New York Supreme Court Denies Insurer's Motion to Dismiss Case Involving New York Body Shop - BodyShop Business

New York Supreme Court Denies Insurer’s Motion to Dismiss Case Involving New York Body Shop

Case brought against Liberty Mutual by Nick Orso's Body Shop for short pay, labor rate and more will continue.

The Supreme Court of the State of New York, Appellate Division, Fourth Judicial Department has denied Liberty Mutual’s motion to dismiss causes of action brought by Nick Orso’s Body Shop including quantum meruit (unjust enrichment) and deceptive business practices.

Attorneys for Liberty Mutual argued that the plaintiffs (Nick Orso’s Body Shop and Jeffrey’s Auto Body) “lacked standing” because their assignors were strangers to the underlying insurance policies.

“Insurance companies have continually attempted to get the courts to agree that we (shops) do not have the legal standing to sue or pursue collection on our customers’ behalf,” explained Mike Orso, owner of Nick Orso’s. “Every twist and spin fails, however, as case law is well established.”

He added, “Basically, some insurers who still don’t want to play nice or are not willing to negotiate and settle claims during repairs project that sentiment to the law firms that represent them – possibly following insurance company directives to not settle claims and fight on at all costs.”

Jeffrey’s Auto Body and Nick Orso’s use the same law firm, so since the motion was to dismiss both Nick’s and Jeffrey’s suits for "standing," they were combined. Both cases also involve the same issues: short pay, labor rate, paint and materials, P-page procedures and non-OEM parts.

Nick Orso’s has four to six lawsuits remaining, plus many small claims court cases. While some cases have been resolved, some are active in various stages of discovery, pending motions and trial date assignments.


More information:

Esurance Settles Assignment of Proceeds Cases with New York Body Shop

You May Also Like

TechForce Foundation, SkillsUSA Partner to Solve Tech Shortage

The mutually beneficial collaboration will help students garner the skills, education and support needed to successfully develop careers as professional technicians.

TechForce Foundation announced it has entered a strategic collaboration with SkillsUSA to empower the next generation of skilled collision repair, aviation, automotive, diesel and welding technicians and tackle the technician shortage head-on. The mutually beneficial collaboration will help students garner the skills, education and support needed to successfully develop careers as professional technicians.

SEMA Appoints New Chief Financial Officer

Ryan Stutzman will replace George Afremow, current vice president and chief financial officer, who will retire in June after 12 years with the association.

Car ADAS Announces Opening of New Calibration Center 

Car ADAS Solutions has announced the opening of a new calibration center named ADAS Solutions in Lansing, Mich.

Transtar Announces Agreement for Axalta to Acquire The CoverFlexx Group

Axalta Coating Systems has signed a definitive agreement to acquire Transtar Holding Company’s subsidiary The CoverFlexx Group.

SUNY Morrisville Named No. 1 MCAP School in Country

The school’s Mopar Career Automotive Program students were re-crowned champions in the first-ever Mopar Career Automotive Program Bracket Challenge.

Other Posts

Crash Champions Acquires Bavarian Body Works in Atlanta

The acquisition adds two high-quality collision repair centers located in Marietta and Atlanta, Ga.

Painters Supply and Equipment Acquires AeroCoat Source

AeroCoat distributes high-quality coatings and painting solutions, serving customers across the aviation and military sectors.

AASP/NJ to Host Industry Night

Four industry companies will present info on EVs, OSHA, ADAS calibrations and more.

Auto Color & Equipment Joins Wesco Group

Auto Color & Equipment has been servicing Missouri since 1987.