COMPLAINT FOR DECLARATORY RELIEF AND DEMAND FOR ...

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the Agreement, an agent would obtain ownership in, and the opportunity to sell, his or herbook of business.18. Additionally, Allstate again represented that agents would enjoy greaterautonomy as independent contractors than they did as employees.C. The “Preparing for the Future” Information Booklet19. In a publication called Preparing for the Future, which was distributed to allemployee agents prior to termination, Allstate made various representations concerningwhat agents could expect under the Agreement. A copy of the booklet is attached asExhibit 1.20. In the Preparing for the Future booklet, agents were advised that they would“earn an economic interest in the business [they] write,” which would enable them to“sell this interest to a qualified buyer approved by the company” when they elected toterminate their contract. Exhibit 1, p 12.21. Elsewhere, the booklet advised agents of their ability to “manage” their“future financial security” by, among other things, “tak[ing] advantage of the agency saleoption upon termination of [the Agreement].” Exhibit 1, p 12.22. Agents were advised that existing independent contractor agents would beeligible to purchase other agents’ books of business. The booklet set forth generalrequirements (including four specific business requirements) necessary to qualify topurchase another’s book of business. Exhibit 1, p 17.
23. According to the information booklet, agents who became independentcontractors “will have control of [their] time.” Exhibit 1, p 12.D. Allstate Independent Contractor Agreement24. Allstate’s R3001 Exclusive Agency Agreement (the Agreement) purports toestablish and govern the independent contractor relationship between Allstate and itsagents. This same document, with slight modifications over the years, has been issued byAllstate to its independent contractor agents.25. When announcing the termination of all its employee agents in November of1999, Allstate issued “C” and “S” versions of the Agreement, the former to be used byindependent contractor agents who incorporated their agency and the latter to be used byindependent contractor agents who operated sole proprietorships. Save for thesedistinctions, the documents are identical. A copy of the “C” version of the Agreement isattached as Exhibit 2.A and a copy of the “S” version of the Agreement is attached asExhibit 2.B.26. Allstate purports to incorporate several supplemental publications into theterms of the Agreement itself. Paragraph I.C of the Agreement states as follows:The Supplement for the R3001 Agreement (“Supplement”) and the Exclusive AgencyIndependent Contractor Manual (“EA Manual”), and the Allstate Agency Standards(“Agency Standards”) as they may be amended from time to time, are expresslyincorporated in their entirety as part of this Agreement. The Company reserves the rightto amend the Supplement, EA Manual, and Agency Standards at any time without priornotice to Agency, except that notice regarding changes to commission amounts will begiven as indicated in Section XV.
Page 1 and 2: COMPLAINT FOR DECLARATORY RELIEFAND
Page 3: 11. Before introducing the Independ
Page 7 and 8: . Buying agent must demonstrate abi
Page 9 and 10: 39. The Agreement provides that the
Page 11 and 12: 50. Allstate has, both nationally a
Page 13 and 14: 59. The Agreement provides Allstate
Page 15 and 16: FRAUDULENT INDUCEMENT(Seeking a Jud
Page 17 and 18: 79. In the spring of 2000, Allstate
Page 19 and 20: 91. Moreover, for the first time, A
Page 21 and 22: 103. Plaintiff disputes Allstate’
Page 23 and 24: WHEREFORE, Plaintiff seeks a declar
Page 25 and 26: 120. Under present operations, Alls
Page 27 and 28: NAPAA’s agent members in Florida,
Page 29: JAMES E. FELMAN, ESQ.100 South Ashl

COMPLAINT FOR DECLARATORY RELIEF AND DEMAND FOR ...

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