In a ruling that bucks the national norm, The New Mexico Supreme Court ruled last month that consumers could sue insurance companies for failure to negotiate reasonably once liability has been established in an automobile accident. It's called "third party bad faith" and it gives a motorist the right to sue the other party's insurance company when that other party is at fault and his insurer makes an unreasonable or "low ball" offer to settle the case.
In the marathon of Arizona politics, the baton has been passed from the Fairness for Automotive Consumers (FAC) legislative committee members - David Fait, Brad Beebe, Randy Maddox, and Cindy Beckes - to State Representative Gary Pierce (R), and lobbyists Barry Aarons and Art Chapa.
California Department of Consumer Affairs (DCA) Director Charlene Zettel has presented her department's report on the Bureau of Automotive Repair (BAR) to the 2004 Sunset Review Committee with three recommendations for improving the BAR. The recommendations include consideration of a statutory definition of "fraud," a term that has been hotly contested in the collision repair industry over the past year.
Two of the remaining four defendants in the national class action lawsuit that alleges price- fixing in the automotive refinish industry have settled for a total of $48 million while still denying the allegations in the lawsuit. In the late April settlement, Dupont agreed to pay $36 million and BASF $12 million to settle dozens of suits filed all over the country that were consolidated into Federal District Court in Philadelphia. A third defendant, Akzo Nobel, settled its share of the suit for $18.75 million in February 2003 while denying all liability. PPG and Sherwin Williams remain as defendants as the federal civil case moves forward in Philadelphia.
The 2004 International Autobody Congress & Exposition (NACE) registration fee will include a badge that will admit attendees to the NACE Exposition, as well as Automotive Aftermarket Industry Week (AAIW) shows - SEMA and AAPEX. NACE will also provide a complimentary shuttle that will run between NACE and AAIW shows. Both arrangements are designed to increase the value and add convenience to attending this year's NACE, being held November 3-6 in Las Vegas during AAIW.
Optimism was in the air at the Arizona Collision Craftsmen's Association (ACCA) May meeting as they celebrated the signing of HB 2468 into law by Arizona Governor Janet Napolitano.
Texas Attorney General Greg Abbott's final settlement in April with two auto insurers will result in estimated refunds of more than $700,000 to Texas policyholders who paid more on their claims for auto repairs than their policies required.
The Motor Vehicle Owners' Right to Repair Act, H.R. 2735, has reached a landmark number of 106 co-sponsors in the U.S. House of Representatives, according to the Coalition for Auto Repair Equality (CARE). The Right to Repair Act was introduced in the House July 15, 2003, by Representatives. Joe Barton (R-TX) and Edolphus Towns (D-NY) and in the U.S. Senate on February 26, 2004, by Sen. Lindsey Graham, (R-SC). The Senate bill, S. 2138, has 10 co-sponsors in the Senate.
A California state court lawsuit for alleged price-fixing by paint companies in the automotive refinishing market has taken a big step forward. Superior Court Judge Ronald Sabraw on June 17 granted a motion certifying the case as a class action. The step is important because individual named plaintiffs, namely small body shops, would have been unable to prosecute an expensive price-fixing case against large corporate defendants such as DuPont and PPG.
U.S. Secretary of Labor Elaine L. Chao announced in April the final regulations governing overtime eligibility for "white-collar" workers under the Fair Labor Standards Act. The regulations had not been substantially updated for over 50 years, creating confusion for workers and employers, generating wasteful class action litigation, and failing to effectively protect workers' pay rights, according to the Department of Labor.