Monday, 19 March 2018 10:17

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

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“Professionals alleges that Progressive failed to reimburse it for the full amount of the reasonable and necessary repairs without a valid justification,” according to court documents. “Furthermore, Progressive knew of or recklessly disregarded this lack of a reasonable basis because it failed to fully reimburse Professionals despite Professionals informing Progressive on several occasions that it had failed to pay the full cost of all reasonable necessary repairs on each of the vehicles that Professionals serviced…


“The fact that Progressive has a long history of failing to fully reimburse Professionals supports Professionals’ argument that Progressive acted in bad faith.”


Accordingly, the court denied the insurance company’s motion to dismiss the bad faith claim in regard to the insureds.


Regarding the statute of limitations, the Court granted Progressive’s motion to discuss the bad faith claim for those that occurred before August 23, 2015.


Intentional Interference With Business Relations

Progressive also tried to dismiss the intentional interference claim by Professionals and said the body shop “…fails to allege that any of its contracts with its customers were breached or not fully performed because of Progressive’s alleged breach, emphasizing that Professionals admitted that it ‘completed the terms of its contract with each vehicle owner.’”


Professionals responded that it suffered actual losses due to the conduct from Progressive.


The Court ruled that Professionals did not plead a plausible tortious interference claim, which requires “purposeful action on the part of the defendant, specifically intended to harm the existing relation,” according to court documents. As a result, it granted the insurance company’s motion to dismiss the intentional interference claim.