Insurers Named in Illinois Aftermarket Parts Suit
Wednesday, December 15th, 1999 Auto Litigation Risk ManagementOne month after a Marion, Ill., jury awarded damages of nearly $1.2 billion in an aftermarket auto parts class-action lawsuit against State Farm Mutual Automobile Insurance Co., another aftermarket parts lawsuit was filed in Illinois, naming seven of the nation's leading automobile insurance companies, including State Farm. In Hobbs vs. State Farm, et al, the insurers are being sued for their use of aftermarket, rather than original equipment manufacturer (OEM), parts in their policyholders' auto repairs, and conspiring to support and legitimize this practice through the creation of a third-party auto parts certification association, the Certified Automotive Parts Association (CAPA). Lawyers representing the plaintiffs have named State Farm, CNA, Liberty Mutual, GEICO, Safeco, Allstate and USAA in the lawsuit, which was filed in Madison County, Ill., Circuit Court.
