Legal Question in Business Law in Maryland
Car Dealer
My question is for a friend. Someone stoled her car and her insurance was very helpful. The problem is: when the car was found, the car was sitting on just the rotors. She brought rims and tires for the car. (Not the kind or rims or tires that was originally on the car. They were more expensive)However, the dealership put new tires and rims on the car and wants to be compensated for it. My friend did not authorized the dealer to put these ''new'' rims and tires because she had brought tires and rims herself. The dealership contacted the insurance company and the insurance company is willing to pay for them, but the owner of the car feels that they (dealership) should not be compensated. The dealership cannot produce the tires or rims the owner placed on the car nor will the release the car until these rims and tires are paid for. One of the employees stated that he made a mistake and would take care of it, but his superior is overiding it. Do the dealer have the right to be compensated for these unauthorized items and hold her car? Please advise. Thanks
2 Answers from Attorneys
Re: Car Dealer
If your friend supplied the rims and tires to the dealership and they went ahead on their own and installed their own, your friend should only have to pay for the labor. Of course, if her insurance is willing to pay the dealership for the new rims and tires and it won't adversely affect her premiums or coverage, why not take advantage of getting new replacement items rather than the used ones she provided?
Re: Car Dealer
Your friend needs to find out if there was coverage for specialty equipment on the vehicle at the time of loss. If specialty equipment coverage was maintained at the time of loss then the insurance company should replace this equipment. "Like-kind coverage" may or may not provide a remedy where the equipment excessively beyond "standard equipment" and was not notified to the insurer.
If you suspect that an insurer is dealing in bad faith or has not provided coverage under the contract of insurance, contact an attorney for assistance.
Joe Holthaus
(410) 750-2567
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