Superior Court Of New Jersey Rules In Favor Of The Allstate Corporation In Agency Franchise Lawsuits

The Allstate Corporation announced 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.