No. 5-99-0830 IN THE APPELLATE COURT OF ... - Appellate.net

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to assure nationwide “uniformity.” 517 U.S. at 571. 53/ That prohibition applies to all states, including the state in which the defendant is headquartered. Under the Commerce Clause, Illinois is forbidden to dictate how business should be conducted in other states and cannot impose restraints, even on its own citizens, that would needlessly restrict commerce in those other states. See Edgar v. MITE Corp., 457 U.S. 624, 640-46 (1982) (holding that Illinois’ anti-takeover statute, which interfered with the offeror’s tender for shares held by non- Illinois residents, violated Commerce Clause even though it was being applied to a tender offer for an Illinois corporation). b. The Application Of Illinois Law To Transactions That Occurred Entirely In Other States Violates The Federal Due Process And Full Faith And Credit Clauses. The Supreme Court has made clear that the federal Due Process and Full Faith and Credit Clauses forbid a state from applying its law to a transaction absent “significant contact or significant aggregation of contacts, creating state interests, with the parties and the occurrence or transaction.” Allstate Ins. Co. v. Hague, 449 U.S. 302, 308 (1981) (plurality opinion). If the state has only “one nonsignificant forum contact,” application of its law is unconstitutional. Id. at 309. 54/ Moreover, due process prohibits application of a 53/ Plaintiffs’ desire for “uniformity” rings particularly hollow in the insurance context, because Congress has expressly stated that insurance regulation should not be uniform. See Prudential Ins. Co. v. Benjamin, 328 U.S. 408, 431 & n.39 (1946) (when Congress enacted McCarran-Ferguson Act, it eschewed “uniformity of regulation” for insurance by leaving regulation to each state). 54/ The Hague case concerned whether the law of Wisconsin (place of injury) or Minnesota (plaintiff’s domicile) governed interpretation of an Allstate automobile insurance policy. See 449 U.S. at 305-06. Even though Allstate is headquartered in Illinois, no Justice of the Supreme Court suggested that Illinois law should apply. -120-
state’s law when it is not within the “expectation of the parties” at the time they enter into the transaction at issue. Shutts, 472 U.S. at 822. The Supreme Court’s decision in Shutts is controlling. Shutts was a class action filed in Kansas on behalf of residents of all 50 states against a lessee of oil and gas properties located in 11 states. In an effort to facilitate adjudication of the case on a classwide basis, the trial court applied Kansas law to all class members’ claims. <strong>No</strong>ting that “[t]here is no indication that when the leases involving land and royalty owners outside of Kansas were executed, the parties had any idea that Kansas law would control,” the Court held that the application of Kansas law to claims that had nothing to do with Kansas was “sufficiently arbitrary and unfair as to exceed constitutional limits.” 472 U.S. at 822. The Court emphasized that “Kansas ‘may not abrogate the rights of parties beyond its borders having no relation to anything done or to be done within them.’” Id. (quoting Home Ins. Co. v. Dick, 281 U.S. 397, 410 (1930)). It concluded that these “constitutional limitations . . . must be respected even in a nationwide class action.” Id. at 823. The circuit court’s decision to apply ICFA to the claims of millions of non-Illinois class members directly conflicts with Shutts. Just as Kansas had no stake in the outcome of claims centered entirely in other states, Illinois has no legitimate interest in regulating State Farm’s specification of non-OEM parts in other states pursuant to policy language that was reviewed and approved by insurance regulators in those states. For Illinois to apply its law under such circumstances squarely violates the Full Faith and Credit Clause. Furthermore, just as neither Phillips nor the non-Kansan class members could have anticipated that Kansas law would apply to their disputes, neither State Farm nor out-of-state -121-
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No. 5-99-0830 IN THE APPELLATE COUR
Page 3 and 4:
Charles Hester Enters. v. Illinois
Page 5 and 6:
In re Fibreboard Corp., 893 F.2d 70
Page 7 and 8:
State v. Piedmont Funding Corp., 38
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Hansberry v. Lee, 311 U.S. 32 (1940
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1. Plaintiffs’ Body Shop Witnesse
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People v. Clayton, 302 Ill.App.3d 2
Page 15 and 16:
VPHI, Inc. v. National Educ. Traini
