of income, the car owner stopped making car payments to the finance company. The lender gave notices and attempted to repossess the car. As one might imagine, the owner of the construction company resisted, since he had not yet gotten paid for storing the car. So, the lender’s attorney started a lawsuit for “replevin” to get a court order for release of the car to his client, who could then sell it and get paid. In response, the construction company owner brought a counterclaim against the lender, seeking to enforce his garagekeeper’s lien that had arisen from storing the vehicle. As anyone who has been reading my articles for a while should know, a valid garagekeeper’s lien trumps a finance company’s prior security interest.

But did the construction company have a valid garagekeeper’s lien? In my opinion, NO! In fact, there appeared to be at least two very big problems with the construction company’s claim.

First, according to the statute that governs garagekeeper’s liens, it applies only to “persons maintaining public garages for the storage and care of motor vehicles brought to their premises or placed in their care by or with the consent of the owners thereof, and persons engaged in performing work 38 October 2015

New England Automotive Report

upon or in connection with the inspection, reconditioning and repairing of motor vehicles…“ While the construction company has garages, they are not public ones, nor are they principally maintained for the storage of vehicles (nor is the company in the car repair business). As a result, the garagekeeper’s lien statute does not appear to apply to them, and they cannot have a valid statutory garagekeeper’s lien.

There is, however, Massachusetts case law that says that the construction company could arguably have a “common law” lien against the vehicle – although that is also questionable. But even if they could establish such a lien, it would not have priority over the finance company. Another statute (the one that governs the priority of liens) says that, in order for a lien to take precedence over a lender’s security interest, the lien must be one “which secures payment or performance of an obligation for services or materials furnished with respect to goods by a person in the ordinary course of the person’s business.” The storing of vehicles for money is clearly not in the ordinary course of the construction company’s business.

Bottom line: The finance company should be able to obtain a court order to get the car and should be able to sell it, which means the construction company loses out.

ISSue 2: WHen DoeS THe MASSAcHuSeTTS AuTo InSurAnce cLAIM SeTTLeMenT SySTeM go ouT THe WInDoW? A shop owner called me with a problem getting a supplement on a car that had been brought to his shop for repairs.

The vehicle owner walked in with his insurer’s appraisal, and the sheet was clearly inadequate. The shop owner called the insurer to request that an appraiser be sent out to reinspect and to write a supplement, but the insurer refused. The insurer said that their appraiser had looked at the car and written a fair estimate, and that they weren’t going to budge.

The shop owner called me to ask how they could do this.

It turns out that there were some quirks in the fact pattern. Most importantly, the vehicle was insured in another state, with a company that isn’t even licensed in Massachusetts. On top of that, the damage was incurred in the other state. The car was drivable, however, and the vehicle owner was changing jobs and moving here, so he waited to get the car fixed until he got here.

Since the car was now in Massachusetts, didn’t the insurer have to follow our laws, including the direct payment

laws and the Auto Damage Appraiser Licensing laws and regulations? Weren’t they required to send an appraiser to reinspect the vehicle? Weren’t they required to negotiate?

Couldn’t they be reported to the Massachusetts Division of Insurance for violating our laws?

The answer to all of these questions is NO! This car was insured under a contract entered into in another state. The policy was not subject to the requirements of Massachusetts law, and the insurer was not required to follow Massachusetts law in these circumstances. Further, the Massachusetts Division of Insurance would have no jurisdiction over this insurer, since it is not licensed here and does not do business in this state.

If the insurer had sent out a Massachusetts-licensed appraiser, that appraiser may have had to follow the requirements of the Auto Damage Appraiser Licensing Board (ADALB) statutes and regulations, since he or she would be appraising the damage here and be licensed here. But that was not the case, and the law of the state in which the car was insured and the insurance policy issued would govern the settlement of the claim. Perhaps the insurer was actually violating the other state’s laws, or even the terms of the policy.

But that was strictly between the customer and the insurer, and there is nothing that could really be done about it here.

Bottom line: The settlement of an auto damage claim for a car that is insured in another state is governed by the law of the other state and the insurance policy written in that state.

Both the other state’s laws and the terms of the contract of insurance could be quite different from our laws and insurance policies, but their laws and contract govern, not ours.

As it turns out, the shop owner told me that the customer was a pain in the butt anyway, so he did not mind telling him that he couldn’t fix the car for what the insurer was willing to pay, and that he had to take his car out of the shop. Everyone (except, of course, the car owner) ended up happy.

