N.J. Court Rules for Allstate in Agency Lawsuits

Allstate said the Superior Court of New Jersey has entered judgment in favor of Allstate New Jersey Insurance Company, a unit of Allstate Insurance Company, and dismissed 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. But 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. Allstate argued that exclusive agents are independent contractor agents and not franchisees. The three agents plan to appeal.