How to Head Off Lawsuits

Even when it wins a lawsuit, the dealership loses something. There are direct legal costs of attorney fees and court costs. An increase in "frequency and severity" can lead to higher insurance rates if the dealership's carrier provides a defense. A dealership generally becomes a defen...

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Bibliographic Details
Published inWARDSAUTO Dealer Business Vol. 45; no. 9; p. 20
Main Author Charapp, Michael
Format Trade Publication Article
LanguageEnglish
Published Overland Park Informa 01.09.2011
Subjects
Attorneys
Automobile dealers
Costs
Litigation
Settlements & damages
United States > US
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Summary:Even when it wins a lawsuit, the dealership loses something. There are direct legal costs of attorney fees and court costs. An increase in "frequency and severity" can lead to higher insurance rates if the dealership's carrier provides a defense. A dealership generally becomes a defendant because a disappointed customer visits a lawyer as the last chance for obtaining relief. Once the customer's complaint is in the hands of a lawyer, the dealership loses control of events. That fever fades when the legal bills arrive monthly and personnel must divert their attention to a lawsuit. There seldom is a dealer defendant that didn't at some point wish the plaintiff's complaint had been resolved early on.
ISSN:2373-1974