AGRR - November/December 2007 - AGRR Magazine

I n s u r a n c et a l kpolicy briefsTeleglass Suit DismissedASUIT FILED AGAINST AMICAMutual Insurance Co. byTeleGlass National Corp. inthe U.S. District Court of Massachusettshas been dismissed. TeleGlasssays the dismissal was mutual andwas initiated in late October, and thedismissal was completed recently. Inthe original complaint, filed on October15, Teleglass sought “preliminaryand permanent injunctive reliefto maintain the status quo and preventAmica from unilaterally andwrongfully terminating the parties’glass services agreement.” Teleglasspreviously had been providing glassclaims services for the Lincoln, R.I.-based insurer.The companies’ original agreementfor Teleglass to provide its serviceswas dated March 1, 2006, andprovided for a 1-year initial term. Accordingto Teleglass’s complaint, theagreement contains an automatic renewalprevision, so that the agreementautomatically renews foradditional 1-year terms on its anniversarydate. If either party wishedto terminate, 30 days’ written noticeto the other party was required. Teleglasssays that the initial agreementalso noted that termination couldonly occur effective as of March 1(the agreement’s anniversary date)and that Amica would not be allowedto terminate the agreement basedupon “pricing concerns,” unlessTeleglass was given the chance toremedy the concerns. “In otherwords, the Agreement provides Teleglasswith a right of first refusal as tothe pricing or cost of the servicesbeing provided to Amica under theagreement,” the complaint alleges.Teleglass originally claimed thatAmica attempted to terminate theiragreement by a letter dated August 17,2007, effective October 17, 2007. ■28 AGRR November/December 2007 www.agrrmag.com