Artie’s Auto Body, Inc. v. Hartford Fire Ins. Co.

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Plaintiffs, automobile body shops and an auto body association, brought this class action against Defendant, The Hartford Fire Insurance Company, on behalf of more than 1,000 independent auto body repair shops in Connecticut, claiming that Defendant violated the Connecticut Unfair Trade Practices Act (CUTPA) by requiring its staff motor vehicle physical damage appraisers to use, when appraising auto body damage sustained by Defendant’s insureds, the hourly labor rates agreed on by Defendant and the plaintiff auto body shops instead of rates that more accurately reflect the actual value of those services. The jury returned a verdict in favor of Plaintiffs, concluding that Defendant’s hourly rate practices constituted an unfair trade practice because they offended the public policy found in section 38a-790-8 of the Regulations of Connecticut State Agencies. The Supreme Court reversed, holding that the trial court incorrectly concluded that section 38a-790-8 supports Plaintiffs’ CUTPA claim alleging unfair labor rate practices. View "Artie's Auto Body, Inc. v. Hartford Fire Ins. Co." on Justia Law