Mediation Scheduled Following Motion to Dismiss in Fraud Suit

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 today, and has been scheduled for March 2, 2020.

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 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. 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,” a portion of Allstate’s response to AGA and Isaly’s motion to compel pricing agreements reads.

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. To which AGA and Isaly filed another motion against Allstate.

Case Background

For more background on the case, see glassBYTEs’ prior coverage, including: how the case started with Allstate’s complaint, AGA and Isaly’s response to Allstate’s emergency protective order, how the presiding judge issued an order regarding the emergency motion, and AGA and Isaly’s additional motion to compel pricing agreements.

Look to a future edition of glassBYTEs for continued coverage of the suit.

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