The Fate of Aftermarket Parts
Aftermarket parts have gone a long way since its introduction to
the riding world. In fact there are a lot of developments and
innovations which resulted to the boost of its sales.
The result of its improvement and upgrading was the powerful
influence that drove riders and drivers alike to purchase and
use it in their bikes. However, one thing startled these
purchasers. It is all about the claims against insurance
companies. Another drawback though, is the spread out of phony
and scrupulous companies.
Recently, a significant Illinois suit sprang. This suit is
called the Avery lawsuit. It is a class suit which seeks to
claim against a State Farm. Plaintiffs are suing for breach of
contract and violations of the Illinois Consumer Fraud and
Deceptive Business Practices Act (CFA). They claim that State
Farm did not honor its insurance contract to pay for parts of
"like kind and quality" to restore the insured's vehicle to
"pre-loss condition". The insureds are complaining that State
Farm repaired their vehicles using a substandard replacement
crash parts instead of original equipment manufacture (OEM)
parts and positively misrepresented the quality of these
replacement parts. They allege that said deception is made in
order to save money at the insureds expense.
During trial, plaintiffs presented expert testimonies to affirm
that aftermarket parts have been used. Said experts testified
according to the parts appearance, fit, quality, function,
durability and performance. According to the plaintiffs, it was
not only the quality that is unsatisfactory but the promise of
State Farm to replace the non-OEM part.
Also, it was made known in the trial that State Farm recommends
the use of aftermarket parts in their repair. The insurer's
adjustors use a computer system programmed to select the
available and least expensive aftermarket part. It was also made
known that State Farm's employees, executives, associates and
‘special customers' were exempted from these practice and
their vehicles are repaired with OEM and not aftermarket parts.
The jury awarded almost $500,000 million to indemnify the
insured class. In addition, the judge ordered State Farm to
disgorge $130 million in savings realized by mandating the use
of non-OEM parts and awarded plaintiffs $600 million in punitive
damages.
On appeal, however, the Court reversed the award to disgorge the
$130 million in savings and upheld the remainder of the
decision.
This decision has its stigma. It will definitely affect the
aftermarket industry. It is an influencing factor that can
redound to aftermarket parts boom or downfall.