Earlier this week, State Farm agreed to pay for previously denied procedures in materials in another repair involving Gunder’s Auto Center in Lakeland, Fla. Upon the insurer’s denial to provide consideration to shop owner Ray Gunder’s customer for what the shop claims were needed processes and procedures, Gunder says he instructed his attorney Brent Geohagan to file a lawsuit against the insurer on behalf of the customer, a State Farm policyholder, in late February.
In conjunction with filing the complaint/lawsuit on Feb. 24, a Civil Remedy Notice was submitted to the state in an effort to notify and document the issues. The notice stated in part:
"On March 12, 2012, Gunder’s legal counsel received a letter from State Farm’s legal counsel advising that State Farm Ins. would pay the full amount at issue of $79 plus all legal fees and costs in the matter, which are estimated to be $2,000 or more."
Gunder says he hopes that the insurer will begin to pay for necessary labor and procedures right off the bat rather than let the issues escalate to lawsuits.
"It has been interesting to see how State Farm has gone from flat-out denials requiring a hearing in front of a judge to conceding upon receiving a lawsuit and a Civil Remedy Notice," he said. "Hopefully, they will dispense with the initial denials and provide their claimants with the necessary labor and procedures to properly repair people’s vehicles. They could save much more money by providing reasonable compensation than paying legal fees and costs. Maybe this responsible behavior would, in turn, lower insurance costs for their customers.
"As our company’s business consultant and good friend says, ‘Only when the risks begin to outweigh the rewards will behaviors begin to change,’ and it appears State Farm is beginning to understand that and that Gunder’s will not give up the ‘good fight.’ We’ll just continue to pound that rock."
More information:
State Farm Settles Two Lawsuits in One Week with Gunder’s
