Superior Court of New Jersey Rules In Favor of Allstate New Jersey in Agency Franchise Lawsuits01/06/2012 - Northbrook, IL
The Allstate Corporation (NYSE: ALL) announced today that the Superior Court of New Jersey has entered judgment in favor of Allstate New Jersey Insurance Company (Allstate New Jersey), a wholly owned subsidiary of Allstate Insurance Company, and dismissed all claims in the franchise lawsuits filed against Allstate New Jersey.
Last year, three exclusive agents filed lawsuits seeking to prevent the termination of their agency agreements for failing to meet certain business objectives.They alleged they had franchise relationships with Allstate New Jersey and were protected under the New Jersey Franchise Practices Act. The plaintiffs’ application to stop their termination was denied.
The court determined that the agents were not franchisees and have no protections under the New Jersey Franchise Practices Act. The court noted in its decision that the “insurance industry has never been found by any court in New Jersey, or elsewhere, to be home to an insurance company franchisor, or agent franchisee.”
Allstate has maintained that exclusive agents are independent contractor agents and not franchisees. The court decision affirms the company’s position.
The Allstate Corporation (NYSE: ALL) is the nation’s largest publicly held personal lines insurer known for its “You’re In Good Hands With Allstate®” slogan. Now celebrating its 80th anniversary as an insurer, Allstate is reinventing protection and retirement to help nearly 16 million households insure what they have today and better prepare for tomorrow. Consumers access Allstate insurance products (auto, home, life and retirement) and services through Allstate agencies, independent agencies, and Allstate exclusive financial representatives in the U.S. and Canada, as well as via www.allstate.com and 1-800 Allstate®.