Levy v. State Farm Mutual Auto Ins. Co
Plaintiffs Eugene Levy and Sharon Battle challenge the judgment entered after the trial court sustained defendant State Farm Mutual Automobile Insurance Companys (State Farm) demurrer to plaintiffs fifth amended complaint without leave to amend, granted State Farms motion to strike class action allegations without leave to amend, and granted defendants motion to dismiss Battle on the grounds of forum non conveniens. Plaintiffs contend they have properly alleged both individual and class claims arising from State Farms practice of omitting certain labor and material costs from its repair estimates, and using its own contracted repair shops in its survey to determine the prevailing competitive repair labor rates included in its estimates.
Court conclude the trial court properly sustained State Farms demurrers without leave to amend. State Farms insurance policy obligated it to repair its insureds vehicles to their preaccident condition. The fifth amended complaint fails to describe how following State Farms repair estimates would not have restored Levys or Battles vehicles to their preaccident condition. Instead, the complaint alleges State Farms repair estimates failed to include items required by industry repair standards. California regulators, however, have not specified any particular repair standards and have not required insurers to follow such standards. Moreover, nothing in plaintiffs insurance contracts required State Farm to follow the standards preferred by plaintiffs. Similarly, no policy provision or law precludes State Farm from including its contracted repair shops in determining prevailing competitive repair labor rates. Court therefore affirm the judgment.
Comments on Levy v. State Farm Mutual Auto Ins. Co