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State Farm ruling may be good news for Philip Morris


Springfield, Ill. – The Illinois Supreme Court Thursday threw out a $1 billion judgment against State Farm Insurance Company.

The case has been watched closely as an indicator of how the court will rule on an even larger class-action case - a $10 billion verdict against cigarette-maker Philip Morris.

The court ruled a lawsuit accusing State Farm of using sub-standard parts to repair damaged cars shouldn't have been given class-action status. Justices also found the plaintiffs failed to prove breach of contract or fraud.

Plaintiff's attorney Patricia Murphy says the ruling is a loss to consumers, but Bloomington-based State Farm applauded the ruling as a victory for consumers.

Legal experts and business analysts interpreted the ruling as a hint that the court will rule for Philip Morris.