Plaintiffs Petition to Court of Appeal to Challenge Trial Court's Order to Undergo Appraisal in Labor Rate Survey Cases

Last week, a petition for writ of mandate was filed with the Second Appellate District of California to challenge a trial court's order requiring plaintiff policyholders to undergo appraisal to determine what labor rates should be paid by the insurance company for work performed by auto body shops chosen by the policyholders.  A copy of that petition is here. 

If accepted for review, this petition could lead to the issuance of important caselaw confirming the use of the appraisal process to address and resolve issues of harm of the lead plaintiff in unfair business practices challenges against insurance companies concerning their claims handling practices.

By way of background, the petition arises from a group of related cases currently pending before Judge West in Los Angeles.  In these cases, it is the contention of the plaintiffs (both auto body repair shops and claimants) that the sued insurers rely upon unreliable and invalid labor rate surveys in placing "caps" upon what they will cover for labor rates charged to repair vehicles.  

The trial court order from which the petition for writ is being taken is here.