A national class-action lawsuit that stretched back to 1997 came to an end recently when the U.S. Supreme Court denied the petition of Michael E. Avery, et al in their suit against State Farm Mutual Automobile Insurance Co. The lawsuit sought to hold the company liable for using auto repair parts made by someone other than the original manufacturer in car repairs.
Though the Court does not offer explanations as to why it does not hear certain cases, the refusal to review lends support to the Illinois Supreme Court verdict not to award Avery the $1.2 billion he initially won in an Illinois district court.
"I think it's a decision that was appropriately decided and I think it will have a chilling effect on class actions brought against insurance companies for a host of business practices, not just aftermarket parts," said Michael Nelson, partner at the law firm of Nelson Levine de Luca & Horst. "I think it's important to understand that this decision was not just an appeal by State Farm against a verdict it didn't like."
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