As noted in prior updates, UFAA’s case against FGI and the Exchanges has been gaining steam over the past several months. UFAA has gone on the offensive, deposing several key individuals within FGI, while continuing to pursue other discovery avenues. However, the defendants are now attempting some offensive maneuvers of their own, with FGI and the Exchanges each filing motions seeking to have UFAA’s lawsuit dismissed in its entirety. UFAA will have an opportunity to respond to these motions, and a hearing will ultimately be held in March.
In short, FGI argues that because it is not listed in the Agent Appointment Agreements as a party, it cannot be held liable for any breaches of that agreement (notwithstanding our allegations that FGI has directed much, if not all, of the wrongful actions against agents).
The Exchanges’ motion sets forth separate arguments. First, they claim that UFAA should not be permitted to pursue this action on behalf of its members because of the sheer number of individual agents who have suffered harm from the defendants’ conduct; thus, they assert that each member should be required to pursue the case individually. This is a favorite argument of FGI, because they know that it would not be practical for each and every member agent to individually sue the defendants. It is, of course, ironic that the defendants’ own wrongful actions that have created the need for such widespread relief.
The Exchanges also take issue with the substance of all four of UFAA’s claims. Notwithstanding various documents provided by UFAA to evidence the defendants’ wrongful actions, the Exchanges maintain that UFAA still has not introduced enough evidence to proceed to trial. In addition, they employ a series of very technical arguments – possibly, in hopes of “muddying the waters” and taking the attention off the real issues in this case.
UFAA is prepared for this challenge and will continue to fight for the rights of its member agents. Additional updates will be provided in the coming weeks and months.