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Tag Archives: Collision repair shops
A bill in the New York state legislature outlines guidelines for the use of original equipment materials and procedures (OEM) in collision repair shops. The bill, also known as A8050, was introduced in the Assembly and was sponsored by Assemblyman … Continue reading
Collision repair shops from throughout the country have objected to a Florida judge’s recommendation that many of the cases alleging antitrust violations by insurers be dismissed without prejudice. Collision repair shops from 12 Federal District Courts had alleged “steering and price fixing” by dozens of insurers. The cases are consolidated before a Florida U.S. District Court judge.
“Aftermarket Windshield Glass Poses Safety Risk,” Florida Collision Repair Shops Allege in Amended Complaint
A group of Florida collision repair shops have filed a third-amended complaint against State Farm and dozens of other insurers, alleging the insurers use their direct repair programs to illegally control and depress rates and they say if the shops don’t comply, customers are steered away. “With occasional exceptions, defendant insurers write estimates requiring use of aftermarket [such as aftermarket replacement windshields] or salvage parts. Aftermarket and salvage parts are, ostensibly, less expensive than OEM parts and, at least according to defendant insurers, of equal quality to OEM parts. This is simply not true,” attorneys for the collision repair shops allege in the complaint.
A U.S. District judge in Florida has dismissed much of the antitrust lawsuit filed by group of Florida collision repair shops against State Farm and dozens of other insurers without prejudice, meaning attorneys for the repair shops can file an amended complaint. The shops allege the insurers use their direct repair programs to “illegally control and depress” repair rates and if the shops don’t comply, customers are steered away. The judge says more “evidence” is needed to support the allegations.
Repair Shops Ask the Judicial Panel for Multidistrict Litigation to Consolidate Lawsuits Against Insurers
Collision repair shops in at least five states have now filed lawsuits against dozens of insurers, alleging the insurers use their direct repair programs to “illegally control and depress” repair rates and if the shops don’t comply, customers are steered away. They have asked the Judicial Panel on Multidistrict Litigation to approve their petition to consolidate the cases into one court.