Legal Cases

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CONNECTICUT

Cassella v. Lenches, New Haven, CT, Superior Court, Case #CV 08-5020898 S (Dec. 9, 2010)

Third party (not at-fault driver) entitled to cost to repaint entire vehicle, not merely damaged panels, and to recover for inherent diminished value accruing to vehicle caused by negligence of defendant.

NEW YORK 

Nick's Garage, Inc. d/b/a/ Nick Orso's Body Shop & Service Center v. Nationwide Insurance, Syracuse, NY Syracuse City Court, Case # (Index #) 2008-00009 CV (July 11, 2011)

Collision repair facility had standing to sue insuer via Assignments of Proceeds/Claim to recover against insureds' carrier for full cost of vehicles' repair.

Nick's Garage, Inc. d/b/a/ Nick Orso's Body Shop & Service Center v. Adirondack Insurance Exchange, Onondaga Cty, NY, Onondaga Cty. Court, Case # (Index #) 2008-9681 (June 2, 2010)   

Collision repair facility's use of an Assignment of Proceeds/Claim to recover against an insurer for underpayment of necessary costs to properly and safely repair vehicle.

 

Brief of Amici Curiae The Automotive Education & Policy Institute and Vehicle Information Services, Inc. (Sept. 28, 2009)

Reply Brief of Amici Curiae The Automotive Education & Policy Institute and Vehicle Information Services, Inc.
                (March 12, 2010)

Mass v. Melymont, 1 Misc. 3d 906A, 781 N.Y.S. 2d 625 (Nassau Cty., NY 2003)

Plaintiff (third party claimant) entitled to recover full amount charged by collision repair facility rather than lesser amount identified by USAA as appropriate amount to repair vehicle.  Court found collision repairer facility's charges of $50/body, $50/refinish, $55/mechanical, and $55/frame to be reasonable.  USAA's proposed reimbursement rates of $38 to $42 not acceptable.

OHIO

Henn v. Stoneberger, Mason Municipal Court, Warren Cty., OH, Case #83-CVE-86 (Oct. 13, 1983)

                        Not at-fault driver entitled to recover "fair and reasonable value of repairs" from at-fault driver, and $28/labor rate
was fair and reasonable.  Plaintiff's obligation to minimize damages did not "necessitate use of lowest possible
labor rate in community".  Therefore, Plaintiff not limited to $16/labor rate urged by defendant.

Hermann v. Permanent General Ins. Co., Coshocton Cty. Municipal Court, Coshocton, OH, Case #CVE1100229 (Sep. 16, 2011)

Insurer directly liable to consumer via Ohio's aftermarket parts statute for preparing estimate including use of imitation parts, but failing to obtain consumer's express, written authorization for use of those parts.  Insurers' exemption to consumer protection law not applicable when insurer engaged in activity outside "core business of insurance."  Act of issuing repair estimate is "business of auto repair shops not insurance companies."  Insurer found liable for treble damages and payment of attorney fees.

Valley Paint & Body, Inc. v Curtsinger, Clermont Cty. Municipal Court, Clermont Cty., OH, Case #2009 CV H 00541 (Jun. 6, 2009)

Collision repair facility sued at-fault driver for damages to its vehicle. $48/labor rate was appropriate rather than $40/rate urged by defendant, and refinishing front fender, covering car for refinish, cavity preservation, tint color/spray test panel, clean up after repairs, shop materials, paint materials, and finish, sand and buff were industry-standard charges.  Plaintiff also entitled to profit on repair despite being in collision repair business, as employees and resources not available to perform repairs at same time for paying customers. (Progressive was insurer for at-fault driver.)

  

VERMONT

Nationwide Mutual Insurance Co. v. Parker's Classic Auto Works, Rutland, VT, Superior Court, Case #s 649-8-10,
650-8-10, 651-8-10 (January 12, 2011)

Collision repair facility's use of an Assignment of Proceeds/Claim to recover against an insurer for underpayment of necessary costs to properly and safely repair vehicle.

