Legal Question in Business Law in California

Insurance

We did a body repair job for a insurance company and we sumitted a supplement. The supplement check was approved and issued in a two party format. The customer now refuses to sign the supplement check and he has his repaired car. We had heard that there was a bill or code stating that supplement checks are to be issued to the shop and not in two party form.

Thanks for any help


Asked on 6/17/04, 2:04 pm

2 Answers from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Insurance

In 15 minutes or so of on-line research, I found no law prohibiting this practice. I did find one case, decided under the unfair business practices laws, declaring that a particular insurance company's decision to use a two-party check wasn't an unfair practice. I also found some law (Civil Code section 3262) to the effect that the use of a two-party check must be done in a certain way if there is a waiver and release involved affecting the parties differently. You might want to look at this section (on line) and see if it possibly applies to your situation.

Read more
Answered on 6/17/04, 3:56 pm
Robert F. Cohen Law Office of Robert F. Cohen

Re: Insurance

Send a certified letter, return receipt (keep a copy) to the insurance company explaining the situation, and ask them to reissue the check in your name only. Send along a copy of the invoice and the customer's signature on it. If it comes down to it, you can always file a small claims action against the car's owner for the balance owed.

Read more
Answered on 6/17/04, 2:35 pm


Related Questions & Answers

More Business Law questions and answers in California