N.Y. court: Auto body shop lien to stand even though State Farm dislikes $120 rate
After a collision State Farm’s insured brought her extensively damaged vehicle to MVB (Mid Island Collision Centers). The insured entered into an agreement for MVB to perform the repair work. That agreement provided that MVB would be compensated based upon a labor rate of $120 per hour and that the insured was liable to MVB for any charges in excess of those approved by State Farm. But in a second agreement State Farm’s insured was relieved of that liability.
The second agreement provided that MVB would exculpate the insured from payment of any charges not approved in exchange for an assignment of her rights of recovery under the insurance policy.
During the course of the work State Farm made various inspections, supplemental inspections and issued approvals for additional work following each inspection. Eventually State Farm declared the car a total loss and advised MVB to cease work, however MVB responded that the work had already been completed and submitted an invoice.
CONCLUSION: MVB’s lien is valid.
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