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News, Events, Canada
January 2004

 


Click on the month below for News / Events in 2006
June
Click on the month below for News / Events in 2005
Click on the month below for News / Events in 2004

In order of most recent


January 2004

 

“CHOP SHOP” GETS TARGETTED

Police raid Stoney Creek, Ontario house


January 24, 2004

Police have charged one person in connection with a “chop shop” in Stoney Creek that was allegedly selling vehivles cobbled together from stolen parts, according to an article in the Hamilton Spectator.

“It was a very organized auto theft ring and the vehicles were being resold to unsuspecting buyers in the Hamilton area” said Sergeant Ian Mathews of the Break, Enter Auto theft and Robbery (BEAR) unit yesterday.

He said police arrested a man on a large residential property on Highway 8 near Winona Road, which has two houses and several outbuildings on it. He added the accused, whom police have not identified, is in custody but he wasn’t sure what charges he is facing.

Police towed away a number of intact vehicles as well loads of vehicle parts after searching the compound for several hours yesterday. The vehicles were taken to a compound at the new police station on Rymal Road where their vehicle identification numbers (VIN) were being compared to determine where and when they were stolen.

Detective Constable Will Matson said police found four or five large trucks that were intact or nearly intact and all kinds of vehicle components, including engines, truck frames and wheels.

“There was everything you could imagine that comes from a truck” he said.

He estimated the value of the vehicles were at least $50,000 and probably as much as $100,000 or more. He said the investigation is in its early stages and police are still trying to assess the scope of the operation.

He said the organization involved at least two individuals, including another person they expect to arrest next week. He added the person arrested yesterday had lived in one of the two houses on the property. According to neighbours, the houses are owned by members of the same family.

Police said the chop shop was operated out of a large garage-style building in the back yard where they found vehicles and parts.

(see headlines)

 

MAYOR PRAISES HARA’s WORK ON ENVIRONMENT AND FIGHTING TOW CHASING

Largest CCIF meeting ever held hears Mayor’s comments

January 12, 2004

Hamilton Mayor Larry DiIanni, kicked off the most successful meeting in Canadian history for the Canadian Collision Industry Forum (CCIF) in Hamilton, Ontario with congratulations to the Hamilton District Autobody Repair Association (HARA) and its Executive Director, John Norris for their environmental awards and their positive work with City Council in convincing the City to successfully implement a police-enforceable towing by-law.

The trade association had made a number of positive presentations to City Council and convinced Council that serious action needed to be taken on the issue of two truck “chasing”, involving tow operators rushing to motor vehicle accident locations in order to try and convince dazed and injured consumers to let them tow and then repair their damaged vehicles.

The Mayor identified that a number of “chaser” tow firms also appeared before City Council and were opposed to the City’s actions, but that HARA’s presentations “won the day”.

Mayor DiIanni also praised the association as the winner of the Gold Environmental Commitment Award for the Regional government for the extra work that was being done by HARA to reduce smog-causing emissions into the atmosphere and contribute to cleaner air in southern Ontario.

(see headlines)

 

Liberty Mutual Buy Adds Clout to TD Insurance Subsidiary

A TD Bank Financial Group subsidiary has struck a deal to buy Canadian home and auto insurance operations of Boston-based Liberty Mutual Group.

The deal will make TD’s Meloche Monnex one of Canada’s largest personal property and casualty insurers, with 1.4 billion in written premiums and more than 1.3-million policy holders.

“It puts us in the top four and we believe that’s a position that allows us to have greater visibility and to attract more talent,” Alain Tibault, president and CEO of Meloche, said yesterday.

Financial terms of the deal were not released.

Thibault said Liberty’s results had been disappointing for the last couple of years as the firm lost money at its Canadian home and auto insurance operations.

“We believed when we took a closer look at the portfolio that a lot of things that needed to be done to rectify the situation have already done by the Canadian management of Liberty, it’s just that it hasn’t had time to be reflected in the results,” he said.

