In Missouri, a Jackson County jury awarded plaintiffs in a class action suit $17 million in damages against American Family Mutual Insurance Company for using aftermarket (non-OEM) parts in their vehicles. In a case that combines both elements of products liability and fraud, the suit alleged that the aftermarket crash parts that were used were of substandard quality and constituted a safety hazard. The suit also alleged their was a failure to disclose the extent that non-OEM parts were being used.
In 2005, insurance giant St. Farm Mutual faced a similar and larger lawsuit tabbed at $2 billion for using inferior aftermarket parts and failing to disclose the extend to which these parts were being used. The suit also alleged that it was St. Farm’s internal policy to use non-OEM parts on identified groups of people who most likely would not challenge the use of such parts or the insurance company’s practices in court.
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