Texas Insurer-Owned Repair Shop Lawsuit Begins Today - aftermarketNews

Texas Insurer-Owned Repair Shop Lawsuit Begins Today

The Allstate v. Abbott trial on Texas' new Insurer-Owned Repair shop law is scheduled to begin this Monday, September 20, at the U.S. District Court for the Northern District of Texas, Dallas Division. On June 20, 2003, Texas Gov. Rick Perry signed into law Texas House Bill 1131, the Insurer-Owned Repair Facility Legislation. Earlier in the year, the Texas Senate passed the legislation by a unanimous vote of 31 to 0.

DALLAS, TEXAS — The Allstate v. Abbott trial on Texas’ new Insurer-Owned Repair shop law is scheduled to begin this Monday, September 20, at the U.S. District Court for the Northern District of Texas, Dallas Division. The Automotive Service Association (ASA) said it will be monitoring the progress of the trial.

On June 20, 2003, Texas Gov. Rick Perry signed into law Texas House Bill 1131, the Insurer-Owned Repair Facility Legislation. Earlier in the year, the Texas Senate passed the legislation by a unanimous vote of 31 to 0.

The legislation prohibits insurance companies from owning auto repair facilities in Texas. It was passed by the Senate was amended from its original House version to allow those facilities currently owned by insurance companies to remain in business if they meet certain criteria outlined in the legislation.

In September 2003, Allstate Insurance Co. and Sterling Collision Centers filed the lawsuit.

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