The Liberty Mutual operations covered by the deal include written premiums of more than $390 million 2003, 350,000 policies and 775 employees at 24 personal insurance sales offices in four provinces – Alberta, Ontario, Quebec and New Brunswick.

Thibault said it was too early to know if there would be any job losses.

Liberty Mutual said it sold the business recently to focus on its more profitable personal insurance operations in the United States, where it has the scale to operate more efficiently and better serve its customers.

Liberty Mutual will continue to provide commercial insurance products and services through Liberty International Underwriters Canada, which provides insurance across a variety of industry sectors including energy, manufacturing, retail and financial services.

Meloche Monnex provides home and auto insurance services to individuals, under two principal brands – Meloche Monnex, and TD Insurance Home and Auto.

The deal is expected to close in April and is expected to be slightly accretive to TD’s earnings this year.

Thanks to The Hamilton Spectator

(see headlines)

 

BODYSHOP ALERT - HIT & RUN

I would like to alert all Body shops in the Oakville , Mississauga and the western side of the GTA of a hit and run incident that took place Wednesday January 14th on the QEW near the Erin Mills/Southdown road exit.

A man driving a dark green domestic car – similar looking to a Pontiac Grand Am lost control in the left lane and came across 2 lanes of traffic hitting my wife's car in the left front wheel area. The impact took both cars into the right side guardrail. The man got out of his car, saw that my wife was moving around , then hopped back into his car and drove away. My wife's car is a write off, and she suffered minor whiplash but is back to work today. She was too shaken up to identify the vehicle or the license plate of the car that hit her.

A tow truck driver from Showcase auto body who was traveling on the south service road saw the cars after the collision but he was not able to identify the year, make or model of the hit and run vehicle. By the time he got to the scene the other car had already drove away.

Many thanks to Bill from Showcase, he really went above and beyond the call to help my wife in this situation.

There is damage to the right front headlight, right side doors, and the right rear tail light is also broken on the hit and run vehicle.

If any body shop sees a dark green domestic vehicle similar to a Pontiac Grand Am with damage to the passenger side and broken front and rear lights please call Tony McGrath @ 416 948 4554 . I will forward the info to the OPP.

Thank you

Tony McGrath

(see headlines)

 

Keystone Acquires Auto Parts Distributor in Toronto

Keystone Automotive Industries has acquired Quinte Bumper & Fender, Inc., a privately held company based in Ontario, Canada, that distributes collision replacement parts. Quinte's main hub/distribution center is in Trenton, Canada, with additional distribution centers in Toronto, Ottawa and Montreal. Quinte recorded sales of approximately $8.7 million CAD ($6.5 million USD) during its most recent fiscal year. Terms of the transaction
were not disclosed.

"This acquisition is a continuation of Keystone's strategy to expand throughout Canada. Quinte has a very good business model, an excellent distribution system that complements our existing Canadian facilities and a strong management team,'' said Charles J. Hogarty, president and chief executive officer of Keystone.

He noted that the Canadian aftermarket offers Keystone good growth potential by opening a large market not previously serviced by Keystone. Hogarty emphasized Keystone's Platinum Plus private label product line, its quality assurance programs and increasing acceptance of Keystone's products by the insurance industry, body shops and consumers as important strategic factors that support the company's expansion plans for the Canadian market.

Keystone operates 126 distribution facilities, of which 22 serve as regional hubs, located in 38 states, Canada and Mexico.

Keystone Automotive Industries, Inc. (NasdaqNM:KEYS)

(see headlines)

 

CCIF Hamilton Meeting Enjoys Record Attendance

The most recent Canadian Collision Industry Forum (CCIF) meeting held January 10 enjoyed record attendance testifying to the positive effect the forum is having in the industry. Among the record 250 participants Hamilton were collision repairers, insurers, suppliers, trainers and trade associations, as well as a large contingent of auto recyclers, keen to join the debate on the use of salvage parts and to network with industry stakeholders.

