Judges affirm earlier decision that Texas law banning insurer-owned shops should stand.
The U.S. Court of Appeals, 5th Circuit, New Orleans, has affirmed an earlier court’s decision that ruled it is legal for a state to ban insurance company ownership of collision repair facilities.
In the initial 2006 decision, a U.S. District Court in Dallas ruled that a state law (HB1131) passed in 2003 prohibiting insurer-owned shops in the State of Texas is constitutional. Soon after the decision, Allstate announced that it would appeal the case of Allstate Insurance Co. vs. Greg Abbott.
Allstate’s appeal centered around two main arguments:
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