Allstate Unit Must Arbitrate Profit-Sharing Claims

Law360, New York (January 26, 2009, 12:00 AM EST) -- A magistrate judge has ruled that all issues of fact relating to causation or damages are subject to mandatory arbitration in a $10.7 million dispute over whether Hagerty Insurance Agency Inc. is entitled to profit-sharing payments it claims accrued under contracts it signed with an Allstate Insurance Co. subsidiary in 2007.

In a ruling Thursday in the U.S. District Court for the Western District of Michigan, Magistrate Judge Joseph Scoville denied Allstate unit Encompass Insurance Inc.'s motion for summary judgment on the pleadings “without prejudice to...
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