Allstate Asks Court to Extend Mediation Date – Court Issues Response

The beginning of May saw new movement in the ongoing assignment of benefits (AOB) fraud lawsuit 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. According to court documents Allstate requested an extension for its scheduled mediation, which the judge did not approve.

“The plaintiffs (Allstate) respectfully request that the Court extend the mediation deadline set out in the Court’s March 16, 2020 order, and the discovery and dispositive and Daubert motion deadlines set out in the Court’s amended case management and scheduling Order as follows: (a) the parties’ deadline to complete mediation to be extended to August 21, 2020; (b) the parties’ deadline to complete discovery to be extended to September 10, 2020; and (c) the parties’ deadline for dispositive and Daubert motions to be extended to October 1, 2020. Plaintiffs do not seek any change to the Court’s trial term set to begin on February 1, 2021,” a portion of Allstate’s extension motion reads.

The Court issued a mediation notice yesterday that stated the mediation is to take place May 27, 2020 with Stanford Blake serving as the mediator. The mediation, according to the Court’s notice, is to take place virtually via Zoom. In addition to the mediation notice, the Court also issued a new set of dates for the ongoing legal battle, some of the dates include:

• Disclosure of expert reports: June 30, 2020 (plaintiff) July 30, 2020 (defendants);
• Discovery deadline August 28, 2020;
• Dispositive motions and Daubert motions: October 1, 2020;
• Meeting in person to prepare joint final pretrial statements: January 22, 2021; and
• Joint final pretrial statement: February 1, 2021.

Case Background

The lawsuit began with Allstate’s complaint alleging that both AGA and Isaly allegedly 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.

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