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Tuesday, 25 February 2020 17:10

Mediation Scheduled Following Motion to Dismiss in Fraud Suit

Written by Emmariah Holcomb, glassBYTES.com

The legal battle between Allstate Insurance Company, Allstate Fire and Casualty Insurance Company, Allstate Indemnity Company and Allstate Property and Casualty Insurance Company (collectively Allstate) and Auto Glass America LLC (AGA) and its owner, Charles Isaly, intensified over the past few days.

A notice for a mediation was filed Feb. 24, and has been scheduled for March 2.


The decision to hold a mediation conference comes after the defendants filed a motion to dismiss based on a lack of jurisdiction.


“Defendants (AGA and Isaly) move to dismiss the plaintiffs’ (Allstate) complaint for lack of subject matter jurisdiction. Since no individual plaintiff can establish, by a preponderance of the evidence, that any claim against any individual defendant exceeds $75,000, each of the plaintiffs’ claims is properly dismissed for lack of subject matter jurisdiction,” a portion of the motion to dismiss reads.


Meanwhile, Allstate responded to AGA and Isaly’s motion to compel Allstate to provide its pricing agreements, and requested the court to deny this motion.


The insurance company cited confidentiality as its reason for not providing its pricing agreements.


“Prior to the instant dispute with AGA, there were a few disputes with other glass shops regarding amounts paid by Allstate, which were resolved by settlement,” a portion of Allstate’s response to AGA and Isaly’s motion to compel pricing agreements reads.


“The settlement agreements were designated as confidential and included pricing terms for payment of windshield repair and replacement claims. Defendants now seek those confidential settlement agreements.”


The lawsuit stems from Allstate’s allegations that both AGA and Isaly allegedly pressured its insureds into hiring them for windshield replacements, while obtaining assignment of benefits (AOBs).

 

The lawsuit began to intensify, as AGA and Isaly responded to Allstate’s emergency motion 24 hours before the presiding judge issued an order; in response, AGA and Isaly filed another motion against Allstate.

 

We thank glassBYTES.com for reprint permission.

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