Allstate Concedes to Gunder's Labor Rates to Settle Pending Lawsuits - BodyShop Business

Allstate Concedes to Gunder’s Labor Rates to Settle Pending Lawsuits

Full payment made to shop to settle 12 pending short-pay suits on labor rate differences.

Gunder’s Auto Center has announced that Allstate has provided full payment to the shop to settle 12 pending lawsuits for short-pays on labor rate differences, plus attorney fees and costs.

According to Gunder’s, in June 2013, Allstate claims management contacted its owner Ray Gunder to request a meeting to discuss Allstate’s interest in bringing closure to the lawsuits Gunder filed on behalf of a dozen of his customers.
During the meeting, it was agreed, based upon service and quality, that Gunder’s was entitled to their labor rate. However, it was discussed that not all repairers deserve the same labor rate, and concern was expressed that if Allstate paid Gunder’s its rate, it would have to pay other shops their rate as well. Gunder said he would continue to share his journey with the industry, and whether a settlement with Allstate was reached or litigation continued, others would find out as his intent was to make sure all repairers and their technical staff are compensated fairly for their efforts, not just Gunder’s.

Allstate is the 44th insurer to date that has agreed to pay Gunder’s full labor rates and materials.

“I’m very appreciative of the way this was handled by Allstate," said Gunder. "No one wants litigation, however sometimes it is needed to get disputes resolved. My hope is that this is truly a new way Allstate does business nationwide, and they speak to the entire industry with one voice. Not all shops are the same, and as such they deserve to be compensated based upon the quality of their service and offerings.

“We’ll be in depositions with GEICO representatives and have continued lawsuits with State Farm. Perhaps the nation’s No. 2 insurer agreeing to our rates will encourage GEICO and State Farm to pay rates and allowances that are ‘fair and reasonable.’ One can be sure that we’ll continue to ‘pound the rock’ until they do."

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