No. 5-99-0830 IN THE APPELLATE COURT OF ... - Appellate.net
No. 5-99-0830 IN THE APPELLATE COURT OF ... - Appellate.net
No. 5-99-0830 IN THE APPELLATE COURT OF ... - Appellate.net
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Polywheels company makes both the OEM and non-OEM versions of a Ford header-panel<br />
and that the only difference is the label on the box); 7<strong>99</strong>5-96, 8007-09, 8070-72, 9038-39,<br />
9697. Unlike plaintiffs’ anecdotal evidence, this evidence was highly probative on the<br />
critical factual question at trial — whether all non-OEM parts sold during the class period<br />
were so inferior that State Farm necessarily breached its contracts whenever it specified such<br />
parts. As plaintiffs’ own expert admitted, although many examples of bad non-OEM parts<br />
cannot prove that all such parts are bad, even one example of a good non-OEM part is<br />
enough to disprove a claim of universal inferiority. R. 7196-97.<br />
In addition to this evidence, State Farm presented evidence about the marketplace’s<br />
reaction to non-OEM parts during the class period that conclusively rebutted any claim that<br />
all non-OEM parts were inherently inferior. If all of the millions of non-OEM parts installed<br />
on vehicles since 1987 were as bad as plaintiffs claimed — fitting poorly, rusting, denting,<br />
shattering, and creating safety problems — used car markets would have reacted and<br />
consumers would have flooded not only State Farm, but also insurance regulators with<br />
complaints. But the evidence at trial made it clear that there was no such reaction.<br />
The uncontradicted real-world evidence was that used car buyers do not care whether<br />
a vehicle has been repaired with OEM or non-OEM parts. The publisher of the “Black<br />
Book” — the industry bible for used cars — testified that, if non-OEM parts affected value,<br />
the issue “would be flagged” in the market and reflected in his guide. R. 10278. But in fact<br />
valuation guides do not even mention non-OEM parts as a factor affecting the market value<br />
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