The Illinois Supreme Court decision overturning a class action lawsuit against State Farm and a $1.1 billion damage award points out defects in the law governing class actions, insurance industry groups said.
A spokesman for State Farm said the company was "very pleased that the Illinois Supreme Court found that State Farm's actions were correct" in the case of Avery v. State Farm, in which policyholders sued the insurer for using aftermarket parts for collision repairs, claiming they were substandard and unsafe.
Insurance organizations said the decision had wider ramifications for other insurers. The Avery case trial court certified it as a class action despite arguments from State Farm's attorneys that it failed to qualify because of differences in policies and consumer protection laws from state to state.
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