ISSue 3: WHen IS A covereD cLAIM noT A covereD cLAIM — even THougH IT SHouLD HAve been?

I have to be careful describing the facts of this third issue (as to avoid disclosing confidential information), so the details have been changed somewhat.

I was contacted by a woman whose high-end car had been badly damaged while it was sitting in her driveway last winter. The incident had occurred after a couple of intense snowstorms, and after some of the snow had melted and then refroze. The woman told me that she did not know exactly how the vehicle had been damaged, but she surmised that someone had come around the corner and down the hill in front of her house too quickly. Not being able to stop, she believed the offending driver had slid off of the main road and hit her car straight on the side, pushing it into a retaining wall.

The driver had not stopped, and had apparently just taken off.

The woman made a claim with her insurer and had actually come to an agreement as to the value of the car. At the insurer’s request, the totaled vehicle had been towed to the insurer’s chosen tow yard.

That’s when things turned hairy. Because of some information regarding the lienholder, the insurer’s Special

Investigations Unit (SIU) got involved, and the insurer held off paying the claim. The woman obtained the services of a lawyer (not me), who tried to negotiate with the insurer. The insurer resisted and scheduled an examination under oath that went on for hours. Disputes arose between the woman’s attorney and the insurer’s attorney as to information that was or was not provided. The insurer had an independent engineer look at the car, the insured sought advice from a couple of body shops, a demand letter was sent (under the Consumer Protection Statute, M.G.L., c. 93A), legal fees climbed and the insurer dug in its heels.

After all of this, the woman came to see me, having been referred by one of the body shops she had gone to. I asked to see all of the documents that had accumulated, pictures that had been taken, the transcript of the statement under oath and anything else having to do with the claim. I then spent a good deal of time reviewing this mountain of materials.

Upon review, it appeared to me that the woman may have had at least a tenable claim, but that there was probably enough for the insurer to be able to avoid 93A punitive damages. I had a long conversation with the woman, pointing out the potential problems with her case and inconsistencies in her statements – although these were inconsistencies that probably could be explained in a court proceeding.

I had not realized it, but by raising the issues that I saw, the woman appeared to think that I was accusing her of doing something wrong. After about 40 minutes of this, she blurted out to me,“Okay, my husband hit the car.” Apparently, the husband had a business in which he used a truck, had come home late after a long day at work and had slid on the ice into the woman’s car. They thought that the insurer would not pay under these circumstances.

As it turns out, the insurer probably would have paid under those circumstances if the woman had just been truthful with them. As long as the damage had truly been the result of negligence and not the result of an intentional or reckless act, the woman’s insurer would still have been on the hook.

Unfortunately, it was now too late. A basic and important clause of the Massachusetts auto insurance policy requires an insured to cooperate with the insurer in the investigation of a claim. “Cooperation” includes not lying to the insurer about the claim. Had the woman been honest, she probably would have been able to settle this claim. But she overthought the matter, and had now (in my opinion) lost her chance to ever collect.

Bottom line: If you have an auto damage claim, be honest with your insurer about what occurred and cooperate with them in order to avoid breaching your contract of insurance.

And talk to a lawyer about a claim before you wrongfully think that it won’t be covered.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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.

New England Automotive Report

October 2015

39

40 October 2015

New England Automotive Report

New England Automotive Report

October 2015

41

42 October 2015

New England Automotive Report

New England Automotive Report

October 2015

43

COVER STORY

by Joel Gausten

BREAKING DOWN

BORDERS: AASP/MA Members Gain

National Knowledge on September 8, AASP/MA proved that you can learn about the national collision repair industry without having to leave the bay State.

For its final Statewide Meeting of 2015, the association welcomed special guest speakers who offered intriguing looks into how collision repairers in other states are adapting to the constant changes around them. This information gave AASP/MA attendees a level of understanding into the United States industry that was far beyond what is typically offered in a state association setting. building a Specialized Society AASP/MA’s goal of bringing national views straight to the Massachusetts auto community was achieved at the Statewide Meeting thanks to an extensive presentation

by Aaron Schulenburg, executive director of the Society of Collision Repair Specialists (SCRS). A national organization committed to educating, informing and representing the collision repair professional, SCRS currently boasts nearly four dozen state affiliate associations including AASP/MA. This wide reach enables Schulenburg and the SCRS Board of Directors to draw useful news and information from a variety of markets and identify trends that could impact the larger industry.

