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The Collaborative Clearinghouse for Lawsuits and Other Claims Against ACE Group Insurance Companies

CMI INSURANCE SERVICES INC v. BANC OF AMERICA INSURANCE SERVICE

ATTENTION: It is possible that this information may no longer be current and therefore may be inaccurate. The index contains both open and closed cases and is not a complete list of cases in which an ACE Insurance Group company is involved. This information is provided to give interested persons an idea of the issues disputed in the indexed cases. For a full understanding of a case, one should read the rest of the court file, including the response. For the most up-to-date and complete information on a case, visit www.pacer.gov or contact the clerk of the relevant court.

Case Number: 
BC472997 Search Pacer
ACE Group party(s): 
Opposing Party: 
CMI INSURANCE SERVICES INC
Court Type: 
State
State Court: 
California.Supeior Court (Los Angeles County)
Date Filed: 
Nov 8 2011

"FIRST CAUSE OF ACTION
(Breach of Contract
Against Defendants BAISI, Countrywide, ACE USA, and Does 1 through 10)

25. CMI refers to and incorporates herein by reference each and every allegation set forth in paragraphs 1 through 24, inclusive.

26. BAISI's refusal to consent to the continued payment by ACE USA of commissions due to CMI under the Broker Letter is a breach of the contract between BAISI, through Countrywide, its predecessor in interest, and CMI, as alleged above.

27. As a result of said Breach of Contract by BAISI and Countrywide, CMI has suffered damages in an amount to be determined at trial, but in excess of $1,000,000.

28. ACE USA has refused to pay to CMI the commissions due to CMI under the DMP Program, thereby breaching ACE USA's contract with CMI.

29. CMI is informed and believes and on that basis alleges that ACE USA has refused to pay the commissions due to CMI under the DMP Program at the instructions and direction of BAISI.

30. As a result of the Breach of Contract by ACE USA, CMI has suffered damages in an amount to be determined at trial, but believed to be in excess of $1,000,000.

SECOND CAUSE OF ACTION
(International Interference with Prospective Economic Advantage Against Defendants BAISI, Countrywide, and Does 1 through 10)

31. CMI refers to and incorporates herein by reference each and every allegation set forth in paragraphs 1 through 30, inclusive.

32. The agreement between CMI and BAISI under the terms of which CMI was to act as marketing agent and broker for the DMP Program for a period of renewable three year terms, established an advantageous business relationship on behalf of CMI with ACE USA, which relationship presented prospective economic benefits to CMI at least until September, 2012, and presumably thereafter.

33. CMI is informed and believes and based thereon alleges that at the time BAISI intentionally caused an interruption and breach of ACE USA's relationship with CMI, BAISI was fully and completely aware that its conduct would disrupt and end the advantageous business relationship between CMI and ACE USA, BAISI knew at the time, because of its position in the marketplace and importance to ACE USA for its business, that ACE USA would honor BAISI's request to ACE USA, that ACE USA should suspend or terminate its business relationship with CMI.

34. BAISI had no justification for its interference with the prospective economic advantage CMI had with ACE USA.

35. As a result of BAISI's intentional interference with the prospective economic advantage CMI had with ACE USA, CMI has suffered and will continue to suffer damages in an exact amount to be determined at trial, but believed to be in excess of $1,000,000.

THIRD CAUSE OF ACTION
(Unfair Competition - California Business & Professions Code Section 17200, etseq.
Against Defendants BAISI, Countrywide, and Does 1 through 10)

36. CMI refers to and incorporates herein by reference each and every allegation set forth in paragraphs 1 through 35, inclusive.

37. BAISI, through its predecessor Countrywide, utilized CMI's knowledge, experience and expertise in developing, utilizing and marketing insurance provided under the DMP Program to its real estate loan borrowers, and thereby steadily increased the number of its customers insured under the program resulting in ever-increasing income to BAISI.

38. By causing ACE USA to suspend or terminate its business relationship with CMI, CMI is informed and believes and based thereon alleges that BAISI increased its own income while completely eliminating CMI's income from insurance placed under the DMP Program.

39. CMI is informed and believes and based thereon alleges that the actions of BAISI in causing the suspension or termination of CMI's relationship with ACE USA were motivated solely by greed on the part of BAISI, and were intended to and have caused irreparable economic loss to CMI. As such, BAISI's actions constitute unfair competition in violation of Section 17200 of the California Business & Professions Code. Clearly, the act of BAISI in causing said interruption and termination of commission payments caused and continues to cause harm to CMI, which outweighs any benefits to BAISI.

40. As a result of the unfair competition on the part of BAISI as hereinabove alleged, CMI has been and continues to be damaged, and BAISI has been and continues to be improperly and unfairly benefited. The amount of benefits BAISI has and will receive as a result of the unfair competition it has undertaken as hereinbefore alleged will be the subject of proof at the trial of this matter."

The provided text is an excerpt from a document filed in this case. For a full understanding of the case, one should read the complete court file, including the response.

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