In June 2013, Allstate claim’s management contacted Ray Gunder and requested a meeting to discuss Allstate’s interest in bringing closure to the lawsuits of which Ray had filed against the nation’s second largest insurer on behalf of a dozen of his customers.
During the meeting with Allstate’s Tom Travis and Greg Ashley it was agreed, based upon service and quality, that Gunder’s Auto Center was indeed entitled to their labor rate, however, not all repairers deserve the same labor rate, and concern was expressed, that should the word get out, how Allstate would pay Gunder’s labor rate without having to do so for other shops. Ray advised he would continue to share his journey with the industry, and regardless, if a settlement with Allstate was reached or litigation continued, others would find out as his intent was that all repairers and their technical staff would be compensated fairly for their efforts, not just Gunder’s.
In July Gunder’s was advised that Allstate would settle all twelve pending lawsuits by paying the full labor rate and all related attorney fees and costs. Full payments for each were received last week. Allstate makes the 44th insurer to date which has agreed to pay Gunder’s full labor rates and materials.
Ray stated: “I am very appreciative of the way this was handled by Allstate. No one wants litigation, however sometimes it is needed to get disputes resolved. My hope is this is that this is truly a new way Allstate does business nationwide and they speak to the entire industry with one voice. Not all shops are the same and as such they deserve to be compensated based upon the quality of their service and offerings.”
“We’ll be in depositions all week with GEICO representatives and have continued lawsuits with State Farm. Perhaps the nations #2 insurer agreeing to our rates will encourage GEICO and State Farm to pay rates and allowances that are “fair and reasonable”! One can be sure that we’ll continue to “pound the rock” until they do!”