The packed meeting room at Hamilton's Sheraton Hotel was full of positive energy as Hamilton Mayor, Larry Di Ianni, showed his knowledge and interest in the collision repair industry. He encouraged CCIF in its efforts to strengthen the industry and to provide careers for young people. Indeed, the following presentation from Bev Cook, representing the Canadian Apprenticeship Forum and Skills Canada, detailed the concerted effort underway to position the skilled trades as a first career choice. An extensive promotional campaign will include advertising, media relations, strategic partnerships and support tools. The campaign will also address the need to encourage employers to take on apprentices and provide a supportive environment for them.

Through CCIF and regional trade associations, the CARS Network had carried out a study of the barriers to training and the interest level in distance learning methods. Linda Brown of the CARS Network reported that the results from several hundred completed surveys indicated an interest in televised satellite training, which would overcome the traditional barriers of availability, accessibility and work schedules.

CCIF's Education & Training Committee will continue to support the efforts of the CARS Network to facilitate both technical and business skills training for the industry.

"We're on a mission," says Mike Mario, chair of CCIF's Communications Committee. "Our goal is to develop a positive image of our industry through constant exposure of positive messages." Showing a recent upbeat local newspaper article on a collision repair shop run by a young woman, he explained the value of creating further exposure for the article in the national press and women's magazines. The next task is to find five more positive stories about collision repairers and promote them through the media.

With over 80 people joining in the Parts & Materials Committee breakout session, Larry Jefferies kept the group firmly focused on the issues concerning choice of parts. "Our role is to be a voice for the parts segment of the industry," says Jefferies, "and to present a balanced message on all issues." The strength of CCIF is that it brings all stakeholders and competitors to the table and helps them identify common goals that will benefit all stakeholders. Aftermarket and salvage parts play an important role in keeping down the cost of repairs and increasing the number of repairable vehicles. CCIF participants generated ideas and energy on how to standardize on definitions, how to identify Canada's professional recyclers and on the benefits of improved packaging and delivery methods.

Leading into the "Open Forum" session on the full day agenda, was a presentation from Henning Norup, Vice President of Information Research and Analysis at the Insurance Bureau of Canada. He explained that the IBC was interested in researching the use of non-OEM parts from a cost reduction perspective, acknowledging that work would also need to be done on understanding the issue of quality and its impact on repair costs. Norup exposed an area where the collision repair industry might be able to work with the IBC to develop a clearer understanding of accident severity costs. Whilst the trend for vehicle accident frequency is down, severity is increasing, so this is an important topic for all stakeholders. Norup painted a picture of increasing challenge for the collision repair industry, with new technology in materials like aluminum and high strength steel, in telematics and even in more down-to-earth items like windshield replacement. The positive aspect of this message was in the continuing movement of collision repair away from its traditional metal bashing image to a sophisticated, high technology business which provides interest and challenge of a new type for young people making their career choices.

CCIF Chairman, Glenn Hickey, wound up the largest ever Canadian Collision Industry Forum by congratulating all participants on their positive approach, their contributions to the ideas and actions and their willingness to work together. "It's days like this," commented Hickey, "when we can all feel good about our industry. I know that many of us will return to our workplaces on Monday with renewed energy and an idea or inspiration picked up at CCIF that will help us take one more small step in improving our own businesses."

(see headlines)

 

Boyd Group Announces Completion Of $14 Million Private Placement

The Boyd Group Income Fund announced that it has completed a $14 million ($10.7 million USD) private placement.

The Boyd Group sold 1,750,000 subscription receipts at $8.00 per subscription receipt, on a bought deal basis, to a syndicate of underwriters led by Canaccord Capital Corporation and Wellington West Capital Inc.

In December Boyd issued a statement saying that it has entered into a letter of intent to acquire an unnamed multi-location collision repair business, and was putting together up to $29 million dollars to do it ($22.1 million USD).

The net proceeds of the offering are being held in escrow pending the successful completion of the deal expected to close on or before March 31, 2004.

The Boyd Group operates 67 locations and is the largest operator of collision repair shops in Canada. In addition to its corporate locations, Boyd Group also has 11 franchise locations operating under its trade names.

