But as
new terms of office for many of us begin, there is one
major difference that separates us from previous board
members and officers. We will be the first to begin our
service after a major legal victory against State Farm.
As part
of that victory, an impartial judge heard evidence from
both sides and found that State Farm had violated the
terms of the various Agent’s Agreements through the
administration of its Partner Agent and Select Agent
programs.
The
impact of those victories would be significant enough if
they applied only to NASFA members. But they did not
apply only to NASFA members. The rulings by Judge
Braman apply to each and every State Farm agent.
When
that lawsuit was filed, the possibility that a
successful outcome would affect all agents, placed a
huge burden on NASFA to get it right. We believe that we
did. But as important as those two victories are, the
potential impact of the looming cases that will decide
whether or not the businesses owned by State Farm agents
meet the legal definition of a franchise will dwarf
their significance.
Since
the outcome of the new franchise cases could eventually
redefine the relationship between State Farm and every
one of its agents, not just members of NASFA, it once
again places a tremendous responsibility on NASFA to get
it right. We are continuing to get it right, and every
one of the changes in the relationship between State
Farm and its agents will be for the better.
Our
lead attorney in these cases will be Michael Garner (www.dadygarner.com).
In the
Summer 2006 issue of The Mirror, we asked
Michael to explain how a victory in our franchise case
might redefine our relationship with the company. Once
you have read Michael’s comments, we hope you will agree
that each potential change will help strengthen our
independent contractor relationship with State Farm.
Since
the outcome of these cases could affect every State Farm
agent, NASFA has a responsibility to keep every agent
informed of their progress and provide some awareness of
how franchise laws may impact their relationship with
State Farm. Therefore, over the course of the next 12
months, all State Farm agents will receive at least a
"mini" version of every issue of The Mirror that
we publish. The smaller versions of The Mirror
sent to non-members won’t be nearly as comprehensive as
the version that NASFA members will receive.
We hope
that you will want to know more than just the basics
about franchise law and that you will want to make a
positive investment in maintaining your status as an
independent contractor by becoming a NASFA member and by
making regular contributions to our legal fund. Since
the speed in which we are able to obtain successful
franchise declarations in various states is largely
dependent upon the level of support that we receive from
agents, please send in your membership application or
your contribution to our legal fund today.