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Federal judge denies Progressive’s motion to dismiss Price’s Collision Center’s tortious interference and breach of contract claims.
A federal judge has denied Progressive’s motion to dismiss Price’s Collision Center’s tortious interference with a business relationship and breach of contract claims, which challenge improper insurance company steering and underpayment of claims.
In 2011, Price’s Collision Center of Brentwood, Tenn., filed a lawsuit stemming from Progressive’s alleged failure to provide fair and reasonable consideration for necessary procedures, parts and materials that Price’s provided in the repair of Progressive’s policyholders’ vehicles. The lawsuit challenged specific incidences of underpayment by the insurer as well as the insurer’s improper steering of customers away from Price’s to favored shops.
Initially filed in state court in Williamson County, Tenn., on behalf of itself, Price’s Collision Centers, LLC and certain Progressive policyholders, the lawsuit has moved to Federal Court where, on Oct. 28, 2013, the judge denied Progressive’s motion to dismiss and ordered that Price’s claims for breach of contract and tortious interference proceed toward trial.
“This may be the best thing that could have happened for our industry; being at the Federal level may help set some really meaningful legal precedent that is highly beneficial to our industry," said Bobby Price, founder and president of Price’s Collision Centers. "The issues that we at Price’s Collision and other quality repairers are facing are not local, or even regional; these issues are being experienced by quality-minded repairers across the entire country. We have extensive documentation and statements from our customers that go back for some time, and we are prepared to see this through.”
Price’s Collision Center’s, LLC currently own and operates six full-service collision center locations in and around Nashville, Tenn., including one in Bowling Green, Ky.