(see headlines)

 

NEW HARA CONTACT INFORMATION

The HARA office has new phone numbers. We apologize for any recent inconvenience. We are eager to hear from you and help you with any problems or needs.

Our new contact information is below:

Hamilton District Autobody Repair Association (HARA)
mailing: P.O. Box 47594, Centre Mall,
Hamilton, Ontario
L8H 7S7

Office: 350 Dosco Drive, 2nd Floor
Stoney Creek, Ontario
L8E 2N5

Phone (905) 664-7888
Fax (905) 664-3340
Toll free 1-866-309-4272 (HARA)

E-mail hara@ciia.com

Best wishes,

John Norris

(see headlines)

 

“CAPPING” FOR TOW BILLS AND STORAGE

Auto Insurance Premiums also set to drop and towing fees set at $300 maximum

January 12, 2004

Ontario’s Finance Minister Greg Sorbara has introduced regulations that will address abuses in towing and damaged vehicle storage, cap fees for Designated Assessment Centres, raise standard collision deductibles to $500 and keep a Liberal government commitment to lowering the price of auto insurance premiums by 10% .

The new towing changes spell good news for collision repair centers and insurance companies who were often abused by uncontrolled prices charged by some tow companies who would not deliver the car for repair unless excessive fees were paid.

“Controls on tow pricing and storage pricing have been requested by repairers and insurers. This new regulation will reduce collision repair costs through lower shop payouts to tow operators and save insurers money that they can use to reduce auto insurance premiums”, says John Norris, Executive Director, of the Hamilton District Autobody Repair Association (HARA).

The provincial government is also planning to limit benefits for those that suffer from lower levels of whiplash injury after an accident as well as reducing expenses for assessment centres by not requiring payment by the centres for the first 50 kilometres of travel by a client for assessment or examination.

The long-awaited promise of lower premiums (by 10%) will take place says the Minister, but may not show on some polices until April 15 as insurers file new rates.

Mark Yakabuski, Ontario Vice-President of the Insurance Bureau of Canada says “Insurers are committed to filing new rates to take into account this announcement. Any savings generated by these measurers will be passed on to consumers.”

UPDATE TO READERS: The $300 cap on towing and storage pricing in southern Ontario was dropped by the government in early-March, 2004. It was believed that although the costs of towing would be “capped” by insurers, that consumers may still be exposed to continuing tow pricing abuse that would force consumers to pay for the difference in towing costs, or collision repair shops to be put in a position of being forced to pay for the towing price difference (over the $300 price cap) in order to obtain the customer’s car to do the needed repair.

Insurers would save money with a tow rate cap, regrettably those few abusive tow firms would still expect the cash now from consumers and repair shops. Consumers have come out ahead with the cap being removed. (update supplied by John Norris, HARA)

(see headlines)

 

IBC Pleased with Ontario Government Actions on Auto Insurance

TORONTO, Jan. 9 /CNW/ - Insurance Bureau of Canada (IBC) is pleased with the actions announced today by the Ontario government to reform the auto insurance system.

The government announced that it would take a number of steps to reduce insurance claims costs, including capping fees charged by Designated Assessment Centres and strengthening the protocols developed to provide timely treatment of whiplash injuries. It also announced that auto insurers will be required to file new rates by January 23rd.

"We are particularly pleased that the government will lift the legislated freeze on auto insurance rates as of January 23rd," said Mark Yakabuski, IBC's Ontario Vice-President. "Allowing the market to work freely is fundamental to restoring stability and availability in the auto insurance sector," he added. "Insurers are committed to filing new rates to take into account today's announcement. Any savings generated by these measures will be passed on to consumers," Yakabuski said.

Today's actions will be especially helpful in controlling the rising costs associated with automobile accident injuries. "Sharply escalating costs for health care and for lawsuits are the main factors that have pushed auto insurance premiums up over the past couple of years. Bringing these costs into line will help insurers give drivers a significant break in the months to come," Yakabuski said.

