Hilsoft Notifications: State Farm Auto Parts Litigation.

Court Ordered Notice


IN THE CIRCUIT COURT FOR THE FIRST JUDICIAL CIRCUIT
WILLIAMSON COUNTY, ILLINOIS

TAMMY SNIDER and MICHAEL AVERY, On Behalf of Themselves and All Others Similarly Situated,
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No. 97-L-114

CLASS ACTION
Plaintiffs,
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vs.)
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STATE FARM MUTUAL
AUTOMOBILE INSURANCE
COMPANY,
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Defendant,


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NOTICE OF CLASS ACTION

If you have had vehicle repairs under your State Farm auto insurance policy,
this notice may affect your rights.

Please read this Court Ordered Class Action Notice carefully.

In the Circuit Court for the First Judicial Circuit, Williamson County, Illinois, a lawsuit is now pending titled: Tammy Snider and Michael Avery, on behalf of themselves and all other similarly situated, Plaintiffs, vs. State Farm Mutual Automobile Insurance Company, Defendant, No. 97-L-114. This Notice is directed to all members of the Plaintiff Class, defined as:

All persons in the United States, except those residing in Arkansas and Tennessee, who (1) were insured by a vehicle casualty insurance policy issued by Defendant State Farm and (2) made a claim for vehicle repairs pursuant to their policy and had non-factory-authorized and/or non-OEM (Original Equipment Manufacturer) "crash parts"* installed on their vehicles or else received monetary compensation determined in relation to the cost of such parts. Excluded from the Class are employees of Defendant State Farm, its officers, its directors, its subsidiaries, or its affiliates. In addition, the following persons are excluded from the Class: (1) persons who resided or garaged their vehicles in Illinois and whose Illinois insurance policies were issued/executed prior to April 16, 1994, and (2) persons who resided in California and whose policies were issued/executed prior to September 26, 1996.

Notice of this lawsuit is given pursuant to Illinois statutes, and by order of the Court, to inform you of the Court's decision to certify a Plaintiff Class, the nature of Plaintiffs' claims, and your right to participate in or exclude yourself from the Class.

Individual and representative Plaintiffs Tammy Snider and Michael Avery have been appointed by the Court to function as representatives of the Plaintiff Class. Plaintiffs' claims concern the contractual language contained in standard form State Farm automobile insurance policies issued nationwide, which, either obligate State Farm to restore a policyholder's vehicle to "its pre-loss condition" after an accident, or to "pay to repair or replace the property or part with like kind and quality." While State Farm has designed form policies specific to each state, the contractual obligations at issue in this case are stated in substantially identical form in State Farm policies issued nationwide.

Under this contractual language, State Farm uniformly specifies the use of certain non-original equipment manufacturer ("non-OEM") replacement parts (referred to as "quality replacement parts" by State Farm and "imitation parts" by Plaintiffs) when these parts are available and priced lower than original equipment manufacturer's (OEM) parts. Plaintiffs contend that non-OEM crash parts are neither of "like kind and quality," nor are they sufficient to restore a policyholder's vehicle to its "pre-loss condition." For this reason, Plaintiffs contend that State Farm has breached its contract with its policyholders. Plaintiffs also contend that State Farm's use of non-OEM crash parts and the term "quality replacement parts" are violations of the Illinois Consumer Fraud and Deceptive Business Practices Act (815 ILCS 505/1 et seq.); Plaintiffs request compensatory damages and an injunction against State Farm.

State Farm denies any wrongdoing and contends that non-OEM parts are of "like kind and quality" to OEM crash parts, and that they fully restore a policyholder's vehicle to its "pre-loss condition." State Farm also contends that its policyholders are informed whenever non-OEM crash parts are used, and that its use of the term "quality replacement parts" is not misleading.

The Court has certified for litigation and trial the Plaintiff Class of State Farm policy holders described above. The Court's class certification order does not decide the merits of Plaintiffs' claims or State Farm's defenses. Plaintiffs will be required to prove the Class claims at trial set to commence on February 2, 1999.

Class Counsel have been appointed by the Court to represent the interests of the Class. Class Counsel include G. Patrick Murphy, Barrett Law Offices, the Rose Law Firm, Much Shelist Freed Denenberg Ament Bell & Rubenstein, P.C., and Lieff, Cabraser, Heimann & Bernstein, LLP. You will not be charged for Class Counsel's services. Instead, if they obtain a recovery for the Class, Class Counsel may apply to the Court for payment of their reasonable attorneys' fees and costs by State Farm or out of any funds recovered before distribution of the net proceeds to the Class. You have the right to hire your own attorney. If you hire your own attorney, you will be responsible for paying that attorney's fee. You also have the right to seek to intervene or appear in the action with the Court's permission.

If you wish to remain a member of the Class, YOU NEED NOT DO ANYTHING AT THIS TIME. As Class members, you will be bound by all orders and judgments of the Court, and your claims will be terminated by the judgment in this case. You may exclude yourself from the Class by writing to the address below, and expressly stating in a letter postmarked by June 5, 1998, that you wish to be excluded from the Class. If you exclude yourself from the Class, you cannot participate in any recovery for the Class, and you will not be bound by any Court orders or judgments. If you wish to remain a Class member, DO NOT send an exclusion letter.

If you have questions regarding this litigation, you may write to: Snider, et al. v. State Farm, Plaintiffs' Class Counsel, P.O. Box 1500, Marion, Illinois 62959. You may also call 1-888-299-9777, or see the website at http://www.sfparts.com.

PLEASE DO NOT CONTACT THE COURT.

Dated: February 25, 1998. Honorable John Speroni, Associate Circuit Judge.


*"Crash parts" are vehicle components typically repaired or replaced as a result of crash damage rather than as a result of normal vehicle usage. The non-factory-authorized and/or non-OEM crash parts involved in this Plaintiff Class are of the following types: 1) fenders, 2) hoods, 3) doors, 4) deck lids, 5) luggage lid panels, 6) quarter panels, 7) rear outer panels, 8) front end panels, 9) header panels, 10) filler panels, 11) door shells, 12) pickup truck beds, box sides, and tail gates, 13) radiator/grill support panels, 14) grilles, 15) head lamp mounting panels/brackets/housings/lenses/doors, 16) tail lamp mounting panels/brackets/housings/lenses, 17) outer body moldings, 18) door body side molding, 19) front wheel opening moldings, 20) side moldings, 21) front and rear fascias, 22) outer panel mounting brackets, supports and surrounds, 23) bumpers (excluding chrome bumpers), 24) bumper covers/face bars, and 25) bumper brackets/supports.

Main Answers to Questions Class Action Complaint
Press Release Class Certification Order Provide Your Name and Address

Or if you have more questions, write to Snider et al v. State Farm, Plaintiffs' Class Counsel, P.O. Box 1500, Marion, IL 62959.