Lawsuit Round-up

Lawsuit related to insurer payment for scanning among court cases that came to an end recently

By John Yoswick

Courts around the country in recent months have worked through legal challenges regarding insurance industry practices, employment matters, “assignment of proceeds,” and other issues involving those involved in broader “collision industry.” Here is Automotive Report’s annual look at recent and ongoing legal battles, and what they could mean for the industry.

Scan payment lawsuit comes to an end

What was once an attempt to establish a national class-action lawsuit against Geico related to its alleged refusal to pay for pre- and post-repair scans appears to have limped along to a halt last fall. Almost four years ago, Oregon shop owner Leif Hansen filed the suit, over what he said was the insurer’s refusal that year to pay for pre- and post-repair scans of his personal vehicle, which Geico insured. He was seeking class-action status on behalf of Geico insureds nationally.

But earlier in 2020, a U.S. District Court judge ruled that state laws regarding “bad faith” vary too widely for drivers in all states to be included in the proposed class of plaintiffs, so the suit…

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