The association’s work in this regard is best represented through its news 44 October 2015

division, repairerdrivennews.com, a free website launched in January. According to Schulenburg, the site offers daily news and analysis that gives users “an opportunity to connect the dots on what’s going on in the background of not only the industry, but what’s going on in technology, the economy and politically that may be impacting small businesses operating in this field.”

One of the primary goals of repairerdrivennews.com is to post news items that are not typically found in more traditional automotive collision media resources. Content on the site can range from updates on proposed national policies that could affect the number of employee sick days that a small business needs to provide (tinyurl.com/ ofmxsss) to updates on government oversight of vehicle safety ratings (tinyurl.com/ptsvqu8). In Schulenburg’s mind, this uncommon approach to delivering industry news aims to provide a broader-thanusual look into how something happening in another part of the country could ultimately impact the day-today lives of repairers in the Commonwealth.

“Having a good understanding of how the political landscape drives some of the vehicle technology changes taking place can give us some insight and foresight into what the market is going to do and how you need to adapt and address those types of things in your business as

New England Automotive Report

you operate,” he said.

In addition to receiving pertinent national news, shops that visit repairerdrivennews.com get access to regular information on everything from better protecting employees against isocyanates (tinyurl.com/ qakz76q) to keeping workers and vehicles safe from aluminum dust (tinyurl.com/qhvceqj).

“It’s very common to walk into a shop and see a technician blowing off a vehicle, and that’s how they clean up,” noted Schulenburg. “The problem is that, when we start working on mixed-material vehicles and fleets, you can’t do that any longer.

We have to have better hygiene in the shop and remove contaminants from the air with things like manufacturer-specified wet-dry vacuums, rather than spreading it throughout the work space.”

With greater pressure being applied to automakers to reduce emissions, Schulenburg believes that the industry will soon see considerable changes to joining methods, rivet usage and the application of structural adhesives.

“Adhesives are going to be used a lot more on stronger materials that are thinner, and it’s going to make it much more difficult for you to repair versus replace,” he offered. “It’s going to take a change of methodology and a change of mindset for both your estimators and technicians as [they] approach these repairs. It’s also going to change the discussion

that you have when you’re negotiating these repairs...You’re still going to come across the conflicts and struggles of uninformed adjusters coming in and saying, ‘Well, can’t you just put X hours here?’ In reality, these more-advanced materials damage differently and repair differently, and there are processes that can’t be done the way that we’ve done them in the past.”

Of course, one of the greatest benefits of repairerdrivennews.com is the ability for users to gather facts

across the industry.

“It is the best program that you can attend throughout the year if you want to go to something at a national level,” Schulenburg said.

Above all, Schulenburg stressed the importance of AASP/MA members utilizing tools like repairerdriven news.com and paying attention to the events shaping their profession.

“You can’t just be a member of the association,” he said. “You really do have to be engaged, be involved and be connected to the information Instructor George Tuchman discussed repairing and replacing structural components on General Motors’ vehicles.

SCRS’ Aaron Schulenburg detailed his association’s efforts to educate and inform the national collision repair community.

and details from other states that could help in their efforts to improve the industry back home. As an example, Schulenburg noted that the Rhode Island collision industry’s attempts to establish a class rating for body shops in their state led to Senate testimony by the Property Casualty Insurers of America (PCI) that insurers should be able to make the decision on what to pay repairers based on the fact that carriers are the ones who sell insurance and pay the repair bills. However, he added that at least one insurer’s motion to dismiss a high-profile RICO case against them and other carriers (“Frustration & Litigation: The Insurance Industry Gets Served,” NEAR, October 2014) stated that the “plaintiffs assert that prevailing rates should take into account repair shops’ varying level of expertise, but cite no contractual or statutory

obligation to do so.” This kind of contradiction (where the insurance industry argues against laws that would diminish their control over rates, while also arguing that there is no law requiring them to recognize gradations in repair facilities) can only be uncovered by closely following activities in a number of states at once, and connecting the dots between the arguments made in different venues.

“By putting all these pieces together, writing about them and publishing them [on repairerdriven news.com], it gives state associations the ability to help paint these pictures in front of legislators and whoever else to really show the full-court press that this industry is under,” Schulenburg said.

