State Farm Loses Replacement Parts Case

State Farm Loses Replacement Parts Case

MARION, IL, Oct. 4, 1999 -- State Farm policyholders won $456 million in damages in a class action suit that accused the company of forcing body shops to use substandard repair parts.

State Farm Insurance

• Payback: State Farm Writes Off Mississippi
• Judge Nixes State Farm Katrina Settlement
• Judge Rules Against State Farm in Katrina Case
• Gulf Coast Homeowners File Class Action against State Farm
• Sen. Trent Lott Sues State Farm over Katrina Damage
• Pennsylvania Suit Challenges State Farm Salvage Title Deal
• State Farm's Wrecked Car Owners Feeling Slighted
• State Farm Pays $40 Million to Settle "Branded" Car Title Issue • Illinois Supreme Court Overturns $1 Billion State Farm Judgment
• State Farm Loses Replacement Parts Case
---
Complaints
•Automobile Policies
•Auto Theft
•Underinsured Motorists
•Homeowners Policies

Lawyers for the policyholders said the after-market parts did not provide the same fit and finish quality as original manufacturer parts. They accused State Farm, the nation's largest auto insurer, of breaching its contract with policyholders by failing to restore damaged cars to their pre-accident condition.

The suit had sought damages of $5.4 billion but attorneys said the reduced verdict was still a "great victory for policyholders and the body-shop industry."

State Farm officials said they would appeal. They argued during trial that the cheaper parts saved policyholders money.

Back to the top | News

Small Claims Guide \| Class Actions \| Lemon Law \| FAQ \| Resources \| Newsletters \| Spanish
Automotive Education Electronics Family Finance Health Homeowners Shopping Travel