Page 17 and 18:
Okada v. MGIC Indem. Corp., 823 F.2
Page 19 and 20:
Zekman v. Direct Am. Marketers, Inc
Page 21 and 22:
Malooley v. Alice, 251 Ill.App.3d 5
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NATURE OF THE CASE This is an appea
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STATUTES INVOLVED Relevant portions
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to its “pre-loss condition.” DX
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OEM parts. 5/ At least two states
Page 31 and 32:
paid the difference in cost out of
Page 33 and 34:
epair estimate specified only OEM p
Page 35 and 36:
potential class members whose names
Page 37 and 38:
member’s vehicle other than those
Page 39 and 40:
William Anderton, who had previousl
Page 41 and 42:
categorically inferior and, in fact
Page 43 and 44:
specified on their repair estimates
Page 45 and 46:
Second, plaintiffs sought “instal
Page 47 and 48:
parts] are inferior.” R. 12539 (
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had an adequate remedy at law if St
Page 51 and 52:
loss condition. Instead of requirin
Page 53 and 54:
ARGUMENT I. Class Certification Vio
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members.” Slimack v. Country Life
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of evidence State Farm would be ent
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that are incongruous with the effic
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fenders to its pre-loss condition.
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a result of Allstate’s specificat
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insurance regulators and consumer a
Page 67 and 68:
have been the overwhelming predomin
Page 69 and 70:
some class members and the issue of
Page 71 and 72:
not sooner, that plaintiffs could n
Page 73 and 74:
explained above, class members who
Page 75 and 76:
Even if the court had been right in
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value” of “parts at the time of
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page 7, supra. All of these statute
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(7th Cir. 1995) (decertifying class
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As the circuit court itself recogni
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the same shortcut, arguing — just
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epresentatives who appeared at tria
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— was injured by the alleged dece
Page 91 and 92: Litig., 182 F.R.D. at 225. Basic fa
Page 93 and 94: Meineke’s continued financial via
Page 95 and 96: this decision, plaintiffs were excu
Page 97 and 98: corresponding OEM part. R. 7169. In
Page 99 and 100: Mathur’s testimony was particular
Page 101 and 102: end of the day, Mathur conceded tha
Page 103 and 104: Zimny, 256 Ill.App.3d 386, 390-91 (
Page 105 and 106: the jury was focused on the wrong i
Page 107 and 108: to its pre-loss condition.” R. 12
Page 109 and 110: quality of non-OEM parts. See Baltu
Page 111 and 112: which is not surprising because the
Page 113 and 114: In this case, plaintiffs’ experts
Page 115 and 116: Bender could not swear that the non
Page 117 and 118: OEM part construction “had some d
Page 119 and 120: theory, even non-OEM parts that are
Page 121 and 122: of his training or expertise”). P
Page 123 and 124: eflected a policy of “discriminat
Page 125 and 126: “speak up for justice.” R. 1301
Page 127 and 128: 12984-85. The perversion of ostensi
Page 129 and 130: Polywheels company makes both the O
Page 131 and 132: parts — was simply a made-for-lit
Page 133 and 134: In contrast, each of the 47 other s
Page 135 and 136: occurred outside Illinois. 51/ In t
Page 137 and 138: laws of the State where the policy
Page 139 and 140: This Court should follow the weight
Page 141: other states, Illinois cannot apply
Page 145 and 146: headquartered in Michigan); Endo, 1
Page 147 and 148: for this Court to alter that author
Page 149 and 150: y using parts of like kind and qual
Page 151 and 152: plaintiffs’ failure to identify a
Page 153 and 154: percentage of the class (New York a
Page 155 and 156: committing fraud: if all non-OEM pa
Page 157 and 158: specification damages they had soug
Page 159 and 160: A. It Is Unconstitutional To Punish
Page 161 and 162: that will subject him to punishment
Page 163 and 164: fact benefitted from access to non-
Page 165 and 166: deterrence and therefore must be va
Page 167 and 168: 517 U.S. at 576. This case is not i
Page 169 and 170: either higher premiums or the incre
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