NAMIC Condemns Court of Appeals Verdict on Non-OEM Parts

The National Association of Mutual Insurance Companies (NAMIC) expressed disappointment with the Illinois Court of Appeals decision upholding the verdict in Avery vs. State Farm. NAMIC stated that the use of non-OEM (Original Equipment Manufacturer) parts to repair automobiles is a long-standing practice that saves money without sacrificing quality.

NAMIC’s Legislative and Regulatory Counsel, Peter A. Bisbecos said the association supported State Farm’s plans to appeal. He added that the implications of the Illinois Court of Appeals’ decision would go well beyond a financial impact of State Farm and would create a “near monopoly status for original manufacturers.

Bisbecos also stated that a trend of exorbitant jury verdicts against large companies is having a dual effect of turning courts into super regulatory bodies that are reinterpreting laws and contracts; and of forcing companies ed to make decisions based on potential liability rather than on the best interests of consumers.