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Florida Repairers Re-File Multi-Lawsuit Against 39 Insurers, Previously Filed Complaint Dismissed Over several months, auto body repair shops in five states (Florida, Mississippi, Indiana, Utah and Tennessee) have filed antitrust actions against a multitude of auto insurers, alleging that the insurers’ direct repair programs violate the antitrust laws. In each case, the plaintiffs alleged that the manner in which the insurers set reimbursement rates for covered repairs artificially depressed the compensation plaintiffs received for their services, and that the insurers also steered insureds away from plaintiffs’ businesses to those shops that are participants in the insurers’ direct repair programs.
The attorneys representing dozens of Florida Collision Repairers have now re-filed an amended complaint seeking their day in court. They did so following a judge’s comments when the judge dismissed the previous complaint (A&E Auto Body, Inc., et al. v. 21st Century Centennial Insurance Company, et al.) finding that the plaintiffs’ complaint lacked the necessary factual detail required for the plaintiffs’ claims. The suit, originally filed February 24 in the U.S. District Court for the Middle District of Florida, Or-
by Chasidy Rae Sisk
attend, and beginning the planning and organizing process for the Southern Automotive Repair Conference 2015 in Biloxi, MS with the repair associations in Georgia, Florida, Louisiana, Mississippi, Tennessee, and we hope, the new Texas association.” Members of ALARISE were Steve Plier, heavily involved in ALARISE President April’s Skills USA State Competition, and they are actively seeking additional ways to play a role in introducing the opportunities available in the collision repair indus-
See FL Case Refiled, Page 9
Steve Plier Provides an Update on ALARISE The Alabama Automotive Repair Industry Society of Excellence (ALARISE) is an active association throughout the industry. Steve Plier, President of ALARISE, has been very busy traveling the country to aid recently formed associations and spread the word about some of the association’s projects, but he took time from his hectic schedule to provide an update on what is going on with ALARISE this summer. “ALARISE is fighting the battle of most repair groups,” Plier explains, “trying to increase membership, working and planning educational training classes for repairers in Alabama and surrounding states if anyone would like to
VOL. 5 ISSUE 6 AUGUST 2014
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See ALARISE Update, Page 9
GA Court Orders State Farm to Pay Over $40K for Breach of Contract in Short Pay Case A Georgia State Court has ordered State Farm Insurance Co. to pay over $40,500 after it failed to provide for its client’s collision repairs. Japonica Roberts brought the suit against State Farm after the insurance company failed to pay for about $4,000 in repairs that Hernandez Collision Center in Savannah, GA, had completed. The judge, H. Gregory Fowler, issued the ruling last month after the case was heard by a jury. Hernandez Collision was a witness in the case. “It is refreshing to see the results in this case and know that a jury of our peers awarded Mrs. Roberts for the hardship caused by her insurer,” said April Hernandez, AAM at Her-
nandez Collision. “While Hernandez Collision Center gladly works with all insurers, our responsibility is to our customers to ensure all damages to their vehicle is repaired properly and thoroughly. We feel it is also our professional responsibility and moral obligation to help customers like Mrs. Roberts when they are treated unfairly. We congratulate Mrs. Roberts on her courage and conviction and are thankful that we could help her in this endeavor.” The final judgment awarded to Roberts included $5,508 for breach of contract, $5,000 as a bad faith penalty and $30,000 for attorney fees. In all, State Farm will pay $40,508.
An Interview with Georgia Attorney Gene Brooks on Short Pays and Georgia Consumer Law
$4,000 in repair costs due, paying only about 60% of the repair costs.
by Chasidy Rae Sisk
Short pay lawsuits are an increasingly prevalent trend in the collision repair industry where insurance regulations permit them. After learning of a recent $40,508 victory against State Farm by a customer of GA’s Hernandez Collision Center, I decided to interview Gene Brooks, the attorney who won the case, to get a better understanding of the issues. See related article this page. How often do you work on short pay lawsuits?
I have been working on these cases for a couple of years now. We are set to try our fifth case next week and have others set on trial calendars for the rest of this year and going into next year. Why was this lawsuit necessary?
State Farm rejected Ms. Roberts’ presuit demand for settlement of her claim. State Farm had refused to pay over
The National Board of Trial Advocacy (NBTA) has recognized Savannah attorney Eugene C. Brooks, IV, for 20 years of certification in civil trial advocacy
Did the Hernandez Collision Center case affect your understanding of consumer rights?
The issue of consumer rights is a matter of Georgia law, so that was learned from Georgia law and insurance regulations. Hernandez Collision Center has educated me on the responsibilities of the repair shops to return a damaged car back to its pre-accident condition and on the process of repairing a car. Learning the particularities of vehicle repair has been a challenge. What role did Hernandez Collision Center play in Japonica Roberts’ case See Gene Brooks, Page 12
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