La. Shop Files for Bankruptcy in Wake of Lawsuit

Jan. 3, 2019
A lawsuit was filed against a Baton Rouge, La., body shop last year by Louisiana attorney general Jeff Landry's office, due to customer allegations.

Jan. 3, 2019—Owens Collision and Service Center, of Baton Rouge, La., has filed for Chapter 7 bankruptcy, The Advocate reports. A lawsuit was filed against the body shop last year by Louisiana attorney general Jeff Landry's office, the publication reports. 

According to The Advocate, car owners who wrecked their vehicles were forced to sign a repair contract after being towed to the body shop. Customers allegedly had to sign the document even if they didn't want the company to fix their vehicles, the publication reports. 

In addition, a woman testified that the shop allegedly held her car for ransom after she towed it there, but decided against having the body shop doing the repairs, The Advocate reports.

According to court documents, the company owed $190,492 to creditors and also had $530,178 in assets.

Sponsored Recommendations

Best Body Shop and the 360-Degree-Concept

Spanesi ‘360-Degree-Concept’ Enables Kansas Body Shop to Complete High-Quality Repairs

Maximizing Throughput & Profit in Your Body Shop with a Side-Load System

Years of technological advancements and the development of efficiency boosting equipment have drastically changed the way body shops operate. In this free guide from GFS, learn...

ADAS Applications: What They Are & What They Do

Learn how ADAS utilizes sensors such as radar, sonar, lidar and cameras to perceive the world around the vehicle, and either provide critical information to the driver or take...

Banking on Bigger Profits with a Heavy-Duty Truck Paint Booth

The addition of a heavy-duty paint booth for oversized trucks & vehicles can open the door to new or expanded service opportunities.