The industry is committed to working with the government to ensure the quick implementation of the measures announced today and to take any additional action necessary to restore health to the auto insurance sector. "With the actions announced by the government today, we can look forward to an improvement in the affordability and availability of auto insurance in Ontario. And that's good news for consumers," Yakabuski added.

Most drivers will see reductions from current approved rates in the months to come. "The exact savings will vary among drivers, depending on their driving record and other factors," said Yakabuski, "and each company will have to take into account its own financial situation in filing for new rates." Insurance Bureau of Canada is the national trade association representing private property and casualty insurers. Its member companies account for more than 90% of the non-government home, auto and business insurance in Canada.

(see headlines)

 

AIA Canada Partners with Matthew.Scott Data Marketing Solutions Inc. on Aftermarket Service Provider Market Research Project

January 9, 2003, Ottawa and Toronto, ON - The Automotive Industries Association of Canada (AIA) has selected Matthew.Scott Data Marketing Solutions Inc. as the agency of record for its Automotive Service Provider Market Research Project.

AIA recognizes that the long-term success of AIA members (wholesalers, warehouse distributors, and suppliers alike) hinges on the success of its customer base (installers). As per the AIA announcement in late September, the Association is investigating what types of services automotive service providers (installers) need to survive and thrive in the industry.

"The industry has been talking about the survival of the automotive service provider for several years,” says AIA Chair Ken Coulter. “Now its time to put some solid market research behind what are gut feelings are telling us.”

“We understand that the life blood of the aftermarket industry is at the installer level. We believe there is an opportunity to develop and enhance the consumer perception and elevate aftermarket service volumes. There are billions of dollars in unperformed automobile maintenance and this project is a solid first step in gaining a better understanding of how to tap the opportunity for installers by gaining a better understanding of installer needs”, said Ray Datt, AIA President.

The Automotive Industries Association of Canada (AIA) is the voice and resource for the automotive aftermarket industry in Canada. AIA’s mandate is to promote, educate and represent members in all areas that impact the growth and prosperity of the industry.

With 20 years of success in the North American automotive aftermarket Matthew.Scott Data Marketing Solutions has accumulated proprietary databases that are among North America’s most comprehensive and up to date source of Aftermarket Service Providers and industry information. “These types of projects will support the industry as a whole and consolidate the message and importance of maintaining your vehicles for safety, environmental and economical reasons. It will also remind the businesses in the industry to look for the opportunity because we know it does certainly does exist”, said Datt.

AIA will be an integral part of prosperous growth, continued education and industry succession plans. By initiating these types of projects and joining forces with Matthew.Scott Data Marketing Solutions, the AIA will be able to revise and communicate the capabilities, credibility and over all perception of the Aftermarket Service Provider, and ultimately, the industry as a whole.

(see headlines)

 

Auto insurance to fall 10%

But reforms won't take effect until after April 15

By Gillian Livingston
The Canadian Press

Ontario drivers will have to wait until April before they see lower auto insurance rates, and under recently passed regulations, there will be limits on some coverage to bring costs down.

Still, Finance Minister Greg Sorbara is promising that insurance premiums for Ontario drivers will fall by an average of 10 per cent because of these reforms, many of which are set to take effect on policies bought or renewed after April 15.

"We're confident that when the insurance companies have reviewed (the changes), they will -- on average and over and across the industry -- be able to file rates ... that will result in premium reductions of, on average, 10 per cent," Sorbara said yesterday.

Insurance companies have to file new rates with the government by Jan. 23.

During last October's provincial election, the Liberals promised to freeze rates if elected, which they did, and make changes so premium rates fell by 10 per cent within 90 days. However, it will take until April before the rates filed in January are through the approval process, Sorbara said.

Ontario's insurance companies were pleased that the cap on rates would be lifted, and assured consumers that premiums would go down.

"Insurers are committed to filing new rates to take into account (this) announcement. Any savings generated by these measures will be passed on to consumers," said Mark Yakabuski, Ontario vice-president for the Insurance Bureau of Canada.

