Farmers Wins Landmark Body Shop Fraud Lawsuit

July 27, 2007

Following a jury trial, a Los Angeles judge signed a $163,387 award to Farmers Insurance Exchange in a body shop fraud lawsuit with future hearings expected to double the monetary award. The Court also issued an injunction prohibiting the body shop, Hollywood Auto Collision and its president Sean Kim, from submitting any further false claims to Farmers.

This was the first such body shop fraud case tried under a 1993 state law designed to augment law enforcement’s efforts to prosecute defrauders. Farmers filed a number of similar lawsuits under this statute, emphasizing its zero tolerance for insurance fraud.

The jury specifically found the defendants knowingly billed Farmers with charges for repairs not actually performed. The jury also found the defendants improperly waived insurance deductibles under certain circumstances.

Source: Farmers Insurance.

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