The Car and Truck Fleet and Leasing Management Magazine

Supreme Court Denies Allstate's Challenge to Texas Law

February 21, 2008

WASHINGTON, D.C. --- The U.S. Supreme Court this week rejected Allstate's request to hear its case challenging a Texas law restricting insurance company ownership of body shops.

Allstate, which was seeking review of its case at the high court, argued the Texas law was unconstitutional. In a previous challenge, the law was upheld by a federal appeals court, the AP reported.

Enacted in 2003, the Texas law restricts Allstate from opening new repair shops but permits the company to operate the 15 in Texas that it already has.

In 2001, Allstate purchased Sterling Collision Centers.

Allstate's appeals case centered around the argument that the law violates restrictions the Constitution places on state regulation of interstate commerce.

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