Expert: Doctor Settlement - 4/29/2007

Question
Someone hit my rear bumper and I got his insurance info (no police report). Insurance co sent me to one of their Direct Body Shops, and had an estimate. Weeks later, I authorized them to repair the car and Insurance co to send the body shop check directly. However, insurance co never authorized the repair because (1) their insured never responded to their call; (2) although I have the plate #, insurance #, but I don't know exact model/year. Now body shop ask me to pay. Am I liable? I signed the authorization (std format) to have them fix my car and direct payment from insurance co to the body shop. Nowhere in the document did it claim that I would have to pay if they fail to get the money from insurance co.

Answer
Dear James,

You have four responses, some of which you might make simultaneously.   

The FIRST thing it to turn in the claim to your own auto insurance carrier.  They will pay the body shop, less your deductible.  They will then get their money reimbursed via a claim against the first company (or a suit versus the tortfeasor).  You piggyback on that and get your deductible back.

If for some reason you elected to forego collision insurance, then you will have to try one or more of the following.

SECOND is to get ahold of a lawyer referral service attorney in your state.  You can call the state bar association or the county bar association.  These lawyers will do one hour of service for low fees, like $35 per hour.  

Ask them to write a letter to the auto body shop owner to get your car back.  He has no contract from you guaranteeing payment, but your state likely does have a mechanics lien statute.  Since you did authorize the work, he can then claim that the value he put in to the car is owed to him on the legal basis of quantum meruit.  When there is no explicit contract requiring a person in your position to pay, yet you knew your property was being benefited by the work you authorized to be done, the workman can collect just the same.  The legal theory of Quantum meruit means something along the lines of "reasonable value of services".

The attorney will convince him to take an assignment on your claim.  The auto body shop owner and the attorney will also combine to put pressure on the supervisor of the adjuster who cannot seem to put pressure on his own insured.  

THIRD is to just file a suit versus the tortfeasor.  Your department of licensing will give you his name and address.  Simply go to small claims court and file the suit, sending a copy to the insurance company.  That will get them to go out and make contact with him.

FOURTH is to complain to the state insurance commissioner www.SettlementCentral.Com/links.php and tell him that you would not have had the car repaired BUT FOR the authority granted by the insurance company.  Not only should they pay for the repairs, they also have to pay for your loss of use for the days you did not have adequate transportation.

BUT, BEFORE you file the complaint, send an “advance notice” copy to the supervisor and advise that you will forego the complaint if he will pay for your car and also get you compensation for the loss of use time.  

Good luck with these,


Dr. Settlement, J.D. (Juris Doctor)
Http://www.SettlementCentral.Com