"There certainly are going to be reductions for most drivers, but the exact level is going to depend on their driving record and other factors," including the financial situation of their insurance company.

The new regulations will:

* Limit tow truck and storage fees to $300, although fees in northern Ontario won't be capped.

* Cap fees for Designated Assessment Centres, which assess accident victims when there's a dispute with the insurance company.

* Change guidelines for the extent and length of care needed for the treatment of soft tissue injuries such as whiplash.

* Limit income replacement benefits and attendant care benefits for those who suffer lower levels of whiplash.

* Not require insurers to pay for the first 50 kilometres of transportation costs to and from examinations or assessments, or treatment, counselling and training sessions, except for those with catastrophic injuries.

* Increase the standard collision deductible to $500.

Critics suggested a number of these changes were put forward by the previous Conservative government in late 2002, such as curbing payouts for treatment of injuries like whiplash.

NDP Leader Howard Hampton said he doubted that Ontario drivers will see a 10 per cent cut in auto insurance premiums.

Insurance companies will make excuses to clients ... "so we can no longer insure you," he said. "They'll have to go out and find a new insurance company, and lo and behold, they'll be paying a rate that's higher than they were paying before. No one is going to see a rate reduction."

The Liberals had said they would scrap the Designated Assessment Centres, not just cap their fees.

Sorbara said that change requires legislation and must wait until the house sits again in late March. The centres will be examined along with other auto insurance reforms as part of a second package of changes to be put forward later this year, he said.

(see headlines)

 

BODYSHOP SUPPLIERS WARNED OF BREAK INS

January 9, 2004

Three Ontario companies supplying bodyshops have been hit with break-ins in recent weeks where thieves have been interested in consumables rather than expensive equipment or paint.

On Tuesday, thieves broke into a bodyshop supply firm in Ontario's Niagara Region yesterday, but didn't steal the expensive inventory.

Leaving behind the spray guns, measuring equipment and special paints, the thieves grabbed tack clothes and boxes of sandpaper and left, although not before causing expensive damage to the front door and the doorframe. This is the not the first time in recent weeks that police have responded to a body shop supplier break-in.

Two other suppliers have been hit with theft, again of sandpaper, clothesand tape.

One collision repair shop in Niagara was also hit and similar items stolen. John Norris of the Hamilton District Autobody Repair Association warns shops to be cautious when approached by someone with an offer of sandpaper, or supplies that is too good to be true.

(see headlines)



DON'T MISS THE CCIF MEETING IN HAMILTON IN JANUARY- REGISTER NOW!!

On Saturday January 10, 2004, the Canadian Collision Industry Forum comes to Hamilton, Ontario.

All those who want to run successful and profitable businesses in this industry should attend. This includes collision repairers, insurers, trainers, suppliers and all others who work in and with this industry.

Please read the brief meeting descriptions and agenda on the attached pages and help yourself and your industry by participating in national committees and discussions plus enjoy breakfast, lunch and dinner chats with industry friends from across Canada

Extra features at the January CCIF meeting:

- Presentation on the Canadian Apprenticeship Forum
- Presentation on the CARS Industry Survey on long-distance learning
- Updates on Ontario's Collision Repair Industry
- What's happening with recycled parts in Canada ?
- Insurance Industry Trends with Henning Norup, Insurance Bureau of Canada
- Breakout Group sessions for your involvement

Please use the registration form attached, complete it and fax it to the CCIF Administrator as soon as possible.

See you in Hamilton!

John Norris

Registration Form

(see headlines)

 

PAINT, BODY AND EQUIPMENT COUNCIL MEETING ON “CCIF” WEEKEND
National AIA group to also tour Motive Power lab at College

December 29, 2003

The Paint, Body and Equipment Council of the Automotive Industries Association is the national committee of coatings firms, equipment and manufacturers representatives and distributors that meets three times a year.

