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Recyclers News Press
ARA Applauds Dismissal of Lawsuit
Against West Virginia Body Shop;
Decisions Affirms the Utilization
of Recycled OEM Parts
MANASSAS, VA – The Automotive Recyclers Association
(ARA) applauds the recent ruling by a West Virginia judge to
dismiss a lawsuit filed in December 2011 by then-Attorney
General Darrell McGraw that attacked a collision repair facili-
ty's utilization of recycled OEM parts.
The ruling in Kanawha County follows the June 2014 ruling by
the West Virginia Supreme Court of Appeals that also af-
firmed the use of salvage/recycled OEM crash parts in vehicle
repairs.
While this specific litigation has been going on for several
years, this final ruling ends decades of mischaracterizing re-
cycled, OEM parts as aftermarket in the state of West Virgin-
ia.
In December 2011 the state of
West Virginia filed a complaint
and petition for injunction
against Liberty Mutual Insur-
ance Company and Greg
Chandler's Frame & Body, LLC,
alleging that the defendants
violated the state's Automotive
Crash Parts Act and Consumer
Credit and Protection Act by
repairing new vehicles using
salvage crash parts without
obtaining the written consent of the motor vehicle owner at
the time of the repair. The Crash Parts Act requires body
shops and insurance companies to disclose to vehicle owners
the use of certain replacement crash parts in repairs conduct-
ed within three years of the repaired vehicle's original manu-
facture date, as well as written consent from the vehicle own-
er to use aftermarket crash parts and the distribution of a stat-
utory notice to the owner that aftermarket crash parts have
been used.
In a January 3, 2012 letter to then-Attorney General Darrell
McGraw, ARA expressed disappointment about statements
published by McGraw's office regarding "recycled"/"salvaged"
automobile parts, specifically objecting to references classify-
ing recycled/salvaged parts to "junkyard parts". "The AG’s
derogatory and misleading characterization of recycled/
salvaged automobile parts does a disservice to consumers in
West Virginia," said ARA in the letter. ARA also distinguished
between aftermarket and recycled OEM parts, writing that
"these quality “green” auto parts also meet the performance,
safety, fit and durability standards of the OEM.".
In a June 2014 opinion, the West Virginia Supreme Court of
Appeals considered the applications of the Crash Parts Act
and the Consumer Credit and Protection Act and found nei-
ther statute prohibited body shops or insurers from utilizing
recycled/salvaged parts, and, moreover, applauded the insur-
ers for using measures to reduce premium costs for their cus-
tomers. The Court ruled that aftermarket crash parts and sal-
vage/recycled OEM crash parts are diametrically different
products and not interchangeable in the context of the statute.
Thus, the use of salvaged/recycled OEM parts by Liberty Mu-
tual and the collision repair shop did not violate the Crash
Parts Act.
The lower court that ruled on January 12 originally ruled in
favor of McGraw's office and the case went on appeal before
state Supreme Court justices, who reversed the decision and
sent it back to circuit court. Kanawha Circuit Judge Charles
King subsequently entered an order in favor of Liberty and the
body shop owner, Greg Chandler of Greg Chandler's Frame
& Body, LLC.
"Together, these ruling are a signifi-
cant step forward for the profes-
sional automotive recycling industry
and the increased utilization of gen-
uine, recycled OEM parts," said
ARA CEO Michael Wilson in re-
sponse to the circuit court's ruling.
"ARA applauds the West Virginia
courts for recognizing the value of
recycled OEM parts to automotive
consumers, collision repairers and
insurance companies, and for sup-
porting the demonstrated role of professional automotive re-
cyclers in today's automotive marketplace."
ARA Updates
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