GEICO Wins Appeal in Texas Labor Rate Case

Feb. 25, 2019—A San Antonio auto body shop has lost an appeal against GEICO to recoup funds it says were lost in a breach of contract claim, according to the SE TexasRecord.

On Feb. 13, the 4th Court of Appeals in San Antonio affirmed the 45th Judicial District Court of Bexar County's ruling granting a traditional and no-evidence summary judgment to GEICO Casualty Co. A judge ruled that MRG Inc. and Miracle Body and Paint "failed to produce evidence of mutual assent to the terms of an express or implied contract." 

Miracle Body and Paint  is a San Antonio-based, independently owned body shop. The company sued GEICO over allegations of breach of contract, breach of implied contract, quantum meruit and suit on a sworn account, and, in the alternative, negligent misrepresentation, fraud and fraud by nondisclosure, according to the report.

According to the ruling, Miracle performed auto body work on vehicles insured by GEICO and GEICO paid Miracle according to the labor rates disclosed in the GEICO repair estimates. The lawsuit states that after completing the repairs, GEICO failed to pay the full amount for repairs to multiple vehicles because the labor rates in GEICO’s repair estimates are lower than the rates Miracle charges.