Independent Automotive Professionals Association “Leaders in Automotive Service”

IN THISISSUE President’s Message John Hurley Mystery Shopping As A

Path To Excellence

MESOTHELIOMA-AN IMPORTANT WORD TO REMEMBER

by Phil Unander

One of the common definitions of Mesothelioma is “a malignant tumor of the lung or abdominal cavity often associated with exposure to asbestos dust.” The reason for the English lesson on expanding your vocabulary is simple. This is a word that may be coming to visit you soon. Two months ago we were served with papers notifying us that Larry’s Auto

Parts was being sued. Many of us have been the recipient of such papers for various reasons through the years and it tends to get your immediate attention. Most of my prior experiences dealing with lawsuits have had me as the plaintiff, or the one doing the suing. The few times I have been sued have either been scams or issues of no consequence which were easily dismissed.

This time we are being sued by a former retail customer that has terminal Mesothelioma. His grounds for naming us in this lawsuit are simply that he has been a customer in our business since the late 70’s and has purchased from us products that contained asbestos. My initial reading of this notification kind of left me in disbelief and shock. As my wife Jackie and I re-read the suit, we went from humorous disbelief to anger and then to outrage that someone would even consider holding us in any way responsible for this person’s illness. We immediately contacted our IAPA attorney (coincidentally our daughter Robin Unander).

Robin, as most attorneys will do, tried to calm us down until she could look over the lawsuit and evaluate the threat potential. She did, and while she was optimistic, she recognized the seriousness of this and warned us to not take this lightly. The plaintiff (the person suing us) is a man in his 70’s who has worked most of his adult life in the construction business. He is a lifetime smoker. He

M A R C H 2 0 1 3

IAPA President’s Message

Wednesday, March 20th • John Hurley

Retirement Roast Mulligan’s 7pm $20 IAPA Santa Barbara General Meetings are on the third Wednesday of each month at Mulligan’s at 6:45 pm.

Meeting and dinner $20.

IAPA Meetings

also worked on his own cars. In the lawsuit, he also names a local lumber company that like us sold products, several local contractors that he worked for, and several large corporations that were manufacturing the products. He is going thru depositions now, which are question and answer sessions under oath between him, his attorneys and any defendants (like us) because he is not expected to live long enough for this case to go to trial. During one of these depositions he testified that he was a customer of Larry’s Auto Parts in the 70’s and 80’s and during that time purchased engine gaskets for his 1967 Mustang. The gaskets contained asbestos and he remembers scrapping off the old gasket material and breathing the dust created. That’s it. That is his grounds for naming us in this lawsuit. That is our possible contribution to his current terminal condition.

Looking for help in fighting this case, I contacted Fel Pro, which was our gasket supplier in the 80’s. They forwarded me to their parent company Federal Mogul Corporation. When I spoke to their legal department, I was informed that they have been in some form of bankruptcy protection since 2001 because of; you guessed it, Mesothelioma lawsuits. Their companies have paid out over 500,000 claims and now are protected (somehow??) from damages arising from Mesothelioma. Any new lawsuits are simply discharged. Their attorney told me that most of the big corporations have had to do this to survive, and that because of

Liability Insurance

this, the new cases are now coming down to the sales level (that’s us) in the attorney’s hunt for money. The plaintiff’s attorneys of course want to attack our insurance policy for damages but there might be my problem. We of course were insured back then, but who saves insurance records for 25+ years? Who would think that you would need to? We didn’t. Our insurance agent at the time is still alive but pretty old and he has no records that old. When Robin informed the plaintiff’s attorneys that we were having a problem producing insurance records, they apologized and stressed that their intention was to collect damages from deep pockets like insurance companies and not to make small businesses themselves liable. Just when I am thinking that maybe they have a heart after all (yeah right!) the plaintiff’s attorney asks Robin if we could pay $10,000 as a nuisance amount and be released from the claim. Wow! Such a Decision. Pay $10,000 or try and fight it on its merits, almost certainly incurring more than that in expenses and then face the risk of losing and having to pay even more.

I started writing this in early February and since then we have thankfully found insurance coverage. It took some wrangling with the insurance carrier but they finally caved in and accepted liability for handling the claim. I do not know how much they will fight this or simply pay a nuisance fee as the Plaintiff’s side probably wants.

The message here is get prepared. If you have been in business for 20+ years, you could be a target for an attorney. It could come from a customer that may have been exposed to brake dust in your shop, or an employee (former or current) that was exposed to all kinds of things. Get your insurance stuff ready, either business or Workman’s Comp for the past several years. Go back as far as you can because you probably have had different insurance carriers and if named in a suit, you have to find your carrier from the time period that the alleged “exposure” occurred. If you need an attorney to answer the suit or negotiate (lean on) your insurance carrier, Robin is now well versed in this area of law. This potential problem is not going away and will only continue to get worse.

