Safelite Withdraws Motion for Preliminary Injunction Against Minnesota

Warren E. Burger Federal Building & United States Courthouse in St. Paul, Minn.

Warren E. Burger Federal Building & United States Courthouse in St. Paul, Minn.

Safelite Group and Safelite Solutions have withdrawn their motion for preliminary injunction, which asked the U.S. District Court of Minnesota to enjoin and declare invalid enforcement of a statute in the state that excludes “Safelite from doing business in Minnesota without the opportunity for a hearing.”

The reason for the withdrawal? A partial settlement has been reached with the Minnesota Insurance Commissioner, according to court documents.

“Safelite’s withdrawal of the motion is without prejudice and does not result in a dismissal of this action,” according to court documents. “Safelite reserves the right to refile the motion or file an amended motion in the event of a violation of the terms of the parties’ partial settlement agreement.”

At the heart of the legal battle is a settlement between the Minnesota Department of Commerce, Insurance division, and Auto Club Group that provides for the Auto Club Group to pay a civil penalty of $150,000 and “cease and desist from using Safelite Solutions, or any other subsidiary of Safelite Group Inc. as its administrator of automobile glass claims in Minnesota,” according to the settlement agreement.

Safelite’s attorneys say the company was excluded from conducting business in Minnesota without notice of the commissioner’s interpretation of the law, an opportunity to challenge the interpretation or the chance to conform its conduct to that interpretation.

Safelite first argued its case on the state level before taking it to U.S. District Court. The Minnesota Supreme Court declined to review the decision.

This entry was posted in glassBYTEs Original Story. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *