Insurer To Pay $20M More In Body Shop Rate-Manipulation Suit

Law360, Los Angeles (June 10, 2013, 11:17 PM EDT) -- A Connecticut state judge has ordered Hartford Fire Insurance Co. to pay $20 million beyond the $15 million it already paid in a class action accusing it of artificially manipulating car body shop labor rates, plaintiff the Auto Body Association of Connecticut said Monday.

Hartford, which paid $15 million following a 2009 jury verdict, will shell out $20 million more in punitive damages to 1,500 Connecticut auto body shops whose appraisers were pressured into relying exclusively on Hartford automobile service representatives, the Auto Body Association said.

The punitive damages are intended to punish Hartford for unfair trade practices — including Hartford's...

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