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North Carolina Body Shop Wins Short-Pay Lawsuit Against Nationwide

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June 21, 2013—K&M Collision in Hickory, N.C., was recently awarded full reimbursement for damages in a short-pay lawsuit it filed against Nationwide Mutual Insurance Co.

Michael Bradshaw, vice president of operations for K&M Collision, said the lawsuit was based on Nationwide’s underpayment for several “reasonable and necessary repair costs.”

Bradshaw said the insurance company failed to provide proper payment for body, refinish, frame and mechanical labor rates; sand, buff, detail, color tint and road test repair procedures; paint and materials usage; sublet markup; fixture usage; and damage analysis fees for exterior panels, vehicle structure, mechanical components and safety systems.

K&M was awarded more than $2,500 from Nationwide as a result of the litigation.

“For any insurer to expect all shops to operate by the same rates, procedures and charges regardless of training, manufacturer certifications, equipment and facilities is ludicrous. We found that short-pay litigation was necessary to stop insurer underpayments and provide our customers with the factory-certified repairs their policy affords them,” Bradshaw said.

Bradshaw said K&M has filed two more similar cases against Nationwide that have not yet been resolved—one for more than $5,600, and another for more than $10,000.

“I hope our actions and results encourage other quality-minded repairers to seek similar actions against the less than ethical insurers. I know such actions are necessary to stop such behavior and to best serve our community members, our employees and our company,” Bradshaw said. “We’ll continue to share our efforts with others so they may know that they no longer have to accept insurer dictation of repairs, rates, materials and charges.”

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