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The Patterson Law Firm, LLC
June 21, 2013
FOR IMMEDIATE RELEASE:
Ray Regner and Kathryn Walker of The Patterson Law Firm, LLC Win Case on Behalf of FAX Agency
Chicago, IL—Raymond Regner and Kathryn Walker have successfully obtained summary judgment for $624,000 on behalf of FAX Agency, Inc., against American Heritage Insurance Services (AHIS), a subsidiary of Allstate.
FAX brokered a GAP insurance program—one of the unique services in which it specializes—of AHIS to the auto insurance company GMAC. In exchange for bringing the automobile giant to AHIS, the parties agreed FAX would receive a small commission. GAP insurance covers a shortfall between the value of the car (usually covered by standard insurance) and any outstanding amount of an automobile loan in the event of total loss, either through collision or theft. FAX alleged that AHIS had made improper deductions from their commissions.
After depositions of the major witnesses were taken, AHIS and FAX both moved for summary judgment. In a well-reasoned opinion, Judge Gershwin Drain of the United States District Court for the Eastern District of Michigan applied established Michigan law in ruling that the deductions were not authorized by the contract.
“Opposing counsel made every possible argument it could make, but the law was clear that the deductions AHIS made were unauthorized by the contract, and we are very gratified that the Judge enforced it. Because of the quality of the opinion, it is apt to be cited in future cases in which similar issues are presented,” said Walker, one of the attorneys for FAX.
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