Auto Insurance Claims: Bad faith case?, safeco insurance company, john bentley


Question
The following is my ongoing car repair nightmare:

On January 14, 2007, Clay (38 yrs old), Susie (30 yrs old) & Ian (2 yrs old)
were in a car accident. Hit by Sarah Bentley (policy held by her husband John
Bentley). I (Clay) had my 2001 Volvo S40 towed to Momentum Paint & Body
(9911 Centre Pkwy. Houston, TX 77036, ph. 713-596-3250) on Sunday,
January 14, after the car accident rendered the car un-drivable. SafeCo
Insurance Company accepted full liability for the accident, and adjuster
Darren Gaines authorized the repairs to begin in early February.  The body
shop service representative, Jimmy Caver, estimated $6800 in repair costs
and stated that repairs would take approximately 2-3 weeks and assured me
(Clay) that the car would be restored to it’s original condition and as reliable
as before the accident. I originally bought the car as a “Certified Pre-owned”
in March 2004, kept it well-maintained and never had any problems with it at
all.
For nearly two months (early February through late March) the only
communication I had with the body shop was initiated by me and leaving
messages never resulted in a return phone call, so if I failed to get Jimmy on
the line I was out of luck. During each conversation I initiated with Jimmy, I
was told "2-3 more weeks" because "it's hard to get parts."  
At the end of March I finally contacted the General Manager of the body shop,
Joe Davis, to log an official complaint about the lack of communication and
the length of time the repairs were taking.  Joe told me that the repairs would
be "expedited" and we should expect the car by the end of March, and
apologized that his staff had not been calling me weekly with updates on the
status of the repairs.  After my conversation with Joe Davis, I was repeatedly
told by Jimmy that the car would be ready "the end of the week" or "2-3 more
days" due to unforeseen needed repairs (like the ABS module or checking the
computer system). In early April, I attempted to get an update from SafeCo
only to find out that the adjuster, Darren Gaines, was no longer employed by
SafeCo and no automobile adjuster had been assigned to our case to replace
him, so no one had been overseeing repairs or following up with Momentum
while costs continued to mount. The following Monday a new adjuster, Telly
Berry, was assigned to the claim after I brought the fact that no one was on
the case to SafeCo’s attention.
After my applying significant pressure for weeks, which included contacting
both Steve Graham (the Service Dept. Manager at Momentum Jaguar Volvo)
and Volvo North America, on Saturday, April 21st, I picked up my car, which
was supposed to have been fully repaired and received an invoice showing
approximately $14,500.00 in charges. The car was not fully repaired.
I returned the car to Momentum Paint & Body on Monday, April 23rd, after
having it back in my possession for approximately 36 hours. The car was still
leaking oil (which it did not pre-accident and this was noted on my first fax
to Momentum; Momentum initially told us that they were sure that SafeCo
would not pay for this repair because it was “normal wear and tear” and told
us we would need to pay, but SafeCo authorized repair), also had a grinding
noise accompanied by vibration in first gear, and significant noise which
seemed to be coming from the rear wheel assembly when driving across even
slightly rough paving. In addition to these significant concerns, the sunroof
rattled when the door was shut, the Volvo logo on the front passenger’s tire
was missing, and the radio and car alarm had not been reset. Following is a
summary of what we discovered in the first 24 hours after picking up the car
on 4/21/07:
1)   Leaking oil (noted on 1st fax to Momentum - was a result of the rear
main seal; Momentum initially told us that they were sure that SafeCo would
not pay for this repair because it was “normal wear and tear” and told us we
would need to pay, but SafeCo authorized repair)
2)   Noise in 1st gear (was a result of cracked motor mounts and
transmission problems – again told SafeCo would not pay, but they
authorized a new transmission)
3)   Thump in rear passenger wheel well (was a result of an unsecured tail
pipe)
4)   Missing front wheel Volvo logo
5)   Sun roof rattle when door closed
6)   Alarm & radio not reset

