Those who thought they were in good hands with Allstate may not have noticed those hands were jacking them off. Insurance company Allstate owns a stake in body shops across the country through company Sterling Autobody Centers. This didn't go over well in Texas where a law was passed to stop this obviously horrible conflict of interest. Despite losing twice in a Texas district court and once at the appellate level, Allstate Insurance and their lawyer Ken Starr (yes, that Ken Starr) is questioning the constitutionality of said law. The perverse logic of it below the jump.
Starr and Allstate are making the argument that the Texas law violates the Dormant Commerce Clause of the Constitution. This is the inverse of the Commerce Clause, which states that the Congress can make a law that impacts interstate commerce. Thus, states can't make laws restricting interstate commerce. This is totally baloney, or as AutoMuse put it, these are "some of those moth-eaten arguments most of us haven't seen since law school." The state has not only a right, but a compelling duty to restrict unfair or misleading business practices. A writ of certiori has been filed and we should know soon if the Supreme Court takes the case. [AutoMuse]