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State Farm could be liable in accident case

On Behalf of | Dec 22, 2017 | Business Litigation

Missouri residents may understand that businesses are looking to save money whenever possible. However, they may also understand that saving money today may ultimately result in paying more in the future. John Eagle Collision center was reportedly pressured by State Farm to use glue when repairing a 2010 Honda Fit despite the repair manual saying that welds were required. By using glue instead of welds, the overall repair work cost $3,000 less to complete.

State Farm could be liable for damages if it can be proven that it urged the shop to disregard the manufacturer’s recommendations. The couple who were in the car when it was hit head-on in December 2013 say that the roof repair was not part of the vehicle’s history when it was purchased. State Farm faces allegations of negligence, deceptive trade practices and breach of contract in a federal lawsuit that was filed in October 2017.

State Farm said that the facts in the case don’t support the allegations nor are they in line with company culture. In a separate personal injury case, the couple was awarded $42 million, and 75 percent of the liability was placed on the repair shop. The other 25 percent was placed on the driver of the other vehicle. A settlement was later reached with the repair shop after the verdict was announced.

If a company engages in unfair trade or other deceptive practices, it may be necessary to engage in a business litigation case. An attorney may be helpful in gathering evidence that may support a plaintiff’s claim. In some cases, multiple parties may be liable for damages, and it may be possible to pursue separate judgments against those parties. Compensation may be available to help pay medical bills or other costs related to the case.