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GEICO Wins Appeal Case Against Body Shop Over Labor Rates

A Texas body shop has lost an appeal against GEICO dealing with lost funds over labor rate differences, according to an article by the SE Texas Record.

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A Texas body shop has lost an appeal against GEICO dealing with lost funds over labor rate differences, according to an article by the SE Texas Record.

The 4th Court of Appeals in San Antonio granted a traditional and no-evidence summary judgment to GEICO Casualty Co. after Miracle Body and Paint failed to provide evidence of an agreement on an implied contract, according to the article.

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 article.

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. But the lawsuit said that GEICO’s labor rates were lower than Miracle’s so the insurance company shorted the body shop, according to the article.

“GEICO argues Miracle did not produce more than a scintilla of evidence to establish the existence of any valid contract in which GEICO agreed to pay Miracle based on labor rates in excess of the rates disclosed in the GEICO repair estimates,” the ruling states.

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