This year, for the first time, the PBE Council, chaired by Roland Taube of Akzo Nobel coatings, is meeting in Hamilton as a show of support and to further encourage the activities and mandate of the Canadian Collision Industry Forum (CCIF).

The Paint , Body and Equipment Council meeting, open only to members, is scheduled for the afternoon on Friday January 9, 2004 at Mohawk College in Stoney Creek, Ontario and includes a tour of the motive power training facilities.

The CCIF Hamilton meeting is the next morning and being held at the Sheraton Hamilton Hotel on King Street West in downtown Hamilton. Online registration forms are available at www.ccif.net or by calling 1-800-318-DENT (3368) for a faxed registration and agenda package.

The CCIF Hamilton meeting features committee reports, training survey updates, apprenticeship information, collision industry updates and a presentation on recycled parts. Special speaker on the Saturday is Henning Norup of the Insurance Bureau of Canada, on Insurance Industry Trends. Breakfast, luncheon and an evening reception are included.

The Automotive Industries Association of Canada (AIA) is a national trade association representing the automotive aftermarket industry. AIA is the voice and the resource for the automotive aftermarket industry in Canada. Its mandate is to promote, educate and represent members in all areas that impact the growth and prosperity of the industry. AIA represents suppliers, distributors, wholesalers, and retailers.

(see headlines)

 

INSURANCE BUREAU OF CANADA FILES SUBMISSION ON COMPETITION POLICY

IBC concerned that some proposed changes unnecessary or duplicative


December 28, 2003

The Insurance Bureau of Canada, has written to the Canadian Competition Act officials in Ottawa with their comments over the proposed Amendments to the Competition Act. The letter was sent on September 30 of this year as part of an invitation for comments in a public policy discussion.

IBC had four areas of concern with the proposed changes:

IBC felt that provisions for strengthening the civil provisions of the Act, including monetary administrative penalties and a civil cause of action including restitution in respect to deceptive marketing practices was unneeded and that the present processions in the Act were satisfactory.

The insurance association also felt that the reform of the criminal conspiracy provisions in the Act had little benefit and could be misinterpreted. IBC felt that the language use was vague and subjective and might serve to restrict pro-competitive alliances

IBC argues for the de-criminilization of the predatory pricing, promotional allowance and discriminatory pricing provisions in the proposed Act. They question the provisions being included under an “abuse of dominant influence” section of the Act and believe that the introduction of monetary penalties and civil action is a significant departure from the normal process.

The Insurance Bureau of Canada also is worried that a provision to reform the Act to allow the Commissioner to request an independent body to make inquiries into any segment of Canadian marketplace completion may be duplicative and open to abuse by political interest groups.

(see headlines)

 

FIRE PREVENTION OFFICER SUGGESTING “FIRE WATCHER”

December 28, 2003

Hamilton Fire Prevention Officer Dave Christopher has watched fires at auto body shops before.

He worries that a welding-caused fire can easily start on a car without the welder’s knowledge and recommends that a “fire watcher” also be present.

This “fire watcher” is a trained worker who will be carrying a fire extinguisher of the type required and would be on guard next to the welder to ensure that there are no flare-ups or flash fires being caused.

According to Christopher, “ Section 5.17 of the Fire Code deals with cutting and welding and gives prescriptive requirements that are to be adhered to when cutting and welding operations are carried out. While the Fire Code dos not specifically say that a fire watch is required, it is inferred within the legislation and is in fact also closely scrutinized by insurance company inspectors when underwriting policies for businesses carrying out these activities.”

(see headlines)

 

E.S.M. AUTO BODY AWARDED $200,000 IN PUNITIVE DAMAGES AGAINST INSURER

Court of Appeal fixes order of $100K costs plus original settlement

December 27, 2003

The July 1999 jury verdict of Khazzaka (operating as E.S.M. Auto Body) v. Commercial Union Assurance Company of Canada was reviewed by the Ontario Court of Appeal and the order against the insurer stands. Following an eleven-day trial, the jury allowed the respondent’s claim of $157,000 for fire damage to his auto body shop and, further, awarded $200,000 punitive damages against the insurer for its conduct in defending the action on the sole basis of arson. The trial judge subsequently fixed costs at an additional $100,000. The insurer challenged the justification for punitive damages and said the amount is, in any event, excessive. The judge did not agree and dismissed the appeal.

