Atlanta, GA asked in Contracts, Products Liability and Insurance Bad Faith for Tennessee

Q: Hi, can an extended car warranty insurance (Fidelity etc.) ask the repair shop for outsourced parts invoices?

The extended warranty company approved an itemized parts list & labor for a truck repair job. After the repair, the shop sent them an invoice with an itemized parts list & labor exactly as pre-approved (to the cent). The extended warranty company now wants all invoices for the parts as ordered and paid for by the repair shop from third-party suppliers, before they pay. Can they legally do that?

The repair shop has no contract with the warranty company, only I do.

2 Lawyer Answers

A: Yes, there is no law prohibiting the extended warrant company from requesting those invoices.

There is also no law requiring the repair shop to provide them.

1 user found this answer helpful

Anthony M. Avery
Anthony M. Avery pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
  • Insurance Claims Lawyer
  • Knoxville, TN
  • Licensed in Tennessee

A: Read your contract verbatim. Warranty co. can probably demand all parts invoices prior to payment. Whether or not they get them is probably up to the suppliers with the invoices. If they do not pay, you are left with suing for breach of contract, but the contract probably protects them.

1 user found this answer helpful

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