Amica Responds to Teleglass Complaint

Amica Mutual Insurance Co. has answered the suit filed by Teleglass National Corp. in the U.S. District Court of Massachusetts and denies many of the claims made by Teleglass in its complaint, filed on October 15, 2007. In the original complaint, Teleglass seeks "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 claims that Amica attempted to terminate their agreement by a letter dated August 17, 2007, effective October 17, 2007, and neither noted pricing as a cause, nor gave Teleglass a chance to remedy its concerns.

Amica denies the terms of the agreement that Teleglass cites and that it breached its contract with the Woburn, Mass.-based glass claims processor. It also denies Teleglass' claim that it is due "injunctive relief" in the matter.

Teleglass is represented by John R. Skelton and Timothy H. Madden of Bingham McCutchen LLP in Boston. Robert L. Kirby Jr. and Jennifer A. Arthur of Nixon Peabody LLP are handling the case on the behalf of Amica. The plaintiff's counsel was not available for comment at press time, and glassBYTEs.com™/AGRR magazine is awaiting comment from the defendant's attorney.

Currently an initial scheduling conference is slated for November 27 at the U.S. District Court, room no. 12 on the fifth floor.

CLICK HERE for the full text of Teleglass' original complaint.

CLICK HERE for the full text of Amica's response.

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