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INSURANCE LAW: Connecticut Supreme Court overturns $35 million class action verdict brought by auto repair shops alleging price-fixing/steering

INSURANCE LAW: Connecticut Supreme Court Overturns $35 Million Class Action Verdict Brought By Auto Repair Shops Alleging Price-fixing/steering

The Supreme Court holds that insurance companies in Connecticut have the right to negotiate the hourly labor rate that they are willing to pay for auto body repairs and have the right to refuse to give their business to a repair shop with which they cannot agree on a rate. The Court further states that insurance companies can employ appraisers to negotiate the labor rate for repairs on the insurer’s behalf. More particularly, the Court holds that Connecticut Regulation §38a-790-8 does not prohibit the insurance practices at issue.

Artie’s Auto Body v. Hartford Fire Ins. Co., SC 19219 (July 21, 2015)