March 2013 2

Hi All-

It is difficult to believe that we are already a third of the way through the year already. First, I would like to welcome a or re-acquaint a couple of people to our association. Andy and Diane Motter, Advanced Automotive of Santa Maria have rejoined and Matt Thomas of Thomas Towing as well. This month, as we give John Hurley some roasting we want to also

welcome the new owner of John Hurley Automotive, John McCausky (who also won last month’s attendance drawing!).

I would also like to thank Mitch Schneider once again for driving up from Simi Valley to be our speaker. While buying American parts is not necessarily a new concept it is certainly one that needs to be back on the forefront. It has had an interesting response from customers and to be honest suppliers in our shop.

I hope all of you have been paying attention to the work being done by Jon McConnel and Clark Volmar with the Government Affairs issues. Between brake jobs, fluid exchanges, new cite and fine rules and impending employment law changes life in auto repair will be forever different.

Phil’s message this month also highlights the importance of making sure your business is properly insured. The IAPA really does have an exceptional insurance program and it would be nice if more of the membership would at least take the time to look into it. I guarantee it is worth your while.

If for no other reason to come to the meeting this month, come for the dessert! We are have a spectacular cake made by world famous Christine Dahl for John Hurley’s Roast!

Thanks! And always be prosperous!Nikki

Nikki Ayers

March 2013 3

ROASTJohn Hurly

It all started in Wilmington Delaware, at a very young age, we loaded up the family wagon and moved to Buffalo, New York. Not liking the snow or the cool weather, we decided another family road trip was in order. So it was off to California, landing in Palm Springs, before

settling down in beautiful Santa Barbara County, which I proudly call home.

During my high school years, I spent all of my spare time helping friends with their cars, so I guess that is how the automotive industry got in my blood. Right after I finished high school, I took a job with Jim Waller at the Red Horse Mobil Station in the Magnolia Center. After the Red Horse, I spent several years at Holzer/Bianchi Chevron, which turned into Bob Holzer Chevron. After sometime, Bob purchased Eddie’s Wheel Alignment, and I was involved with opening Bob Holzer Automotive as well as Bob Holzer towing. After a total of 9 years, it was time for me to open my own shop, so in 1982 at the end of March, I opened John Hurley Automotive.

In the beginning I was the owner as well as the only technician, working long hours and even longer weeks. I have some great friends that were always there to lend a hand. I believe that my success is because of their help and

encouragement. Just like in any business I have had my shares of ups and downs, and also meet some wonderful customers and new friends. In the last 30 years, I have been truly blessed to be able to spend my time working in a field that I am completely passionate about. In the beginning I was the owner as well as the only technician, working long hours and even longer weeks. I have some great friends that were always there to lend a hand. I believe that my success is because of their help and encouragement. Just like in any business I have had my shares of ups and downs, and also meet some wonderful customers and new friends. In the last 30 years, I have been truly blessed to be able to spend my time working in a field that I am completely passionate about.

My business and my work ethics never got in the way of my family and friends. I was always able to find some spare time for fun. If you ever had to chance to see me when I was not at the shop, I might have been driving around the track in a Go Kart, heading out of town to drive a Super Comp dragster or heading to a lake for some water skiing. If it has wheels & pistons, I was all over it. That still holds true today. Retirement is allowing me to spend time between the numerous car shows that I am involved with and my passion for Hot Rods. Any day you could find me out in the garage tinkering around working on some old car.

BLOW YOUR MOTOR?

BETTER HIRE A PROFESSIONAL!

Wednesday, March 20

March 2013 4

by Brian Canning

Mystery Shopping as a Path to Excellence

I have not met an Owner, a Service Manager or a staff member in a shop anywhere in the country who looks at Mystery Shopping with excitement or enthusiasm. There is no doubt that from everybody’s perspective, Mystery Shopping just sucks but there is no better tool to gauge customer experience and no better way to do an assessment of where you and your staff are right now. I would warn you

