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Thursday May 16

Keystone's Charlie Hogarty Comments on Erie Lawsuit

INSIGHT received the following letter to the Collision Repair Industry from Charles J. Hogarty, President and CEO of Keystone Automotive Industries:

SUBJECT: Erie Insurance Company

Yesterday, we received notice that forty-four distributors and manufacturers, including Keystone, are being brought into the lawsuit that was filed against Erie Insurance Company in May 2000. The twist here is that it was not the plaintiffs who want us in, but rather Erie Insurance Company, the defendant. The speculation is that Erie believes they can win the case by being able to have manufacturers and distributors clearly and honestly prove that many aftermarket parts are not "inherently inferior" as the claimant's charge. In the State Farm case, this kind of testimony and proof was never allowed into the case which could have helped them.

Although we prefer not to be involved in any lawsuit, we do welcome the opportunity to demonstrate the value and quality that the aftermarket brings to the collision repair process. Other than some legal fees, we anticipate little if any measurable effect on our business and are hopeful that a win in this case will actually reverse some of the damage caused by the State Farm case.

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