# Groups Say Parts Suit Is Barred 

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A combine of industry trade groups is making a legal argument that a class action over insurers' use of generic parts to repair customers' auto damage is impermissible under the federal law giving states the power to regulate insurance.

The insurance organizations, who said "billions" of dollars are at stake, voiced their contentions in a friend-of-court brief filed with the 11th U.S. Circuit Court of Appeals in Atlanta seeking to overturn a ruling by a U.S. District Court for the Northern District of Florida in the case of Gilchrist, et al. v. State Farm Mutual Automobile Insurance Co., et al.

In November 2002, the Florida court certified a countrywide class of auto insurance policyholders who claim that Allstate, GEICO, Nationwide and State Farm conspired to violate antitrust laws by requiring the use of non-original equipment manufacturer parts to repair their damaged vehicles.

Sources:
- National Underwriter (http://www.nationalunderwriter.com/pandc/hotnews/viewPC.asp?article=7_21_03_15_9717.xml&src=5)