Leif's

Geico is suing Leif's Auto Collision Centers for defamation and for interfering with its ability to successfully run its business. Last September, Leif's operated four locations. Now, according to its website, it operates two.

(Doug Beghtel/The Oregonian)

Insurance giant Geico is asking a federal judge to free it from having to do business with a Tigard-based autobody shop, alleging in a lawsuit that continuing to do so puts its employees' safety at risk - in violation of Oregon law.

The insurer contends that Leif's Auto Collision Centers and owner Leif Hansen use intimidation, delays and other abusive tactics to keep adjusters from inspecting vehicles, according to a lawsuit filed Tuesday in U.S. District Court in Portland. The suit also alleges that Leif's misleads customers about repair delays, blaming them on Geico.

Under Oregon law, insurers cannot prohibit clients from choosing a particular autobody shop. Geico is asking for an exemption on the basis that state law also requires companies to provide their workers with safe and healthy places of employment.

The Chevy Chase, Maryland-based company is seeking damages for lost profits, harm to its reputation and excess labor costs. It also is requesting a jury trial.

An attorney for Leif's did not immediately respond Wednesday to calls and emails from The Oregonian/OregonLive. The office was closed due to the snowstorm. A separate message left for management at Leif's has not yet been returned.

The suit alleges that Hansen and other Leif's employees routinely yell at adjusters and "aggressively interrogate" them about their personal lives. They also regularly tell adjusters, "with the purposes of instilling fear in the adjusters, that they know how to 'find people.'"

The autobody shop's employees "routinely carry around knives and talk about guns," the suit says, and "at least one Leif's employee has talked about 'killing people.'"

Geico also contends that its adjusters regularly have to wait for long periods - sometimes for hours - before being allowed to inspect a vehicle. The autobody shop also routinely forces adjusters "to wander around Leif's premises, which are approximately five acres in size, to find the cars the adjusters need to inspect.

"Defendants refuse to tell the adjusters where the cars are located among the hundreds of cars that may be on the premises at any given time," the suit says.

The lawsuit also alleges that Leif's:

Routinely refuses to negotiate cost repair estimates. "When some adjusters have attempted to negotiate, Defendants routinely throw adjusters off the premises."

Holds vehicles "hostage" and refuses to release cars until Geico "agrees to pay egregious estimates for the work."

Falsely suggests to customers that Geico is refusing to pay for repairs, "when in fact Geico has only refused to pay for excessive time to repair vehicles or unnecessary repairs."

Intentionally delays repair times for Geico clients and claimants, and that "such delays have on occasion lasted for weeks at a time."

Geico is a wholly owned subsidiary of Berkshire Hathaway and bills itself as the nation's second-largest private passenger auto insurance company. The company lists $32 billion in assets and says it insures more than 23 million vehicles.

Leif's is known for radio ads touting its independence from insurance companies. It's no stranger to controversy or litigation: Hansen and his company have been involved in dozens of lawsuits and small claims over the years. In many cases, Hansen was one suing.

For instance, in 2004, he sued Geico for defamation and for interfering with the ability to successfully operate his business - almost exactly what Geico is now suing him for. That lawsuit was settled.

Last year, Leif's sued the Better Business Bureau after it gave the company an 'F' rating. Though the BBB recorded 57 complaints in three years, Leif's said the grade was unfair and a punishment for refusing to pay dues to the bureau. That case is still ongoing.

Dozens of complaints against Leif's have also been filed with the Oregon Department of Justice over the years. Several alleged that repairs took much longer than expected, were not fully covered by their insurance or were unsatisfactory. Customers also repeatedly complained that their vehicles had been held hostage, and that Leif's employees had lied to them about the status of their repairs.

The DOJ last year declined to say whether it was investigating Leif's.

Leif's operated four locations in September, but its website now lists only one in Tigard and one in Northeast Portland.

-- Anna Marum

amarum@oregonian.com

503-294-5911

@annamarum