A
Lawyers for State Farm policyholders complaining about after-market parts had asked for more than $ 5.4 billion in damages in a class action. The suit accused the State Farm Mutual Automobile Insurance Co. of breaching its contract with policyholders to restore their cars to their pre-accident conditions. The lawsuit combined the potential claims of $ 4.7 million current and former State Farm policyholders. Plaintiffs sought $1.4 billion on the breach of contract and about $ 4 billion on the other counts.
B
At issue before the jury was use of parts such as door panels, hoods and fenders that were modeled on original parts produced by or for automakers but made without use of original specifications. About 15 percent of all crash-repair parts used last year were after-market replacements, according to insurance and auto-body repair groups. Critics claimed such parts failed to provide the same fit corrosion protection and, in some cases, safety as more expensive parts made for automakers.
C
State Farm said the use of the parts did not affect driver's safety and helped hold down premiums. During trial, State Farm lawyers said the use of after-market parts saved policyholders more than $ 233 million in premiums in 1998. Meanwhile, the company's spokesman said the company wouldn't immediately change its policy, but he added that was not to say it wouldn't review its policy at some time.
D
A decision on parts of the suit was still pending while the jury has ordered State Farm to pay $ 456 million for allegedly cheating customers by ordering body shops to use substandard repair parts. Industry analysts and some consumer advocates have said a large verdict against State Farm could reduce the use of after-market parts in the auto-repair business and drive up the price of crash repairs. The verdict was also considered a great victory for policyholders and the body-shop industry as a whole plaintiff.