When not working to distribute critical news and information to the industry at-large, SCRS devotes its resources to developing new educational opportunities for members and non-members alike. This focus is evident in the association’s Repairer Driven Education (RDE) Series at the annual SEMA Show in Las Vegas.

This year’s SEMA (held November 3-6 at the Las Vegas Convention Center) will feature more than 30 RDE classes on a variety of topics including consolidation, post-repair inspections, structural adhesive bonding, repair planning considerations for welded components and more. RDE courses are presented by leading subject matter experts from

GM’s Jeffrey Shaw provided attendees with links to informative OEM-related websites.

that’s being put in your hands for it to be effective in helping you manage your business.”

More information on the SCRS RDE Series at SEMA (including how to register) is available at tinyurl. com/qggdhj6. More information on SCRS can be found at scrs.com.

AASP/MA President Molly Brodeur encouraged attendees to take advantage of the many national perspectives offered by Schulenburg’s presentation.

“Suffice it to say, we’re sort of in a bubble here in Massachusetts, and we don’t always have access to what’s going on outside of our borders,” she said. “We’re excited to have Aaron come here and talk to us about some things that have been going on, and some legal matters that have been happening around the country.”

New England Automotive Report

October 2015

45

COVER STORY An oeM Perspective Schulenburg’s talk was preceded by a General Motors seminar on structural repair given by instructor George Tuchman. Sponsored by R.H. Long Automotive, the clinic discussed repairing and replacing structural components on GM vehicles, touching on the importance of measuring, cutting and welding in this process. Additionally, Tuchman discussed recommendations for aluminum repair procedures for front and rear rails and showed

two informative welding instructional videos produced at the Miller Training Center in Troy, MI. Throughout the presentation, Tuchman promoted the importance of having the proper training, equipment and tooling to bring a damaged vehicle back to OEM specifications. This runs the gamut from making sure the tools used to service aluminum components are isolated from others at the shop to checking the quality of your measuring equipment to reduce the

possibility of human error.

“When we start to set up a vehicle on a frame machine, that vehicle must be anchored securely and torqued within specifications,” he said.

GM Wholesale Specialist Jeffrey Shaw urged the shop owners in attendance to utilize genuinegmparts.com, a special site that provides service bulletins and warranty information for General Motors vehicles as well as links to training resources including I-CAR and ACDelco. Additionally, he recommended that repairers check out repairlinkshop.com (a comprehensive OEM mechanical parts business-tobusiness ecommerce solution) and collisionlinkshop.com, a site that gives access to exclusive OEM parts programs.

(For additional insights from GM, see our coverage of their October 14, 2014 seminar in Holyoke that begins on page 40 of our November 2014 issue, available online at tinyurl.com/pfof8ag.)

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

NATIONAL NEWS continued from pg. 28 Louisiana. On August 19, the Attorney General announced that his request was granted. (Interestingly, it was Judge Presnell who made this decision in Caldwell’s favor.)

Calling the decision a “victory for Louisiana consumers,” Caldwell was quick to re-confirm his intention to take State Farm to task.

“We are pleased that the Court ruled in our favor and will be sending the case back to Louisiana, where it belongs,” he offered in a prepared statement. “We look forward to moving this case forward for the benefit and safety of our citizens.”

Caldwell added that the suit aims to change the culture of unsafe business practices led by State Farm in the auto insurance and repair industry.

State Farm currently holds the largest share of auto insurance policies in Louisiana. In 2012, State Farm wrote one-third of all auto insurance policies in the state, totaling over $1 billion in premiums.

46 October 2015

New England Automotive Report

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

New England Automotive Report

October 2015

47

48 October 2015

New England Automotive Report

New England Automotive Report

October 2015

49

50 October 2015

New England Automotive Report

New England Automotive Report

October 2015

51

AASP/MA MEMBER SHOP SPOTLIGHT

by Jacquelyn Bauman

ROtARy COLLISION CENtERS Sometimes, all it takes is a phone call to get involved. At least this is the case for Rotary Collision Centers’ general manager, Jon Porkka, Jr. Jon Jr. began working full time at his father’s shop after finding that his original dream career of becoming an architect was too monotonous a road to continue down. He had always wanted to participate in the industry on a larger scale; however, he was unsure of how to go about doing this until just recently.

