Allstate Insurance Co. v. Posnien, Inc., 2015 MT 162 (June 16, 2015) (Rice, J.) (7-0, rev’d)
Issue: Whether the district court erred in determining that Posnien retained no security interest in the Allstate book of business sold to Baird 7 pursuant to the terms of Allstate’s contract documents.
Short Answer: Yes.
Reversed and remanded
Facts: Fay Posnien was an exclusive agent for Allstate. In 2006, Fay decided to sell the agency and retire. Allstate placed an ad on its website listing the agency for sale, and Mary Baird, incorporated at Baird 7, offered to buy the agency from Posnien for $450,000.
Posnien was required to obtain Allstate’s approval of Baird 7 as the buyer. Allstate’s Montana field manager met with Baird, shared the agency’s revenue and expense history, reviewed her business plan, tax returns and other financial documents, and conducted personal interviews with her.…