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Vol. 38 / Issue 2 / February 2020
California DMV OKs Light-Duty Autonomous Delivery Vehicles
Allstate Wins Victory in Whistleblower Suit Against ‘Sham’ Law Firm
by Eleanor Lamb, Transport Topics
by Jim Sams, Claims Journal
California has authorized the testing and commercial use of light-duty autonomous delivery vehicles on public roads.The California Department of Motor Vehicles announced Dec. 17 that, with an approved permit from the department, companies can operate autonomous delivery vehicles weighing fewer than 10,001 pounds. Qualifying vehicles include cargo vans, midsize pickup trucks and autonomous passenger cars. Companies can test their autonomous delivery service with or without a safety driver
in the vehicle, depending on the permit. To charge a delivery fee, companies need to apply for a deployment or commercial use permit with the DMV. “The adoption of these regulations means Californians soon could receive deliveries from an autonomous vehicle, provided the company fulfills the requirements,” DMV Director Steve Gordon said. “As always, public safety is our primary focus.” According to DMV’s announcement, autonomous delivery vehicles will be required to comply with the same application requirements that See California DMV, Page 19
Prevalence of Vehicle Scanning – and Insurers’ Willingness to Pay for it – Have Risen The industry’s adoption of vehicle scanning as an indispensable part of the repair process can be seen in the results of the “Who Pays for What” surveys conducted for several years by Collision Advice and CRASH Network. In the survey conducted this past fall, 11% of shops said they might skip a post-repair scan because no dash lights are lit – not a legitimate reason – but in the same survey in 2016, nearly half of all shops (44%) said that was a reason they might skip the scan. Likewise, three years ago, about 1 in 5 shops said they did-
Allstate Insurance Co. won an appellate court victory in a whistleblower lawsuit against a Los Angeles attorney whom it accuses of operating a “sham law practice” that conspired with “sham health care providers” to defraud auto insurers.
n’t perform scans because they don’t have the tools necessary to perform the scans. In the latest survey, 2% used that as an excuse. Payment practices have evolved as well. Back in 2016, a “Who Pays” survey found more than 30% of all shops said that one of the reasons they didn’t perform a post-repair vehicle scan was that insurers didn’t pay them for the procedure. Three years later, just 12% of shops say a lack of insurer payment is one of the reasons they might not perform a vehicle scan. More than 97% of shops See Vehicle Scanning, Page 28
The Second District Court of Appeal on Dec. 23 affirmed a trial court order denying a motion by attorney Kelly Casado to dismiss the
lawsuit because his actions, in sending demand letters to insurers, constituted “protected prelitigation activity.” Allstate’s attorney, Thomas E. Fraysse, said the decision is important because it expands upon a precedent set in other cases that have limited the circumstances under which lawyers can escape civil action by filing anti-SLAPP suits. The term is derived from the acronym for strategic litigation against public participation. A California law, known as the anti-SLAPP statute, provides a process for defendants to dismiss litigation that would chill the exercise of constitutional rights. “The presentation of an insurance claim is not a constitutionally protected activity,” said Fraysse, See Allstate Wins Victory, Page 16
What We Know About US Jobs and Other Details of Fiat Chrysler, PSA Merger by Breana Noble, The Detroit News
Fiat Chrysler Automobiles NV and French automaker Groupe PSA said their boards unanimously supported a binding agreement to merge and create the world’s fourth-largest automaker. The deal is one step further than Fiat Chrysler got earlier this year with Renault SA, another French carmaker. The combination of PSA and FCA is expected to provide cost savings, create a hedge against cyclical downturns and have the scale to invest and compete in an electric and self-driving future. Although the companies are calling the deal a 50-50 merger, PSA would hold a board majority and appoint six of the 11 board members. That includes PSA CEO Carlos Tavares, who is expected to lead the
combined company. Here is what else to know about the deal: What comes next? With the binding agreement signed, the automakers can pursue obtaining antitrust and regulatory approval from the companies in which it operates. They also must receive approval from their shareholders. The process is expected to take 12 to 15 months. “We don’t feel we have any concerns with antitrust” laws, Tavares said. “We’ve reviewed this topic and are very comfortable we have no problem on antitrust” regulations. What is the name of the new company? The name of the new company has not yet been announced. Information See US Jobs, Page 28
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