May 2018 Southwest Edition

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36 YEARS

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AUTOBODYNEWS.COM

Vol. 36 / Issue 5 / May 2018

State Farm Responds to Claims of Influencing Non-OEM Auto Repair

Todd Tracy’s 10 Ways to Avoid a $42 Million Verdict

by Katherine Coig, glassBYTEs.com

Attorney Todd Tracy’s recent lawsuit against a dealership body shop marks the start of a profound shift for collision repairers. Below is his list of 10 Ways to Avoid a $42 Million Verdict, co-authored by Gene Bilobram, who wrote “The Pre and Post Scan Revolution” featured in Autobody News last spring.

A jury recently found Texas-based John Eagle Collision Center liable for injuries sustained by Matthew and Marcia Seebachan following a 2013 crash because a repair was not done according to OEM specifications, according to the verdict. Now, State Farm is in the spotlight for its alleged role in influencing that repair. The couple is suing for negligence and breach of warranty. The lawsuit stems from a non-OEM roof repair, which used an adhesive instead of being welded as Honda’s

specifications outlined. According to John Eagle’s director Boyce Willis, State Farm wouldn’t pay the shop unless the repair was done according to its specifications as opposed to Honda’s. “No insurance company should ever dictate to a collision repair center or body shop how to repair a vehicle. To do so is extremely negligent, and shows a wanton disregard for human life and the safety of others,” said Todd Tracy, attorney for the plaintiffs. “John Eagle did not repair the subject 2010 Honda Fit to Honda’s body repair specSee State Farm Responds, Page 53

MSO Drops Use of PartsTrader, Remains on State Farm’s ‘Select Service’ Program by John Yoswick

State Farm is allowing Caliber Collision centers participating in the “Select Service” program to remain on the program without using PartsTrader for State Farm claims. Caliber’s corporate office declined to comment on the change, but sources have told CRASH Network that Caliber CEO Steve Grimshaw announced at a company gathering in February that Caliber was curtailing its use of PartsTrader. “We’re now using PartsTrader only for The Hartford,” a source at a

Caliber location in North Carolina confirmed. “I’m not sure if it’s a pilot for [State Farm] dropping PartsTrader, or what.” It is unclear whether the change was initiated by State Farm or Caliber. One source within Caliber said that he expects the company’s use of PartsTrader for The Hartford to end in the near future as well. An estimator at a Caliber location in Georgia said he was happy with the change. “You still have to do your due diligence in searching for alternative parts [for State Farm claims],” he See ‘Select Service’, Page 18

by Gene Bilobram and Todd Tracy

1) Always Follow OEM Repair Specifications Refer to vehicle-specific (year, make, model) and repair-specific OEM repair manual information on every repair. Follow up by seeking any OEM position statement, Technical Service Bulletin (TSB), recall or general procedure applicable to the OEM and its vehicles.

2) Always Follow I-CAR OEM repair procedures do not always exist in a particular vehicle repair situation. In those cases, published I-CAR best practices should be sought out and followed to assure an industry best practices repair. After OEM procedures, always follow I-CAR. 3) Remember Who Your Customer Is The vehicle owner and future owners will live with the consequences of the repairs you make. Keep the customer informed about the high standard of repairs the shop is striving to provide with any insurer resistance to same. It’s the shop’s duty to involve the customer rather than make unilateral decisions which can compromise repairs. The shop’s overriding duty is to provide the safest repair See 10 Ways to Avoid, Page 12

Wrecked Vehicle Stolen from Dealership Body Shop in Houston by Maria Salazar, FOX 26 News

The Houston Police Department needs help identifying a man captured on surveillance video leaving a car dealership’s lot with a customer’s wrecked Jeep Compass. The incident happened on March 24 shortly before 4 p.m. at the Mac Haik Dodge Chrysler Jeep Ram dealership on the North Freeway. The dealership’s sales department was still open, but the body shop was closed. Jeffrey Goss said the stolen sport utility vehicle belonged to him. He thought things were looking up on March 26 when he got a text from the dealership saying his car would be ready for pick-up at the end of the day. An hour later, he said he got a call from the dealership to inform him his car had been stolen.

“This is a very random incident,” said Shaun Jones, body shop manager with Mac Haik Dodge Chrysler Jeep Ram. “We do everything we can to keep vehicles safe. This could have happened to anybody.” In the surveillance video, a man is seen crawling under a garage door. He then opens another garage door while driving away in a Jeep Compass with front end damage. He steps out of the car to close the garage door and then gets back in the SUV and drives away in it. “In watching him in the video, it looks like he just didn’t have a care in the world,” added Jones. “I mean, didn’t care if anybody saw him. He had a mission and that’s what he was there to do.” Jones said he has worked at the See Vehicle Stolen, Page 12

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