Home » NEWS » Body shops file suit over State Farm's part-finding program

Body shops file suit over State Farm's part-finding program

JACKSON — More than two dozen body shops are asking a Mississippi court to block an insurance company’s program that would change the way they find auto parts.

The Mississippi Collision Repair Association and the body shops filed a lawsuit yesterday in Hinds County Chancery Court against State Farm Mutual Automobile Insurance Company and PartsTrader LLC.

The lawsuit, which represents only one side of a legal argument, claims consumers would be at risk if State Farm requires body shops to use PartsTrader, an online marketplace, to find the least expensive parts available to do repairs. It also claims parts might have to be shipped longer distances, extending the time for repairs and damaging body shops’ relationships with their customers.

State Farm spokesman Roszell Gadson said in a statement yesterday: “We were unaware of any complaint and will have to limit what we can say until there is an opportunity to review it.”

John Eaves Jr., the plaintiffs’ attorney, said State Farm has been requiring body shops in a few states to use PartsTrader, with a plan to eventually extend that requirement to all states. The lawsuit seeks an injunction to block State Farm from requiring Mississippi body shops to use PartsTrader.

“It really is a race to the bottom because they will have to buy the cheapest parts,” Eaves said.

The plaintiffs in the case are from numerous Mississippi cities: Brandon, Brookhaven, Canton, Clinton, Crystal Springs, Flowood, Jackson, Lakeshore, Laurel, Natchez, Ocean Springs, Pearl, Philadelphia, Picayune, Richland, Ridgeland, Ruleville, Vicksburg and Yazoo City.


… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.

If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.

Click for more info

About Megan Wright

One comment

Leave a Reply