California shop owners intent on pursuing class action lawsuit vs. State Farm - - ABRN (Automotive Body Repair News)

California shop owners intent on pursuing class action lawsuit vs. State Farm

Source: Automotive Body Repair News

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Some 75 California collision repair professionals representing about 40 body shops spent their Thursday evening discussing the details involved in filing a class action lawsuit against State Farm Insurance over alleged steering. The consensus reached at the Nov. 12 gathering was that they should move forward with all deliberate speed.

The next step is to continue gathering the evidence and documentation needed to overcome the withering scrutiny that comes with such an important court case.

“My intent is to sue the heck out of State Farm; I just want their neck over the barbed wire before I clip it,” says industry activist Gene Crozat of G&C AutoBody, who organized the meeting at a Sacramento hotel.

A number of shop owners traveled a long distance to be there.

The attendees expressed how much they are “frustrated with the current state of affairs and frustrated with steering that just doesn’t seem to go away,” reports G&C spokesman Peter Bizaca.

“They left the meeting feeling good that someone was out there doing something positive,” he notes. “They left feeling that they are not alone and that there is hope.”

“The class action sounds good,” says Gary Liu, manager of Bee Automotive Collision Center in San Francisco. “It’s something that needs to be done. We’ve been battling the insurance industry for a long while – it’s like David and Goliath,” he points out.

“It’s hard for a mom and pop shop to fight this battle,” Liu continues. “We’re going to need help, but we’re going to do it.”

Liu is particularly pleased that Crozat and his staff handed out binders filled with information that repairers can use to further pursue their case. The packet includes “instructions on how to get written evidence,” such as forms and regulations plus testimonials from G&C customers who have successfully taken State Farm to small claims court.

“It was all-encompassing,” says Bizaca as he recounts the agenda. Steering, labor rate surveys and small claims court filings were covered along with contemplating the proposed class action case.

“We had shops from all over Northern California,” he says. “The tables were filled.” Although about 80 shop owners had indicated they would attend, the final tally is still enough to drive home the value of a concentrated effort.

“They are ready to participate, but they are aware that it will be difficult,” Bizaca explains.

Mainstream media outlets may shine the glare of publicity onto the scenario as the Los Angeles Times and Sacramento Bee each sent reporters to cover the event. “We have the press on top of this,” says Bizaca.

A second meeting is to be scheduled in January, set in Orange County to reach repairers throughout the Los Angeles basin and stretching down to the San Diego border region.

The Sacramento session stressed that class action lawsuits can be a tough road to navigate, which is why thorough documentation plays such a large role. Two lawyers, Mark Venardi and Martin Zurada, were on hand to present some of the particulars.

A united front is imperative, according to Venardi, who cites a string of unsuccessful class action filings over the years. The burden of proof is strong.

Nonetheless, “the legal system is the last potential remedy.”

Commenting on the trials and tribulations inherent in the longtime shops vs. carriers conflicts within the Golden State marketplace, Zenardi observes that “you can’t count on the legislature (and) you can’t count on the Department of Insurance – so what can you do? You can count on yourselves and you can hire a lawyer.”

California insurance industry representatives, including State Farm executives, have consistently denied that steering takes place, insisting that they strictly adhere to all existing regulations.

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Comments from our Readers
 Posted 2009-11-13 19:21:57.0
Way to go!! I'm looking forward to seeing your group kick State Farm in their collective butts! The first thing State Farm will do is put everybody under surveillance, so make sure you do it to them too.
 Posted 2009-11-16 13:35:21.0
I hope you guys get it pulled off... Infact the tow truck just left here less than 15 min's ago that state farm had just scared their insured enough to move to another shop... Vehicle was'nt here for over 2 hrs, so State Farm moved fast on this one.
 Posted 2009-11-16 13:43:48.0
What about the rest of them...get 'em all!!
 Posted 2009-11-16 13:47:40.0
It seems to me that most of the shops screaming are the ones that have DRP's for sooooo low of rates that they dont want to give them to Satatefarm as well. In our area I wish there would be more steering. It just doesnt happen with Statefarm at this time. Try going after some that do in the face of the public and BAR, Gov...How about Progressive,or the green lizzard I could understand...BUT Statefarm..COME ON
 Posted 2009-11-16 14:41:43.0
State Farm has been steering for along time.(years)Progressive also very active with steering. I hope they really take it to State Farm and Progressive!!!!!!!!!!!!!! Not only in CA, but in PA.
 Posted 2009-11-16 17:04:36.0
Way to go guys. I hope this puts "The Lizard Company" and others on notice that they have gone too far for far too long. Way to go Gene! Sorry I couldn't be there.
 Posted 2009-11-16 17:10:20.0
Auto Club, Allstate, Progressive, State Farm: they are all guilty of steering. I am so glad that shop owners are getting behind this. Hopefully they will get the damned message this time. We won't be stopped until we get justice!
 Posted 2009-11-16 17:32:27.0
Well from what I saw at the meeting, the only ones there were shops that had work steered away from them and were not on the state farm DRP list. if you think they don't steer you're clueless. I have personally had work steered from my shop by all insurance companies. state farm ranks right up there with the worst. they all have their problems and there are some worse than others. it really depends on who your local adjuster is and how strictly they follow their company guidlines. I have had good state farm adjusters and bad. there are some things that they just won't negotiate with though. one is labor rate. they want to go by their survey that is purely bogus. Geico and AAA are just as bad if not worse. they all dillute their surveys to their benefit and there is no one at the DOI to enforce it anyhow and they know it. it is collusion at its worst and it affects every bodyshop and our customers within the state. make an example out of State Farm since it is the largest in the state and perhaps someone within the DOI will have to do something to change the way all the ins companies do business. peace out!
 Posted 2009-11-17 08:10:57.0
LETS DO THE SAME THING TO GEICO AND ALLSTATE IN THE NORTH EAST 516-933-7327
 Posted 2009-11-17 08:32:10.0
This has been along time coming, I would like to see it spread to Indiana.Two weeks ago one of my long time customers was hit by a State Farm insured,They tried three times over the phone to get them to move the car and stopped just short of telling them I was'nt capable of repairing their car.Turned out it totaled anyway.We've let the tail wag the dog for to long!!
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