Sanctions Sought In First Automotive Reinsurance Suit

Law360, New York (January 13, 2010, 3:21 PM EST) -- Allstate subsidiaries First Colonial Insurance Co. and Northbrook Indemnity Co. are seeking sanctions against First Automotive Service Corp. NM for attempting to vacate an unfavorable arbitration award in a reinsurance dispute.

The parties filed the motion for Rule 11 sanctions Tuesday in the U.S. District Court for the Middle District of Florida, saying the plaintiffs were filing frivolous motions in an improper attempt to use the court to avoid the arbitration results.

“Not only have the plaintiffs filed a motion to vacate the arbitration awards that...
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