United Farmers Agents Assoc. v. Farmers Group, Inc.
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UFAA filed suit seeking declaratory relief against the Companies and FGI (collectively, Farmers), alleging that Farmers engaged in numerous practices that violated the terms of Agent Appointment Agreements signed prior to 2009. The trial court found that UFAA lacked standing to pursue its claims and failed to demonstrate it was entitled to declaratory relief.
The Court of Appeal held that UFAA had associational standing to pursue its claims related to performance and office standards, but did not have standing to pursue its other claims. However, on the merits, UFAA was not entitled to declaratory relief on its claims related to office locations and performance standards. In this case, although the Agreements did not expressly prohibit specific office locations or require agents meet performance standards, Farmers could terminate agencies for such reasons pursuant to the no-cause termination provision. The court also held that UFAA's single enterprise arguments were moot and UFAA's arguments related to the motion for new trial were meritless. Accordingly, the court affirmed the judgment.
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