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On August 18, the Illinois Supreme Court overturned a $1.06 billion class action judgment by a lower court (Avery et al. v State Farm) addressing the use of automobile collision repair parts by insurers. The case is an important victory for consumers and an important step toward a more sensible legal system.
“For consumers, the decision means more choices and more competition in the market for automobile replacement parts. Competition in the market for automobile collision parts can provide consumers with more choices about collision repair while keeping prices in check,” said Dr. Wayne T. Brough, Chief Economist for FreedomWorks. “It’s a win-win for consumers.”
“The decision also sends an important message on class action abuse,” said Dr. Brough. “Despite the fact that the class represented policyholders in different states subject to different insurance regulations that were governed by different insurance commissions, the lower court lumped all these people together. Rejecting this “class” of plaintiffs is an important precedent and should help stem the tide of frivolous lawsuits that drain our economy.”
More information on the case: