Long-Crack Repair Suit Dismissed by Appeals Court
The U.S. Court of Appeals for the Tenth Circuit recently issued an opinion affirming the decision to dismiss a case in which Rich Campfield, president of Ultra Bond Licensing and Ultra Bond Windshield Repair and Replacement, alleged that State Farm, via its glass claims administrator, LYNX Services, interfered with his company's long-crack repair services. The original case was dismissed in 2005, prior to this appeal.
In last week's decision, the court writes, "We affirm, finding that Mr. Campfield failed to properly plead his antitrust claims and failed to provide sufficient evidence of a wrongful act by State Farm for purposes of the [Colorado Consumer Protection Act] or tortuous interference." (CLICK HERE for related story.)
In the suit, Campfield alleged that when a State Farm insured calls in a claim for a cracked windshield, if the crack is determined to be longer than six inches (considered a "long crack"), the insured is encouraged to have the windshield replaced rather than repaired and that the benefits of repair are not fully explained. By doing so, Campfield claims that State Farm and LYNX have interfered with the licensing of the Ultra Bond method of repairing long cracks.
The original complaint also alleged that State Farm and LYNX "used their market power to foreclose plaintiffs and all other repairable long-crack repair competitors from the windshield repair market." In the suit, Campfield's counsel, Montgomery Kolodny of Denver, also alleged that State Farm and LYNX Services violated the Colorado consumer protection law, which prohibits tortuous interference with existing and prospective business contracts.
CLICK HERE for full text of decision.
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