Tuesday, September 13, 2005

  Illinois Supreme Court Reverses Decision, State Farm, Insurers Win Reprieve

Avery vs. State Farm is one of the most famous automotive lawsuits ever filed. The class action suit essentially claims that State Farm encouraged the use of third party "aftermarket" parts when repairing vehicles damaged in collisions.

After the plaintiffs won a stunning $1.2 billion verdict by claiming the parts were less safe than auto manufacturer's official parts, the company and industry associations swung into action. On August 18, their hard work carried the day when the Illinois Supreme Court reversed the lower court's decision. The Supreme Court not only found that the plaintiffs had failed to adequately show damages, but the Court also ruled 6-0 that the case should not have been certified as a class action.

The original $1.2 billion verdict was reduced once by a higher court after the initial verdict, but the reversal meant the end of a journey of more than six years for the participants. While some observers believe the case could signal the beginning of tort reform, consumer advocates were outraged.

"You can hold a typical aftermarket part in your hand and compare its weight and shape to the manufacturer's original part," said Consumer Help Web President Joan Bounacos. "The aftermarket part made by an independent third party is usually lighter and doesn't fit as well. State Farm's assertion that they have saved consumers money is moot if they have also agreed to put non-standard parts on the vehicle. I am hopeful that this case will again have its day in court and be heard on its merits."

"Only one vote separated the key consumer issue from being a deadlock," Bounacos said. "That is too close for future consumers to ignore."

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