Mr. Khazzaka’s auto body shop is located on Highway 31 in the Village of Metcalfe and comprises two bays separated by a wall, each accommodating two vehicles. On September 6, 1997 Mr. Khazzaka was doing body work on one of the vehicles in bay number one. On his evidence he was in the process of welding a piece of metal in the area of the rear rocker panel, using a spot welder and an acetylene-oxygen torch. When he lit the torch he saw a flame inside the wheel well area of the vehicle and immediately proceeded to bay number two to obtain a fire extinguisher. When he returned to bay one there was an explosion and an extensive fire that caused burn injuries to him and largely destroyed the shop.

The Fire Chief, his staff, and the Ontario Provincial Police thoroughly investigated the incident, and no one suspected arson. It was concluded that the open flame ignited something such as a rag or fumes, that this spread to other combustibles in the area, and that the perceived explosion may have been a tire bursting in the heat. They agreed that the shop’s version of events was consistent with their findings. The insurer denied coverage. The insurer retained the services of an independent adjuster and an experienced fire investigator. The trial judge held that there had been sufficient evidence for the jury to conclude that the investigation had been conducted in bad faith.

In a summary provided by Guild, Yule and Company, the August 14, 2002 Court of Appeal judgement (Khazzaka o/a E.S.M. Auto Body v. CGU Insurance Company of Canada), the Court acknowledged the right of Insurers to investigate suspicious cases, though, this was clearly, it felt, a case in which the Insurer had crossed the line.

(see headlines)

 

BERTHA BERTRAND WINS "MOST INFLUENTIAL WOMEN AWARD FOR COLLISION REPAIR"

December 27, 2003

In a special awards dinner held in conjunction with the NACE show in Orlando, Akzo Nobel Coatings honoured five women with this special distinction.

The ceremony, held at the Citrus Club on December 4, has been held annually since 1999, highlighting the career accomplishments of women in the trade.

This year, Akzo Nobel also donated scholarships to female students across Canada and the United States to assist in both their training and updating and to encourage more females to join the collision repair industry.

Speaker at the event was Janet Guthrie, the first woman to ever compete in the Indianapolis 500 race. She had 13 years of experience on sports car race circuits before being invited to test a car for Indianapolis.

Bertha Bertrand was the only winner from Canada, and is the Co-Manager of the Collision Centre at Brian Cullen Motors in St. Catharine's, Ontario

In her fourteen years of experience at Brian Cullen's, collision sales have reached 2 million dollars a year from the $1.25 million when she started.

She is an active participant and leader in local industry organizations including I-CAR, the Hamilton District Auto body Repair Association, the Collision Industry Action Group and the Niagara College Motive Power Advisory Board.

She is personally involved in the "Help a Child Smile" organization focused on children with cancer treated at the Children's Hospital and Hamilton Health Science Corporation MUMC centre.

(see headlines)

 

 

 

 

 

 

HARA
Hamilton District Autobody Repair Association

"To represent the best interests of the industry, providing opportunities for growth for environmentally sound, profitable businesses having competent and trained professionals serving the public."

WE HAVE MOVED AGAIN (as of July 15th, 2003)

HARA's new office is:

HAMILTON DISTRICT AUTOBODY REPAIR ASSOCIATION
350 Dosco Drive
Stoney Creek, Ontario, Canada L8E 2N5
(above Pipeline Automotive Warehouse)
NEW PHONE as of Jan/ 04: (905) 664-7888
NEW FAX as of Jan/ 04: (905) 664-3340
 
The following remain the same:
Mailing address:
P.O. Box 47594, Centre Mall, Hamilton,On L8H 7S7
Toll free: 1-866-309-HARA (4272)