A trial questioning the state's insurer-owned repair shop law is being heard in the United States District Court for the Northern District of Texas, Dallas Division. In Allstate Insurance Company, Sterling Collision Centers Inc. v. Greg Abbott, Texas Attorney General; Carol Keeton Strayhorn, Comptroller of Public Accounts, the insurer and its subsidiary allege that the law unfairly restricts their ability to do business within the state.

In early 3003, the Texas legislation approved a bill that banned insurance companies from owning auto body repair facilities and required companies that had ownership interests to divest within two years. In January of the following year, Allstate Insurance Company and Sterling Autobody Centers' were granted an injunction against enforcement of several provisions of the bill, which the state failed to appeal.

Allstate and Sterling subsequently filed suit to determine the constitutionality of the law, alleging that it violated both their First Amendment rights of free speech and the Commerce Clause by unduly interfering with interstate commerce. Allstate purchased the Sterling chain of auto body repair facilities in 2001.