A trial for a lawsuit filed by a local auto body shop against Ohio-based Progressive Corp. will likely not begin until next year.
Greg Coccaro Sr., owner of North State Custom in Bedford Hills, said last week that trial proceedings would likely not start until 2008
Coccaro had filed a $40 million lawsuit against the insurance company claiming that its “Direct Repair Program” (DRP) is in violation of New York state law. (First reported in the Business Journal Aug. 17.)
Coccaro contends Progressive”™s use of a DRP violates New York”™s anti-steering statute, which states that no insurer providing collision or comprehensive coverage can require repairs be made to a vehicle at a particular business.
His lawsuit is, in fact, a countersuit to a claim that Progressive brought against his shop.
That suit stems from an incident where a customer of Coccaro”™s wanted to have her car repaired at North State, but Progressive asked her to use one of its preferred shops.
Ultimately, she went to North State, but the Progressive estimate of $26,000 was less than North State”™s estimate of $34,000. Progressive eventually paid the bill, said Coccaro, but then two months later sued him for fraud, seeking the total amount of the bill plus an additional amount of money.
Coccaro believes the reason Progressive and other insurance companies use DRPs is to steer customers to shops that will repair a vehicle the cheapest.
Progressive would not comment on pending litigation.
In July, state Supreme Court Justice Gerald Loehr ruled against Progressive”™s motion to dismiss North State”™s lawsuit.
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