Nov. 27, 2013—A federal judge has denied Progressive Insurance’s motion to dismiss claims made by Price’s Collision Center of Nashville, Tenn., accusing the insurer of steering and underpayment of claims.
According to a release_notes from Auto Damage Experts on Tuesday, Price’s Collision filed under claims of “tortious interference with business relationship,” which indicates improper insurance company steering, and “breach of contract” for payment issues the shop claims to have had with the insurer.
In 2011, Price’s Collision Center filed a lawsuit stemming from Progressive’s alleged failure to provide fair and reasonable consideration for necessary procedures, parts and materials that Price’s provided in the repair of Progressive’s policyholder’s vehicles. The lawsuit challenges specific incidences of underpayment by Progressive as well as Progressive’s improper “steering” of customers away from Price’s to “favored” shops.
Initially filed in state court in Williamson County, Tenn., the lawsuit has moved to Federal Court, where, on Oct. 28, the judge denied Progressive’s Motion to Dismiss and ordered that Price’s claims for breach of contract and tortious interference may proceed toward trial.
“This may be the best thing that could have happened for our industry; being at the Federal level may help set some really meaningful legal precedent that is highly beneficial to our industry,” said Bobby Price, founder and president of Price’s. “The issues that we at Price’s Collision and other quality repairers are facing are not local, or even regional. These issues are being experienced by quality-minded repairers across the entire country. We have extensive documentation and statements from our customers that go back for some time. We are prepared to see this through.”
Price’s Collision Center currently operates six full service collision center locations in and around the Nashville area.