“Just a couple of months ago, I got a phone call from Kevin [Gallerani] from Cape Auto Body asking to come to my shop and talk to me about the association,” he explains. “Out here in Cape Cod, we’re secluded. We don’t get a lot of news other than in online publications. It’s hard to know everything that’s going on. I had been waiting for someone to come down to me because I didn’t have time to [look into AASP/MA] myself. He came down, we spoke about the association and I told him to sign me up.”

Jon Jr. hopes to gain new and beneficial relationships from his involvement with AASP/MA. He intends to

Always working to improve himself, his business and his customers’ satisfaction levels, Jon Porkka, Jr. finds joy in discovering new ways to conquer the challenges and changes that accompany his profession.

discuss business with other shops in Massachusetts and the Northeast to explore what they’re doing, obtain new ideas and techniques on how to improve his business and to share some of his own.

Always working to improve himself, his business and his customers’ satisfaction levels, Jon Jr. finds joy in discovering new ways to conquer the challenges and changes that accompany his profession.

“My favorite thing about the work that I do is making improvements and changing the business for the better; I like the evolution of it,” he says.

“When I came back to Cape Cod and started working in the shop with my father again, I fell in love with the business. After coming from studying to be an architect, I loved that it was something new every day. It wasn’t the same thing day in and day out. I had a completely different task than the day before. To me, it was exciting to learn so much rather than pushing the same papers off my desk every day.”

One of the sources of Jon Jr.’s incredible work ethic is his father, who

gave his daughter (and Jon Jr.’s twin) a car as a gift on her 15th birthday.

When he asked his father where his car was, he was informed that there was a totaled Jeep Grand Cherokee waiting at the shop. Every day before and after school, he would go to the shop and work on it. By the time he got his license on his 16th birthday, he was driving the car in pristine condition.

“My father inherited Rotary from his father, and he grew it from one shop to six locations,” he says.

“Watching him and his work ethic and [what he did] to give me what I have in life has had the biggest impact on me. I love working with him, trying to make his life easier. I try and do everything in my power to help him work less and to repay him for all he’s done for me.”

Despite Rotary being a multi-location shop, the company’s family environment permeates from the top with the Porkkas all the way down. Many of the 50-plus employees at Rotary Collision have family members employed there as well, either working alongside one another or at different locations.

With managing six shops ranging from five bays to 18 being an extremely time-consuming undertaking, Jon Jr. spends as much time away from the business as he can with his wife, Brittany, and their three children: Jacob (8), Madison (4) and Noah (almost 2).

With so much passion for growth and now with AASP/MA on his side, Jon Jr. is looking forward to the future of the industry and his presence in it.

As he says, “I always knew I wanted to do something and be in the picture in a bigger way than just at my shop. Now, I am.”

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

52 October 2015

New England Automotive Report

2016 MEMBERSHIP APPLICATION MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

As a member of the Alliance of Automotive Service Providers of Massachusetts (AASP/MA), I will abide by the association’s bylaws and code of ethics. I understand that membership in AASP of Massachusetts is non-transferable, and I must remain current with my dues in order to be a member in good standing. I understand that if I discontinue my membership that I must immediately cease using any association promotions, logos or materials. Additionally, I understand that as part of my AASP of Massachusetts membership, I will receive New England Automotive Report, the official publication of AASP of Massachusetts, faxes, emails and other mailings.

*** PLEASE TYPE OR PRINT LEGIBLY *** BUSINESS INFORMATION: Mr.

Mrs.

What benefits motivated you to join AASP of Massachusetts?

Ms.

__________________________________________________________

Business Representative Name: ______________________________

__________________________________________________________

Business Name ____________________________________________

__________________________________________________________

Street Address ________________________________________________________________________________________________________ Street

City

State

Zip

Mailing Address ______________________________________________________________________________________________________ Street

Phone Number ( E-mail Address

City

)____________________________________ Fax Number (

State

Zip

) __________________________________________

________________________________________ Web Site Address ____________________________________________

Enrolled By (Name and Address) ________________________________________________________________________________________ MEMBERSHIP TYPE REPAIRER MEMBER (check one) Collision Repair Shop Mechanical Repair Shop Both, Collision & Mechanical Repair Shops Other Repair Shop

PERSONAL INFORMATION: Name ____________________________________________________ Nickname ________________________________________________ ANNUAL MEMBERSHIP DUES (The AASP membership year is from January 1 to December 31, 2016)

$40/month SUPPLIER/ASSOCIATE MEMBER (check one) Auto Paint/Crash Parts/Auto Parts/Wholesaler Equipment/Tool Supplier Manufacturer/Sales Agent Services (Computers, Software, Vehicle Rental, Other)

$115/quarter

$425/year - bESt VALUE!

