Monday, 19 March 2018 10:17

$713,000 Lawsuit Against Progressive Filed by PA Shop Owner

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When Autobody News asked Perretta if Professionals was asked to use inferior parts, the body shop owner replied, “Yes, as they always do… as they do all shops. We refuse to use inferior parts. The years of tracking the return of those parts have led us to not use them anymore.”


Perretta said he has also found that these parts are not crash-tested or safe.


Therefore, when working on customers’ cars, Professionals “perform[ed] all reasonable and necessary repairs to place the vehicles in their pre-loss condition[s],” according to court documents. When the body shop asked to be reimbursed from Progressive, Perretta said the insurance company paid a fraction of the cost of the repairs.


The $712,972.90 Professionals is seeking in damages represents “unpaid balances, ‘delay time costs,’ and administrative costs.”


Insureds and third-party claimants signed what is called an “Assignment of Proceeds” that authorized the body shop “…to recover any unpaid balances for Professionals’ services and repairs,” court documents stated.


“The body shop has a contract with the consumer and the consumer has a contract with the insurance company,” explained Perretta. “The Assignment of Proceeds allows the body shop to ‘step into the consumers’ shoes to secure a fair and reasonable reimbursement.”


As a result, Professionals is allowed to seek damages from Progressive under the insurance company’s contractual obligations to the insureds and third-party claimants.


“Progressive had a duty to compensate the consumer for a reasonable repair,” he added.


The case was originally filed on August 23, 2017 in the Court of Common Pleas of Blair County, PA. Twenty-five insurance companies were named as defendants. A month later, the Court of Common Pleas removed Progressive from the larger case and the insurance company moved the case to the United States District Court for the Western District of PA.