Allstate v. Posnien

Fay Posnien, an exclusive agent for Allstate incorporated as Posnien Inc. sold the agency to Baird 7. Baird 7 subsequently executed an exclusive agency agreement with Allstate. The agency was successful following the transfer until Baird’s termination as an agent. Baird 7 chose to receive a termination payment from Allstate rather than transfer its economic interest to an approved buyer. Allstate withheld its disbursement of the funds and filed a complaint in interpleader to determine whose lien had priority to the termination payment. Posnien counterclaimed against Allstate, alleging conversion. At issue in this case was the scope of the security interest that Posnien was granted when it sold its economic interest in the agency book of business to Baird 7. The district court concluded that Posnien lacked rights in the collateral of the economic interest in the Allstate agency sold to Baird 7 and therefore could not sustain a claim for conversion against Allstate. The Supreme Court reversed the entry of judgment in favor of Allstate and remanded for entry of partial summary judgment on liability in favor of Posnien, holding that Posnien held an economic interest in the book of business, which satisfied the liability elements of conversion. View "Allstate v. Posnien" on Justia Law