Monthly & Quarterly Dues are Automatic Credit Card Transactions ONLY*

NEW! Political Action Committee (PAC) Donation ...............$_____ Check or Cash

Credit Card:

Visa

MasterCard

Amex

Card Number: __________________________________________ LIST OTHER SPECIALTIES ______________________________________ __________________________________________________________

CID Number: ____________

(3#s on back for Visa, 4 on front for AMEX)

Expiration Date: ________________________________________ Name on Card: __________________________________________

Just like good tools and equipment, membership in AASP of Massachusetts is a valuable investment. AASP of Massachusetts works for you through such outstanding programs as: (1) management and technical training; (2) discount uniform rental; and (3) a wide variety of other business services.

Put AASP of Massachusetts to work for you today.

COMPLETE THE MEMBERSHIP APPLICATION AND RETURN IT WITH PAYMENT TO AASP OF MASSACHUSETTS.

Billing Address of Credit Card: ____________________________ ________________________________________________________ Signature: ______________________________________________ Date: __________________________________________________ *Additional authorization form needed. Please contact AASP/MA Office.

FOR OFFICE USE ONLy Check Number ______________________________Check Date ________________________Check Amount ______________________________ Date Joined ______________________________Member Number ______________________Next bill Date ______________________________

12 Post Office Square, 6th Floor • boston, MA 02109 Phone: (617) 574-0741 | Fax: (617) 695-0173|jzywien@aaspma.org As required by the U.S. Tax Code, AASP of Massachusetts, Inc. informs its members that 75% of the dues paid to the association are tax deductible. The remaining 25% is allocated to legislative activities and is not tax deductible.

New England Automotive Report

October 2015

53

54 October 2015

New England Automotive Report

New England Automotive Report

October 2015

55

56 October 2015

New England Automotive Report

New England Automotive Report

October 2015

57

PRESIDENT’S MESSAGE continued from pg. 8 which is a regulation that was adopted as a result of the hard work of collision industry leaders and insurers that mutually agreed this would allow the repair process to stay fluid and shorten rental times. Please take advantage of this regulation, as it will ease supplemental pain. In closing, we certainly have the attention and focus of a new, proactive ADALB and the DOI. We are involved in these

N

processes that will ultimately serve our customers and their families. At the end of the day, I’d consider that a huge win.

E

W

E

N

G

L

A

N

D

AUT M TIVE AD INDEX

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

AP Media ........................................................29 Audi Group ....................................................36 Audi Shrewsbury ..........................................47 Axalta Coating Systems ..................................4 Bald Hill Chrysler Jeep Dodge Ram..............8 Balise Wholesale Parts Express ......................6 Baystate Chrysler/Jeep/Dodge ..................29 Bernardi Group ........................................30-31 Best Chevrolet/Best CDJR..........................IFC BMW Group ..............................................24-25 BMW/Mini of Warwick ................................18 Clay Subaru ......................................................9 Colonial Auto Group ....................................19 Empire Auto Parts..........................................35 Enterprise ........................................................35 First Chrysler-Dodge-Jeep-Ram ..................10 First Ford ........................................................10 First Hyundai..................................................10 Ford Group ....................................................32 Future Cure ....................................................46 G&M New England LLC ..............................11 Honda Group..................................................54 Hyundai Group ..............................................57 Imperial Ford ..................................................33 Infiniti of Norwood........................................33 Ira Group....................................................12-13 Kelly Automotive Group............................IBC Kia Group........................................................41 Linder’s, Inc. ..................................................58 Long Automotive Group ..........................OBC Mazda Group..................................................48 Mercedes-Benz of Shrewsbury ....................47 Mopar Group..................................................40 Nissan Group..................................................43 PPG ....................................................................3 Robertsons GMC Truck ................................27 Sarat Ford Lincoln..........................................11 Sentry Group ..................................................42 Steck ..................................................................9 Subaru Group............................................50-51 Tasca Group ....................................................37 Toyota Group..................................................55 Village Auto Group........................................49 VW Group ......................................................56 Wagner BMW of Shrewsbury ......................47 Wagner Kia of Shrewsbury ..........................47 Wellesley Toyota/Scion ................................21

58 October 2015

New England Automotive Report