Colodny Fass Aids in Dismissal of ‘Flagship’ Anti-Trust Case Against Insurers by Florida Auto Body Shops
Oct 2, 2015
Above: Maria Elena Abate and Matthew Scarfone
By Matthew C. Scarfone, Esq.
Colodny Fass attorneys Maria Elena Abate and Matthew Scarfone obtained a dismissal of a multi-district anti-trust action brought against Florida Farm Bureau in what has been touted as the “flagship case” for auto body shops across the country. Twenty auto-body repair shop plaintiffs alleged that the insurers violated the Sherman Anti-Trust Act by conspiring to suppress the reimbursement rates for auto repairs covered by insurance, and also asserted state law claims seeking damages.
Federal District Court Judge Gregory A. Presnell previously dismissed two earlier iterations of the complaint, which he referred to as “shotgun pleadings” that failed to state clear and identifiable claims. In a twenty-two page order, the court dismissed the repair shops’ third complaint with prejudice, putting an end to this action which has been pending since early 2014. Judge Presnell explained that “[t]he problems identified in response to their initial complaint-shotgun pleading, vagueness, and implausibility-have persisted in their subsequent efforts.”
This case was the first of many lawsuits brought by auto repair shops against insurers throughout the country. Although some cases remain pending, the court’s dismissal of the Florida action may encourage a similar result in those cases. In fact Judge Presnell stated in his Order, “Based upon a review of the pleadings in this and the other 20-odd cases – almost all of which share the same shortcomings – the Court finds that giving the Plaintiffs another opportunity to state a claim would be an exercise in futility.”
Should you have any questions or comments, please contact Matthew Scarfone at (954) 492-4010 or mscarfone@colodnyfass.com.
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