Both Clay and Susie returned car on 4/23/07 and demanded free rental and
prompt attention.  We would not back down on the car rental liability by
Momentum, and Jimmy Caver agrees to cover cost for 1 day (expected time to
get the car fixed).  After 1 day and multiple problems confirmed, Clay called
and pressed for rental car liability to be absorbed by Momentum until car was
fixed; Jimmy approved.
We were told by momentum Paint & Body rep Jimmy Caver on 5/12/07 that
the noise in 1st gear was related to major transmission problems and that
SafeCo adjuster Telly Berry had deemed this as “normal wear and tear” and
refused to pay for this repair. Momentum Service rep Debbie Martin says that
we can save $1000 in labor costs and pay for this $2400 in parts (new
transmission) out of our pocket if we authorize quickly, while they have the
transmission pulled to replace the rear main seal on the engine.  I call SafeCo
adjuster Telly. Telly returns my call mid-afternoon and indicates that he has
not spoken to anyone from Momentum (including Jimmy Caver) about this
transmission problem and has not denied the repair.  Telly runs it up the
chain of command, and ultimately approves repair at the end of the day.  
Mentions that that we are approaching the limit of the other driver’s policy
and these transmission repairs will take us over the top.
On 5/18/2007 we received a call from Debbie Martin (Momentum Service
Dept. Rep) that the car was finished and we could pick it up. I return the
rental car and pick up the “repaired” 2001 Volvo S40. I receive a second
invoice for approximately $4700 paid by SafeCo for the most recent repairs.
Debbie advises me to get rid of car as soon as possible as it will never be
reliable due to the amount of damage sustained in the accident. The total
paid by SafeCo now totals nearly $19,000 in repairs for a car that had a retail
value of approximately $11,900 before the accident, because of its excellent
condition and regular maintenance. That evening I notice that the Volvo logo
on the front wheel still has not been replaced.
The next morning (5/19/2007) the “Check Engine” light appears on the dash
console, the engine is making unusual sounds in idle, the car sputters and
almost dies about two blocks from home and Susie returns home. We call
Debbie Martin who says to bring the car in immediately. We are able to drive  
the car to Volvo Service and wait approximately 2 hours for news of what is
wrong now. Initially we are told that the problem was an air intake part
unrelated to the accident, then told that that didn’t solve the problem, they
would have to do more extensive investigation, and given a loaner car and
sent on our way.

The overall pattern of inattention to detail as well as the major problems that
clearly still exist despite the attempt to repair my car leaves me very
concerned about what else may still be wrong with the vehicle, especially in
the engine. The 4-month mark of me being without my car has come and
gone, and there is still no end in sight.  I no longer am convinced that this car
is able to be repaired to a point of reliability.

  As it now stands, SafeCo has paid out all that was covered by John
Bentley’s policy, plus a little more. Momentum Paint & Body has gladly
accepted all this money, but has not given me back a working vehicle.
Momentum Paint & Body, Momentum Service and Momentum Sales are all
owned by the same company, Sonic Automotive. Ricardo Weitz sold the
Momentum dealerships to Sonic in July 2003, but is still involved in their
manufacturer’s relations and market strategy according to the information
I’ve been able to find. At this point I believe Momentum needs to either repair
my car to my satisfaction (which may not be feasible) or provide me with a
comparable, Certified Pre-owned vehicle from their lot that has not been in
an accident. If they were to do so at this point they should still come out with
a profit by my estimation. I am a full-time student working toward my
Master’s degree and can’t just go get another car and write this one off to
bad luck. Any help you can provide would be greatly appreciated.


Answer
Hi Clay,

Your explanation was quite lengthy and you really did not ask a question, but I will do my best.

At this point you can consider Safeco to be out of the picture as they have exhaused their available coverage.

What you will need to do at this point is to find another shop to completely inspect the vehicle top to bottom. Have them make a written estimate of all of the costs to correct any problems found. Then you will need to provide a copy of that estimate to the first body shop with a formal demand for payment for the costs of the corrections. You should not ever let the first shop touch your vehicle again.  If they refuse to pay, you will have no choice but to file a lawsuit against the shop.

I hope this helps
Richard Hixenbaugh