The Progress of this case will be followed from a


in chronological order with links to appropriate documents.

Top of Memorandum on the
Racketeering Nature of State Farm's Misconduct
for which this is an exhibit.

The List of Exhibits

                                Exhibit 6
               State Farm Mutual Automobile Insurance Company
                            One State Farm Plaza
                          Bloomington, Ill. 61710
   G. Robert Mecherle JD, CPCU, CLU
   Claims Vice President
   Area Code 309 764-2700
   November 12, 1990
   Mr. Pier Talenti
   Detroit Testing Laboratory, Inc.
   7111 East Eleven Mile
   P.O. Box 869
   Warren, MI 48090-0869
   Dear Pier:
   This letter is an attempt to clarify Detroit Testing Laboratorys
   authority as validator of the Certified Automobile Parts Association
   program. It is also an attempt to share concerns of the CAPA Board of
   Directors regarding our relationship with Detroit Testing Laboratory
   and concerning the overall testing program.
   First of all, the Board is in complete agreement that under the terms
   of our contract with DTL, DTL has the sole authority for determining
   whether tested parts are in compliance. Although not covered directly
   in the contract, decertification of manufacturer would be implied and
   also within your authority, and we believe it is implied from the fact
   that plant approval must be given by DTL for a plant to have a part
   In this regard, you have recommended that three manufacturers be
   decertified: CFU, Huar Tay and Conjoin Key. That is your decision, and
   we presume you will be able to justify it to those manufacturers. It
   as been suggested by Frank McGiboney, whose company has had some
   experience in dealing with Far Eastern companies, that it would
   probably be more tactful to simply require those three companies to
   have their plants approved rather than use the negative
   "decertification". Until they are approved we would remove all parts
   from the directory and he would be instructed not to use any [CAPA]
   The primary concern of the CAPA Board is to make certain that only
   high quality parts receive the CAPA seal. The quality of the CAPA
   program is being attacked on many different fronts. Rumor has it the
   Federal Trade Commission is investigating the CAPA program. We know
   that Ford has an outside company testing CAPA parts and plans to
   release the results at the NACE Convention at the end of November. Ken
   Myers in a press release has already signaled those results wont be
   good for CAPA. The Ferrari Brothers, body shop owners in southern
   California, at the Collision Industry Conference showed a comparison
   of ten CAPA parts (actually, one part was a certified-applied-for
   part) versus the OE. The difference between the CAPA parts and OE
   [Original Equipment] were spelled out. We believe they are continuing
   their comparison in the other areas, and we suspect that they are
   financially sponsored by Toyota.
   Although numbers of complaints have been increasing, it is very
   difficult to judge the significance of this, since we do not know how
   many parts are being produced. DTL has been unsuccessful in getting
   production counts from the Taiwanese manufacturers, probably because
   giving these would be an admission the manufacturers are not buying
   the seals.


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Created: February 4, 2000
Last Updated: May 28, 2000