Volume 9, Issue 6 - November/December 2007

Insurance Talk
policy briefs

Teleglass Suit Dismissed

A suit filed against Amica Mutual Insurance Co. by TeleGlass National Corp. in the U.S. District Court of Massachusetts has been dismissed. TeleGlass says the dismissal was mutual and was initiated in late October, and the dismissal was completed recently. In the original complaint, filed on October 15, Teleglass sought “preliminary and permanent injunctive relief to maintain the status quo and prevent Amica from unilaterally and wrongfully terminating the parties’ glass services agreement.” Teleglass previously had been providing glass claims services for the Lincoln, R.I.-based insurer.

The companies’ original agreement for Teleglass to provide its services was dated March 1, 2006, and provided for a 1-year initial term. According to Teleglass’s complaint, the agreement contains an automatic renewal prevision, so that the agreement automatically renews for additional 1-year terms on its anniversary date. If either party wished to terminate, 30 days’ written notice to the other party was required. Teleglass says that the initial agreement also noted that termination could only occur effective as of March 1 (the agreement’s anniversary date) and that Amica would not be allowed to terminate the agreement based upon “pricing concerns,” unless Teleglass was given the chance to remedy the concerns. “In other words, the Agreement provides Teleglass with a right of first refusal as to the pricing or cost of the services being provided to Amica under the agreement,” the complaint alleges.

Teleglass originally claimed that Amica attempted to terminate their agreement by a letter dated August 17, 2007, effective October 17, 2007. 

AGRR
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