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Aftermarket Parts Sellers Hear from Congressional Candidate With Ties To The Industry by John Yoswick
PartsTrader proposed state limits on use of non-OEM parts, and challenging the automakers’ patent designs on crash parts were all being discussed when non-OEM parts manufacturers and distributors met recently in Austin, Texas. The Automotive Body Parts Association (ABPA) allowed only members in the room during discussion at its convention of the association’s pending lawsuit challenging the validity of six of Ford’s design patents on collision repair parts. But proposed
federal legislation that would reduce how long automakers can use design patents to prevent other companies from producing replacement crash parts was among the topics discussed at the event by Louisiana tax Cassie Felder lawyer Cassie Felder, who is running for Congress. Felder, a Republican who believes in tax reform and repealing the Affordable Care Act, told attenSee Aftermarket Parts Sellers, Page 12
Philadelphia Shop Accused of Staging Car Accidents as ‘Fictitious Deer Crashes’, Vandalizing Own Repairs
jury. Also charged were his wife, Vicki, 59, and their son Ron Jr., 37, who since 2000 has been the legal owner of his father’s American Collision & Auto Center at 1930 S. 20th St. According to District Attorney Seth Williams, Galati encouraged customers to file insurance claims saying they struck a deer instead of a car so insurance companies would consider them “no fault” accidents and pay the claims without raising the customers’ premiums. Galati favored creating single-vehicle accidents because insurance companies would consider them “noSee Staged Deer Crashes, Page 9
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P.O. BOX 1516, CARLSBAD, CA 92018
Ronald Galati Sr. is one of 41 people in Philadelphia indicted by a grand jury in an elaborate insurance fraud scheme that used deer carcasses to stage auto accidents, according to reports at Philly.com. Galati is accused of running the $5 million scam out of his auto body shop in Philadelphia where he stored deer carcasses, blood, and fur in the back of his shop to use as props to stage the accidents. Galati was in the business, according to a grand jury, of “fictitious deer accidents.” Galati, 63, was one of 41 people charged in the fraud after a 16-month investigation by a Philadelphia grand
VOL. 4 ISSUE 4 JULY 2014
Massachusetts ADALB Issues Positive Advisory Ruling on Use of Digital Images in Appraisals Autobody News previously reported on the controversial use of digital images in appraisals in Connecticut (ABAC Legal Counselor Objects to Use of Camera Phone Photos for Estimates in June 2014 issue.) The concerns have also caught the attention of Massachusetts’ Commonwealth’s Auto Damage Appraiser Licensing Board (ADALB) which made an advisory ruling on May 20th stating that using “quality video or digital images” to prepare an appraisal satisfies its regulations. The Massachusetts ADALB approved Advisory Ruling 2014-01 by majority vote at a board meeting. It seeks to clarify the use video or digital imaging technology to settle claims. The adopted ruling states: The Auto Damage Appraiser Licensing
Board has passed a motion agreeing that an appraisal conducted by a licensed appraiser via review of quality video or digital images with documentation meets the requirements of 212 CMR 2.04(1)(d) “The appraiser shall personally inspect the damaged motor vehicle and shall rely primarily on that personal inspection in making that appraisal....” “This Advisory Ruling shall be effective upon posting on the Auto Damage Appraiser Licensing Boardpublic website. Failure to comply with this ruling could result in fines and penalties as provided for by law. The practice comes about when insurance companies allow their customers to file claims via a smart phone application. In March, for ex-
By Rhode Island standards, this year’s entry in the automobile insurers versus repair shops category is a minimalist one. Nonetheless, a series of bills in ongoing tug-of-war between the auto body and insurance industries in Rhode Island are ongoing and were heard by the Rhode Island Senate Committee on Judiciary June 5. The bills are co-sponsored by North Providence Sen. Dominick Ruggerio, majority leader from District 4. Corresponding bills from North Providence Rep. Arthur Corvese have also been referred to committee in the House. The following are some of the bills up for consideration: ● S2833 prohibits insurance companies from mandating use of used or remanufactured airbags or suspension parts. It would prohibit insurance companies from requiring the use of used or remanufactured airbags and/or suspension parts when vehicle repairs
are made by an auto body shop. ● S2834 establishes a two-tiered licensing system for body shops. It creates two distinct license classifications and labor rate surveys for auto body repair shop facilities, basically meaning different pay for different shops. ● S2835 extends regulations on aftermarket auto body replacement parts to any automobile replacement part. It amends the definition of the term “aftermarket part” to refer to all motor vehicle replacement parts. ● Another would eliminate the process that allows filings by casualty insurers seeking rate increases or decreases of not more than 5 percent to become effective when filed, essentially taking away the ability of insurers to increase rates without a hearing, according to Jina Petrarca-Karampetsos, spokeswoman for the Auto Body Association of Rhode Island (ABARI) and daughter of Providence
See Photos in Appraisals, Page 14
Rhode Island Bills Under Consideration Affect Airbags, Two-tiered Body Shops, Aftermarket Parts
See RI Body Shop Bills, Page 18
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