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OH Attorney General Seeks Reimbursement from Used Car Dealership for Failing to Deliver Vehicle Titles On July 24, a lawsuit was filed by Ohio Attorney General Mike DeWine against a Middletown used car dealership accused of failing to deliver titles to vehicles it sold to consumers. The lawsuit accuses Dixie Cars Concepts and its owner Ali El Azzouzi of violating state law. It also seeks reimbursement for consumers and a state fund that helps consumers resolve title problems. Dixie Cars Concepts last operated at 2701 Dixie Highway in Hamilton. It currently is closed. Since 2013, the Ohio Attorney General’s Consumer Protection Section has received 20 complaints against the dealership. Most in-
volved title problems. “Consumers complained to us saying they bought vehicles from this dealership but never received a valid title,” said DeWine. “We were able to help many of these consumers, but now we are seeking reimbursement from the dealership and a permanent end to any violations of state law.” The Attorney General’s Office paid $40,644 from the Title Defect Rescission Fund, which helps consumers who have title problems after buying vehicles from a dealership. Contact Ohio Attorney General’s Office at 800-282-0515 or www.OhioAttorneyGeneral.gov.
Michigan Bill Would Prohibit Insurer-Mandated Parts Procurement from Specific Suppliers or Processes On July 1, Michigan State Sen. Joe Hune (R-22), chairman of the Senate Insurance Committee, introduced Senate Bill 430, a bill that amends the insurance code to prohibit insurers from requiring automotive repairers to use a specific vendor or process to procure parts and other materials. If enacted, this legislation would effectively end all such requirements in current directrepair program agreements for Michigan shops. This bill was introduced in response to the Automotive Service Association’s (ASA) advocacy efforts in the Michigan legislature. Ray Fisher, president of ASA-Michigan, said,
“This bill would continue to allow repairers to choose their parts procurement systems and their parts vendors as they currently do with a majority of their customers’ insurance carriers. In turn, this will continue to increase efficiency for the automotive repair process by supporting local parts vendors and ensuring quality parts for consumers.” ASA President Dan Risley echoed Fisher’s remarks. “ASA has communicated our concerns with mandatory parts procurement to the industry,” said Risley. “We believe that direct repair program mandates to utilize specific See Michigan Bill, Page 6
VOL. 4 ISSUE 11 AUGUST 2015
CT Supreme Court Overturns 2009 $35M Judgment Against The Hartford, Cites Unfair Trade Practices The CT state Supreme Court sided with The Hartford in a decision announced July 13 on a 2003 case in which auto body repair shops in Connecticut challenged the insurer’s practice of steering work to favored shops—overturning $35 million in previously-awarded damages, reported the Hartford Courant. The Hartford’s 2009 appeal of Artie’s Auto Body, Inc. et al v. The Hartford Fire Insurance Company successfully overturned the class-action suit initiated by a group of over 1,500 Connecticut collision shops. In the 18-page decision, the Supreme Court reversed the lower court’s ruling that Hartford Fire Insurance Co., part of The Hartford Financial Services Group, violated state
unfair trade practices law by steering customers who had been in a crash to certain preferred auto body shops, however the Court ultimately supported the insurer’s claim that the failure of its appraisers to remain “fair and impartial” violated a portion of the Connecticut Unfair Trade Practices Act (CUTPA) saying “[the body shops] are deemed to be capable of representing their own interests, and certainly are under no obligation to accept insurance related work that is not sufficiently remunerative.” Following a trial in 2009, the Superior Court jury found in favor of the plaintiffs and awarded $14,765,556 in compensatory damages. Later, the trial court awarded plaintiffs $20,000,000 See CT Supreme Court, Page 14
NACE Moves From Detroit to Anaheim, August 2016
First Major Collision Trade Show in California in Well Over a Decade by Autobody News Staff
During the NACE-CARS expo in Detroit July 21–25, ASA executives confirmed that the next NACE expo will occur next August in Anaheim, CA. The announcement was greeted with relief by many in attendance. Despite a wellorganized expo, very well-attended MSO Symposium (700 attendees), a major connected car technology and telematics forum, and demonstrationrich expo floor complete with active spray booths and occasionally running vehicles, the show failed to attract many more than the approximately 6,200 show attendees of last year’s NACECARS. This despite the show adding
Donny Seyfer (l), ASA Chair, and Dan Risley, ASA President, beside hockey goalie helmet painted by air-brush artist Ray Bishop. The helmet was auctioned to help to raise money for breast cancer fundraising and will be displayed at ASA headquarters.
20% more floor space and exhibitors. The 2015 show required 54,500 See NACE Moves West, Page 40
Additional NACE/CARS 2015 Coverage in this Issue...
NACE 2015 Entertains, Informs and Wows (photo montage) p. 24 ● MSO Symposium During NACE Include Claims Management Models, Future of DRPs and Financing Options p. 54 ● Jon Kosmoski from Valspar’s House of Kolor & TV Reality Star KC Mathieu Demo Kandy Painting p. 52 ● Behind-the-scenes Look at MI Factory Where Ford F-150 Is Manufactured p. 39 ● Chip Foose Demonstrates 3M’s New Accuspray Gun p. 25 ● More Coming in September
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