up front that taking a close look at your staff and operation like you will in using a Mystery Shopper is not for the faint of heart and you need to check your ego at the door. So many of us are blind to what our customers are experiencing that it can be a very humbling and frustrating experience and one that can have huge implications for your business. The problem is that most of us have set ideas on what is going on behind our counters and on our phones and it can be very shocking to discover that despite our having an explicit policy and procedure, our service advisors and our technicians and even our Service managers are putting their own slant and flavor to it all and you might just have trouble recognizing what had started out as your bulletproof vision. No matter what you need to approach the use of a Mystery Shopper as a learning exercise, for both you and your staff and be prepared to be shocked by what all of this will uncover.As I have commented many times, you can do a Google search for consumer complaints and it is near certain that automotive repair will come out somewhere near the top of that dreaded list. The use of a Mystery Shopper is not going to solve all of the world’s problems or even those the automotive world but it will give you a very clear insight into what your customers are experiencing and very clear actions that will go a long way toward improving what that experience is for them and ultimately happy and satisfied customers are what it is all about. Happy customers drive profits, stabilize car count and are the best marketing you could ever do. On the other hand, unhappy customers are a cancer on your business and will do more to drive you out of business than any other factor. The use of a Mystery Shopper gives you a true picture of where your customer service efforts are today and a very clear path of where you need to go from here.Though there are any number of companies that are happy and thrilled to provide the service, I might suggest a neighbor or relative. Maybe offer to do a free oil change in exchange for their participation and feedback. It is incredibly important that you coach them on what they are there for, what services they are inquiring about and what things they need to pay attention to. This is not an effort to bend the conversation but it is an effort to get something useful out of what occurs. How were they greeted? Did the person

behind the counter seem helpful or walk out to their car to get the mileage? Were service options discussed and did the service advisor talk about needed services or mileage driven maintenance services. A Mystery Shopper needs to be believable but also needs to be observant and know what to expect. Equally important would be your being ready and prepared to debrief them as soon as is practical after they have left your shop. If there is to be learning going on in the aftermath of this, it is incredibly important that we speak to specific instances. If our Service Advisor was unfriendly, he was unfriendly and we need to address that. If we neglected to inspect the customers car or make appropriate recommendations for service, we need to be able to specifically point to that. As an Owner or Service manager, there will be a great temptation to get angry and fire somebody but in the big picture this needs to be a learning experience. Our people are going to be defensive and we are going to be embarrassed and upset but learning to do a better job is the priority here. This is a critical moment and if we handle it right, our staff members, our customers and our business will benefit. If we handle it wrong we lose people and our customers are no better off.Allot of the Shop Owners and Service Managers I have known over the years love to brag about how wonderful their shops are. Many of them are models on what a shop should be, with great emphasis on customer service and efforts toward a great customer experience. These shops are in the decided minority.If I were to walk into your shop today what would my experience be? If you are not sure I might suggest that Mystery Shopper. Even if you are sure, I might have you think about verifying what is going on at your counter and on your phones. It is much too late when you have lost a great customer through inattention.

March 2013 5

March 2013 6

Loss Prevention By ZURICH Loss Prevention By ZURICH

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If your business “guarantees” used cars, or

advertises a “100 point inspection,” you should

know as much as possible about the vehicle

being sold. Here are some additional suggestions

to protect your business and assets against less

obvious exposures:

• Use a title search company to verify the

vehicle’s history, including:

- mileage

- salvage title

- unusual usage - police, taxi or

emergency vehicle.

• Require the customer to complete a

“Customer title disclosure and trade-in

certifi cation” or “Sellers disclosure” form.

• Thoroughly inspect the vehicle and look

for evidence of odometer tampering,

replacement or rollback.

• Appraisers must be diligent in evaluating

trade-ins, and determining prior damage.

• Conduct a comprehensive safety inspection

of all trade-in vehicles to include:

- brakes

- air bags

- exhaust system

- steering & suspension systems

- other critical components

Don’t forget those subcontractors your

business uses to modify new and used vehicles.

Customizing vans and pick-up trucks, installing

stereo systems, alarm systems or any other

electrical devices are not a problem until

something happens. If the customer’s car or

house catches fi re, they will come back to talk

with your business fi rst. If the subcontractor isn’t

properly insured, guess who’s responsible? Here

are more tips to help protect your business when

choosing business partners:

• Use subcontractors/vendors with extensive

experience (years in business) in their fi eld

and a good track record.

• Require certifi cates of insurance for workers’

compensation, auto, general liability and

product liability coverage.

• Policy limits for subcontractors and vendors

should be similar to your own.

• Your business should be listed as an

additional insured on subcontractors’

insurance policies.

Dealerships and service and repair businesses are

not immune to product liability and completed

operations claims. These losses can ruin a

business quickly with a huge legal judgement,

or more slowly with a bad reputation. If you’d

like more help evaluating this business exposure,

or if you have any additional questions or

comments, contact your local Zurich account

executive or contact our Risk Engineering

Department at 800-821-7803.

This Loss Prevention Bulletin was compiled from

sources believed to be reliable for informational

purposes only. No information contained

herein is intended to constitute legal advice

and accordingly, you should consult your own

qualifi ed legal counsel to address your particular

circumstances and needs. Zurich is not providing

legal advice and assumes no liability concerning

the information set forth in this bulletin.

