Michael Bradshaw of K&M Collision in Hickory, N.C., filed a lawsuit against Nationwide Mutual Insurance Company on behalf of his customer, the insurer’s policyholder.
Like this article? Sign up to receive our weekly news blasts here.After unsuccessful attempts to have his customer’s insurer pay for reasonable and necessary parts, procedures and materials, it was necessary to inform his customer of the short pay by their insurer, Bradshaw said.
The customer indicated he wanted the vehicle repaired properly and authorized K&M to proceed with the repairer’s recommended repair activities and signed documentation authorizing Bradshaw to act in his behalf in filing a lawsuit against the insurer seeking full compensation for the repairer’s recommended and performed activities.
The claim includes denial of procedures including test-drive, removal of molding adhesive from painted panels, tint color, finish sand and buff and underpayments of numerous other reasonable and necessary processes including body, refinishing and mechanical and frame labor rates, material allowances and storage charges for the insurer’s delays. The total amount sought in the lawsuit is $2,956.98 plus legal fees and costs, according to Bradshaw.
To avoid holding the vehicle until receipt of full payment, K&M Collision allowed their customer to take possession of the properly repaired vehicle with the understanding that all billings remained their full responsibility in the event the insurer failed to provide full payment.
“We value our customers and work hard to ensure their repairs are done properly, thoroughly and in a timely manner," said Bradshaw. "It’s unfortunate that such legal activities have become necessary. Consumers rely upon insurers to be there in their time ofneed and when they need them most, and when they fail to keep their promise, who can blame the consumer for becoming upset. Our efforts will be to illustrate to the court the insurer’s intentional breach of contract, unfair and deceptive trade practices and their acting in bad faith.
"Once the insurer was notified of the underpayments and chose to deny ample consideration, it was no longer a mere error or oversight. We will be illustrating to the court that the insurer intentionally withheld payment in a self-serving interest and not in the interest of their policyholder and as such we will seek fees and costs as well as punitive damages,” Bradshaw said.
