April 4, 2013—Shop owner Ray Gunder, owner of Gunder’s Auto Center in Lakeland, Fla., reported that he has settled a lawsuit he filed against State Farm Insurance.
Attorney Brent Geohagan, legal counsel for Gunder, received a letter from State Farm’s legal counsel stating that they have elected to provide full payment for the disputed amount of $553.77 to settle a lawsuit that Gunder filed for underpayments of labor rates, paints and materials.
State Farm also agreed to pay all of Gunder’s legal fees and costs relative to the lawsuit.
According to Gunder, he raised his body labor rate from $42 to $48 per hour in April 2012 and began demanding full payment of PMC Logic’s paint and material invoices, to which State Farm was resistant.
Along with State Farm, Allstate, USAA, Travelers and GEICO insurance are all defendants in the approximately 40 current lawsuits levied by Ray Gunder.
“Today’s announcement may bring other insurers to reconsider their positions,” said Gunder. “Generally speaking, insurers often follow State Farm’s lead on such issues. It will be interesting to see what happens in the weeks and months ahead.”