Independent Automotive Professionals Association

Santa Barbara Chapter PresidentPhil Unander .....................................................(805) 964-3545Santa Barbara Chapter Vice PresidentManual Escobar ................................................(805) 965-1540Santa Barbara Chapter SecretaryGrant Lee ..........................................................(805) 966-3649Santa Barbara Chapter TreasurerSteve Bowman ..................................................(805) 965-5051Santa Barbara Membership ChairmanGrant Lee ..........................................................(805) 966-3649Santa Barbara Chapter Board MemberJon McConnel ..................................................(805) 969-1357Santa Barbara Chapter Board MemberRon Cooper .......................................................(805) 730-0084Santa Barbara Chapter Board MemberJohn Hurley .......................................................(805) 962-2404Santa Barbara Chapter Board MemberHenry Hinck ......................................................(805) 962-8015Santa Barbara Chapter Past PresidentHunter Self ........................................................(805) 969-4147Central Coast ContactGeoff Lyons.......................................................(805) 238-0477Newsletter / Webwww.groupprofessionals.com ...........................(310) 320-9575Santa Barbara Chapter EducationBob Stockero ........................................ (805) 965-0581-X2836IAPA Chairman of the BoardClark Volmar .....................................................(805) 966-3649IAPA AttorneyRobin Unander ..................................................(805) 962-5949IAPA Merchant Services - AxiaR. Damon Perez ................................................(888) 324-2858 IAPA Government AffairsJon McConnel ...................................................(805) 969-1357Nikki Ayers .......................................................(805) 845-4242

Independent Automotive Professionals Association Disclaimer

Independent Automotive Professionals Association, its chapters, officers, board members, employees, members, and affiliates in no way warrant the quality, competency, or merchantability of any goods or services advertised in this publication. In connection with this disclaimer, the IAPA in no way warrants or insures the goods or services described above and each and every individual and entity contracting with these manufactures shall do so at their own risk. Furthermore, individuals utilizing these services are forewarned that the IAPA has conducted no investigation into any representations made in any advertising, literature, or ad distributed by the advertisers in this or any other publication. Additionally, please be advised that the opinions and comments expressed by the contributors to this publication are those of the contributors alone and do not necessarily reflect the opinions of the Independent Automotive Professionals Association, its officers, directors, employees, other contributors, or membersFebruary 2012 “Leaders in Automotive Service” Page 7

Independent Automotive Professionals Association

Santa Barbara Chapter PresidentPhil Unander .....................................................(805) 964-3545Santa Barbara Chapter Vice PresidentManual Escobar ................................................(805) 965-1540Santa Barbara Chapter SecretaryTim Kitt.............................................................(805) 962-6633Santa Barbara Chapter TreasurerSteve Bowman ..................................................(805) 965-5051Santa Barbara Membership ChairmanGrant Lee ..........................................................(805) 966-3649Santa Barbara Chapter Board MemberJon McConnel ..................................................(805) 969-1357Santa Barbara Chapter Board MemberRon Cooper .......................................................(805) 730-0084Santa Barbara Chapter Board MemberJohn Hurley.......................................................(805) 962-2404Santa Barbara Chapter Board MemberHenry Hinck......................................................(805) 962-8015Santa Barbara Chapter Past PresidentHunter Self ........................................................(805) 969-4147Central Coast ContactGeoff Lyons.......................................................(805) 238-0477Newsletter / WebMike Pickett ...... mpickett@groupprofessionals.com 968-4680Santa Barbara Chapter EducationBob Stockero........................................ (805) 965-0581-X2836IAPA Chairman of the BoardClark Volmar .....................................................(805) 966-3649IAPA AttorneyRobin Unander ..................................................(805) 962-5949IAPA Merchant Services - AxiaR. Damon Perez ................................................(888) 324-2858 IAPA Government AffairsJon McConnel ...................................................(805) 969-1357Nikki Ayers .......................................................(805) 845-4242

Independent Automotive Professionals Association

(805) 642-1157Andre BarbeauOwner Operator

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Family Business Mistakes By Gary McCoy, Fairway Communications(http://workshop.search-autoparts.com/_Family-Business-Mistakes/blog/5621205/31710.html?cid=95879)In a recent presentation to the Spring Manufacturers Association (SMI), Joe Murray of First Financial Group reviewed six mistakes that can most commonly prove disastrous for family businesses. He provided attendees with a risk barometer to help assess the health of their business.Murray said the most common mistakes that family business owners make are contained in these statements:1. "I know what my business is worth."2. "I'm too busy running the company."3. "That'll never happen to me."4. "There's plenty of time for that."

5. "My business is my retirement."6. "You can't beat Uncle Sam."

Murray said every family business needs to have a succession plan and a team of advisors in place. Why? So there is a way to transition the business to the next generation. He said this is especially important because the odds of a family business surviving to the second or third generation are difficult without this.

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Independent Automotive Professionals Association “Leaders in Automotive