Dr. Pedigo Challenges AAA

Michael Pedigo, D.C., in his latest battle for consumer rights, is leading a group of eight independent candidates to challenge California State Automobile Association's (CSAA's) 83-year-old oligarchy.

Dr. Mike Pedigo who is already known for his outstanding efforts in the case of Wilk, et al., and his exemplary leadership in the International Chiropractor's Association (ICA) and numerous other chiropractic organizations, has barnstormed the Northern California in attempt to get 2.8 million AAA members to vote in a new team on the Board of Directors.

Speaking to numerous societies for the California Chiropractic Association (CCA) throughout Northern California, Dr. Pedigo has urged doctors to sacrifice their time and energy, and to appoint at least one person in their office to contact all prior and current patients who may be AAA members. As Dr. Pedigo reports, "We have a great opportunity to shift the direction of AAA on behalf of the consumers who have been virtually ignored by senior management for many years."

Recently, at the Alameda County CCA, Dr. Godfrey Nunoo, of Oakland, along with its executive committee, authorized publication of a full-page advertisement in support of the independent candidates in the Oakland Tribune, to reach a potential 100,000 readers in the Bay Area.

Upon hearing of the full-page ad in the Tribune, several other Northern California chiropractic societies responded to the challenge by raising funds to ask the question, "What is wrong with AAA?" A copy of the proxy is made available for AAA members to sign in the proxy fights in the ad. (Please see Proxy on opposite page.)

Some doctors are even encouraging their patients in the San Francisco area to attend, personally, the proxy vote on February 22, 1990, at 1:00 p.m., at the Fairmont Hotel (Grand Ballroom), located at the corner of California and Mason streets in San Francisco.

For further information, you are invited to call Shawn Steel at (916) 429-9000, Larry Murray at (415) 673-0555, or Pat Munson at (408) 983-0716.

Dr. Mike Pedigo reports that "This is a once-in-a-lifetime opportunity. We have sufficient public interest to really bring about thousands of votes that we think may effectively bring about a change of attitude by CSAA for new priorities."

Among the issues which the new Board of Directors will cover are:

1. To investigate the reasons why insurance rates by AAA have not been lowered in the last several years.
   


2. To examine AAA's high executive salaries.
   


3. To inquire as to AAA's expensive political and lobbying efforts opposing consumer rights.
   


4. To examine why AAA's service to claimants and doctor clinics is not more professional and progressive than it is.

Eight outstanding candidates for California State Automobile Association's Board of Directors are from different parts of Northern California. They are good, solid, community leaders. Not a single candidate is a trial attorney.

Richard D. Butler is an investment group president and former banker.

Don Johnson, lieutenant for the Sunnyvale Police Department, is a chiropractic patient who states, "We can and should reduce outrageous insurance premiums without sacrificing the high level of service CSAA members currently enjoy."

Ruth Rosborough-Larocca is a columnist and radio commentator from Fresno. She intends to "bring accountability back into the board-room."

Jerry Shelby, from Oroville, is a realtor and a chiropractic patient.

Carol Hehmeyer served as a former prosecutor for the San Francisco district attorney in the Consumer Fraud Unit. She states that "insurance rates are too high."

Dr. Michael Pedigo, a doctor of chiropractic, was elected as 1988 Chiropractor of the Year by the ICA: "As CSAA is a non-profit organization, we should be able to provide quality service and rates lower than other insurance companies. I want to know why we haven't, and work to change it. My years of board experience will bring a qualified consumer perspective to CSAA's board."

Charlene Schnall is a realtor from Santa Rosa and a chiropractic patient at Dr. Robert Dubin's clinic.

Bonita Stanton is an officer with the California Highway Patrol, highly decorated for police work.

This is an unusual, outstanding collection of candidates willing to sacrifice their time and energy to support a consumer-driven movement to reform AAA.

AAA's Reaction to the Proxy Challenge

AAA is not taking the proxy challenge without a fight.

Larry Murray, the attorney for the independent slate of consumer candidates, asked Judge Ira Brown, on December 13, for a preliminary injunction to require AAA to play fair in the proxy fight.

The independent committee spokesman, Murray, asked the judge to require AAA to give equal exposure to their 2.8 million members in AAA's monthly magazine, as well as all mailings directed to members during the election campaign. Also, the judge was asked to require the League of Women voters to count the ballots, that the election be delayed so that the independent committee would be allowed additional time to generate more proxies and, finally, to require AAA to pay for a mailing directed to the membership on behalf of the independent slate of candidates.

Opposing Larry Murray in court were some 12 attorneys from one of the largest law firms in San Francisco. To date, Judge Brown has not made a ruling on these requests.

In a sign of panic, AAA has now lobbied its own 2.8 million plus members to vote for their slate of candidates. Moreover, they are now requiring defense attorneys and other allies to vote for their incumbent slate to combat the consumer pressure against their established board.

Recently, there has been evidence that AAA senior management is sending out hundreds of thousands of letters to members throughout Northern California, in an attempt to preserve its control over the non-profit, stockholder-owned insurance company.

It appears that AAA is prepared to spend any amount of money to oppose a fair and free election against the consumer-driven independent slate of candidates.

The Proxy Fight: How To Change a Non-Profit Stockholder Insurance Company

In Northern California and the State of Nevada, AAA has over 2.8 million members. Those members include insureds and towing-club card holders.

Everyone has an equal vote.

This is an actual proxy (see opposite or below) that can be reproduced, circulated to friends, colleagues, former patients, and current patients.

All that is required is that the AAA member legibly sign his name and insert the membership card number.

Every member of the family can vote if they have their own individual cards.

Please note that the deadline to forward these proxies to the San Francisco headquarters, located at the law office of Larry Murray, at 1781 Union Street, San Francisco, CA 94123, is February 15, 1990. The actual election will take place on February 22, 1990, at the Fairmont Hotel (Grand Ballroom), at the corner of California and Mason street, in San Francisco.