Nearly four years ago, the Illinois Supreme Court dealt what many perceived to be a fatal blow to a wave of putative class actions concerning automobile insurers' specification of non-original equipment manufacturer parts in the repair of motor vehicles. In Avery v. State Farm Mut. Auto. Ins. Co., 835 N.E.2d 801 (Ill. 2005), the Illinois Supreme Court overturned a verdict of more than $1.1 billion in a national class action challenging State Farm's practice of specifying non-OEM parts that were purportedly “categorically inferior” to OEM parts. In vacating this verdict, the Illinois Supreme Court held that the mere specification of non-OEM parts in a repair estimate was insufficient to establish liability for breach of a contractual promise to use “like kind and quality” parts, absent evidence that non-OEM parts were actually used in the repair of the vehicle, and that such parts failed to restore the vehicle to its pre-loss condition. The court further noted that the determination of these issues would require an individual analysis of each vehicle, making class certification entirely impracticable.
At the time it was released, the Avery opinion was widely perceived to be an influential decision that would lead other courts to reject similar efforts to certify class actions pertaining to the use of non-OEM parts. However, a recent decision by a Missouri appellate court demonstrates that acceptance of Avery in other jurisdictions may not be as widespread as first thought.
Case Review
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.