Mediator Cancels Scheduled Session in Auto Glass AOB Fraud Lawsuit

Mediator Stanford Blake of Tampa, Fla. filed a notice of cancellation today for a virtual mediation set for May 27, 2020 via Zoom in the ongoing legal showdown between Allstate Insurance Company, Allstate Fire and Casualty Insurance Company, Allstate Indemnity Company and Allstate Property and Casualty Insurance Company (collectively Allstate) and defendants Auto Glass America LLC (AGA) and its owner, Charles Isaly.

The presiding Federal Court Judge has yet to announce a new mediator or additional plans to continue the scheduled virtual mediation with another mediator. This news comes on the heels of last week’s reported schedule changes for the ongoing assignment of benefits (AOB) fraud lawsuit.

Case Background

The lawsuit began with Allstate’s complaint alleging that both AGA and Isaly pressured its insureds into hiring them for windshield replacements, while obtaining assignment of benefits (AOBs). The lawsuit began to heat up, 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. Shortly after a mediation was scheduled.

The insurance company previously urged the court to deny AGA and Isaly’s motion to compel Allstate to provide its pricing agreements. Allstate cited confidentiality as its reason for not providing its pricing agreements. However the presiding judge ordered the insurance company to produce its pricing agreements.

From there AGA and Isaly responded to Allstate’s emergency protective order. The presiding judge then issued an order regarding the emergency motion. Last week Allstate requested additional time to meet with the defendants for mediation, to which the judge granted parts and dismissed parts. Ultimately the Court extended the mediation deadline until May 29, 2020. Following the mediation extension, Allstate filed an unopposed motion that requested additional time for the insurance company to respond to the defendants’ motion to dismiss for lack of subject matter jurisdiction. Allstate then asked the court for a dismissal on AGA and Isaly’s motion to compel “computations of each category of damages” for each plaintiff, citing that the motion was frivolous. The court decided to discharge all of defense attorney Michael Laurato’s show cause orders. New dates, along with a virtual mediation were scheduled at the beginning of May, but now the mediator selected filed a notice of cancellation.

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

This entry was posted in glassBYTEs Original Story and tagged , , , , , , , , . Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *