$17M Jury Award Against American Family Mutual Reinstated
Midwest News • May 6, 2009
A Missouri appeals court has reinstated a $17 million jury award in a class action lawsuit against American Family Mutual Insurance Co. over aftermarket vehicle parts.
The Missouri Court of ...
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Subject: simple solution
Posted On: May 6, 2009, 5:02 pm CDT
Posted By: caveat emptor
Comment:
The simple solution to all the aftermarket nonsense is this...
Make it a DOI and BAR regulation that a shop MUST supply any OEM part at their actual cost (NOT list price) but they are permitted to mark up any aftermarket, LKQ, remanufactured or salvage part (and yes, each of these has a different and distinct meaning - they are not all the same). Shops spur consumers to file these lawsuits because they make about 30-50% on OEM parts (assuming they're savvy enough to have worked out a good discount with the OEM supplier) but can generally only mark up aftermarket, LKQ, remanufactured and salvage parts approximately 25%. Slash the profit motive and suddenly all these parts that our fine body shop folks like Wade, Mark and Mike Orton decry here will be just as good as OEM (if not better) and they'll be using every non-OEM part they can get. And I speak from 25+ years in the body shop industry, I KNOW how it goes. Body shops, attorneys, insurance companies - EVERYONE is out to make a profit, no one group is any better than the next.
Also, to whomever it was that said the insurance company contractual obligation is indemnification, that's completely false. The very PREMISE of insurance is indemnification however the CONTRACT defines what the insurance company has decided indemnification IS and as a consumer you are free to choose it or not choose it. If you choose it, you have given up all rights to complain about it. You want OEM only - then you find a company that provides it (and you pay the cost associated with it).
Subject: simple solution
Make it a DOI and BAR regulation that a shop MUST supply any OEM part at their actual cost (NOT list price) but they are permitted to mark up any aftermarket, LKQ, remanufactured or salvage part (and yes, each of these has a different and distinct meaning - they are not all the same). Shops spur consumers to file these lawsuits because they make about 30-50% on OEM parts (assuming they're savvy enough to have worked out a good discount with the OEM supplier) but can generally only mark up aftermarket, LKQ, remanufactured and salvage parts approximately 25%. Slash the profit motive and suddenly all these parts that our fine body shop folks like Wade, Mark and Mike Orton decry here will be just as good as OEM (if not better) and they'll be using every non-OEM part they can get. And I speak from 25+ years in the body shop industry, I KNOW how it goes. Body shops, attorneys, insurance companies - EVERYONE is out to make a profit, no one group is any better than the next.
Also, to whomever it was that said the insurance company contractual obligation is indemnification, that's completely false. The very PREMISE of insurance is indemnification however the CONTRACT defines what the insurance company has decided indemnification IS and as a consumer you are free to choose it or not choose it. If you choose it, you have given up all rights to complain about it. You want OEM only - then you find a company that provides it (and you pay the cost associated with it).