 
CASE, ARBITRATION AND PROCEEDING TRANSCRIPTS

CALIFORNIA

Wilkins v. Delross and Mason v. Ellis, Sonoma Cty, CA, Superior Court, Case #s SMC-09-174813 & SMC-09-175738
(Oct. 2009)

Rights of third parties (not at-fault drivers recovering against persons who caused accident) to recover reasonable cost of repair rather than insurer-determined lesser amount.  "Reasonableness" connotes a range of charges and rates, not one set rate.  (State Farm is the insurer involved.) 

Day One Transcript:  October 28, 2009

Day Two Transcript:  October 29, 2009 (includes Judge Bertoli's decision, ruling from the bench)

CONNECTICUT


All Pro Collision Repair & Sales, LLC v Erhardt, Hartford, CT, Superior Court, Case # SCC-322032 (Feb. 8, 2011)

Independent collision repair facility accepted Assignment of Claim from third party (not at-fault driver) for additional charges refused to be paid by at-fault driver's insurer for repairs to vehicle.  Charges for repair work at $68.95/body labor and paint labor, $90/ mechanical labor, and $79.55/frame labor were reasonable and necessary in marketplace and Allstate's across-the-board rate of $48 was not.

PENNSYLVANIA

Nationwide General Ins. Co. v. Crawford's Auto Center, Inc., Chester Cty., PA, Court of Common Pleas,
Case #10-14174 (Aug. 15, 2011)

                    Insurer sued collision repair facility claiming unjust enrichment in charges relating to a total loss.  Repairer's
total charges for storage, towing, and total repair process fee with sales tax was $6,299.48.  Insurer
paid invoice to secure vehicle, then sued alleging repairer's total repair process fee of $3,358.00 was
unreasonable and "fair and reasonable charge" for work performed was only $545.69.  Insurer sought
recovery of $2,812.31.  Arbitration panel found in favor of collision repair facility.

Desiderio v. State Farm Mutual Automobile Ins. Co., Philadelphia Municipal Court, Philadelphia, PA, Case #SC-09-09-25-6001 (Jan. 8, 2010)

Insured sued insurer for breach of contract and bad faith for denying her vehicle damage claim, accusing her of
committing insurance fraud, and reporting her to the state Attorney General.  Court found in favor of insured that
State Farm had wrongly denied her claim and awarded $5,137.93 for property loss, $2,500 in additional damages,
and $59.50  in court costs.  (Includes Judge Gilbert's ruling from the bench.)



SOUTH CAROLINA

Southern Glass & Plastic Co., Inc. v. USAA Casualty Insurance Co., et al, Richland Cty, SC, Magistrate's Court,  Case # 2009-CV-40-1101259  (Sept. 2009)

Glass repair company's use of an Assignment of Proceeds/Claim to recover against an insurer for underpayment of necessary costs to properly and safely repair/replace vehicle's glass. Glass repairer permitted to recover reasonable cost of repair rather than insurer-determined lesser amount.

         Day One Transcript:  September 16, 2009

Day Two Transcript:  September 17, 2009 (includes Judge Womble's decision, ruling from the bench)


WASHINGTON

Stroud's Auto Rebuild, Inc. v. Safeco Insurance Co., Pierce Cty., WA, Superior Court, Case # 09-2-07665-6
(Dec. 6, 2010)

Independent collision repair facility's right to recover lost profit against insurer who persuaded insured to patronize insurer "preferred repair facility" on claim of tortious interference with contract/business expectancy.

Stroud's Auto Rebuild, Inc. Arbitration Brief  (Nov. 16, 2010)

Safeco Insurance Co. Arbitration Brief  (Nov. 17, 2010)

 Decker v. Safeco Insurance Co., Appraisal Clause Arbitration, Seattle, WA, Reference # 1160017034 (Dec. 11, 2007)

Insured invoked appraisal clause under insurance policy to address insurer's refusal to pay entire cost of repairs by BMW-approved collision repair facility amounting to $12,352.15.  Insurer argued $46/body labor was "prevailing competitive price" in Seattle, WA marketplace and submitted its Prevailing Rate Survey" for "Independent Repair Facilities" in support.  Decker submitted a detailed analysis demonstrating that Safeco's survey did not comply with proper statistical and survey methods, contained inaccurate information, and identied results of separate 2007 Benchmarking Survey of posted rates for independent repair facilities to be $53.18/body labor.  Umpire rejected insurer's rate survey stating it was flawed, found repairer's bill proper, and awarded damages to insured including payment of attorney fees.