In a huge victory for the property-casualty insurance industry, the Illinois Supreme Court today threw out a $1.05 billion judgment against State Farm in a class-action lawsuit that accused the insurer of using unsafe replacement parts to repair customers' vehicles.
The American Insurance Association called the decision "a win for all consumers because it will foster price competition in automotive repair costs."
David Snyder, AIA vice president and assistant general counsel, said the ruling means that, under Illinois law, use of replacement parts of like kind and quality as those supplied by the original manufacturer is recognized by the insurance code and not categorically prohibited.
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