UFAA TAKES THE DRA TO NEXT LEVEL

On July 27, 2002, in a surprising and totally unexpected turn of events, California Superior Court Judge Judith Ford granted Farmers' Motion of Summary Judgment in our Declaratory Relief Motion (DRA).

A Motion of Summary Judgment is a request to the court to dismiss the case, without the necessity of a trial, because there are “no disputed material facts” to be decided at trial. The Judge's order would end the DRA if it were allowed to stand. Since our original filing, Farmers has made three attempts to have the DRA dismissed on the grounds UFAA did not have legal (associational) standing to represent it’s members. In the three prior attempts, the court did not accept Farmers argument and allowed the DRA to continue. That is why the Judge’s order was so surprising and unexpected.

UFAA and our trial Counsel Ray Estabrook, believe the Judge erred. Why? We feel the Judge’s reasoning for granting the Summary Judgment Motion flies in the face of several US Supreme Court and California Appellate Court rulings, rulings that grant an association the right to bring an action on behalf of its members if three conditions are met. Rather than base our decision to appeal on the opinion of just one lawyer and because we, as a Board, might have been to close to the case, we sought several other legal opinions. We received reports from a well-known research group in Virginia, a lawyer in Washington DC who specializes in insurance issues and a California attorney specializing in appellate work. Based on the data (reports, opinions and recommendations) we received, we instructed our attorney to notify the Court that we intended to appeal the Judge’s ruling to the California Court of Appeals.

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WHAT IS THE DRA? WHY DID UFAA FILE IT? WHY IS IT IMPORTANT TO EVERY AGENT?

When the parties to an agreement can no longer agree on the meaning of a provision in their agreement the legal system provides a method for having a court determine the respective rights of the parties. That method is called a Declaratory Relief Action (DRA).

In October 2000, UFAA filed a DRA asking the Superior Court of Alameda County, California to examine five specific concerns we had about our Agent Appointment Agreement (AAA) and determine if our interpretation or the Companies was correct. Briefly stated, the five issues that we brought to the Court are:

Why Did UFAA file the DRA? Because the issues were and are still that important. Because they touched each and every one of us as agents. What individual agent or group of agents wanted to risk their agencies or the financial commitment to challenge Farmers in Court? Remember, we are not asking for damages, only for what is rightfully ours as defined in the AAA. As every agent knows, or should know, our AAA says an agent may be terminated on three months notice. It is far better for the association to file the DRA than an individual agent.

Why is it important to every agent? Because if the Judge's ruling is not overturned, UFAA may not be able to take Farmers back to Court in California without having individual agents participate in the action or suit. Because there are questions about what the AAA says that, if we don't prevail in the DRA, all agents will have to follow Farmers blindly, in spite of what your AAA says or what you were promised, or risk termination. UFAA is Agents Helping Agents, but we can't do it without your support. If not UFAA, then who?

Dear Member,

Many of you have and are continuing to donate to the Declaratory Relief Fund (DRA). Thank you. But UFAA needs additional funds to cover the cost to appeal the judge’s ruling. Five issues. Five issues that cost you money every day, every month and every year. Five issues that we need to win.

Why are we paying to access our policyholder’s records?

Why are we forced to rewrite outside business if it wasn’t originally eligible

and acceptable to the Companies?

Why are we required to sell the Farmers Brand Products when other companies offer better and less expensive products?

Why are agents forced to pay for the classes necessary to take the exams for the Series 6 & 63 licenses?

Why are agents forced to choose between the customer’s needs and the Companies demands?

We need each and every member to send a donation (over and above your current giving) to UFAA today to allow us to appeal the Judge’s ruling, gain Associational Standing and continue the Declaratory Relief Action. We truly need to be united as an association. We need to be “Agents helping Agents.” We need 100% participation. We need you to send a check for at least $100 today. Help us help you. Thank you.

TO: UFAA DRA Fund

8978 Watson Road Suite C

St Louis, MO 63119