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

DIMENSION SERVICE CORPORATION v. WESTCHESTER FIRE INSURANCE COMPANY

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: 
2:11-cv-00221 Search Pacer
ACE Group party(s): 
Opposing Party: 
Dimension Service Corporation
Court Type: 
Federal
US District Court: 
Southern District of Ohio
Date Filed: 
Mar 11 2011

"7. At all times relevant to this complaint Westchester Fire Insurance Company (WFIC), through its parent and sole shareholder ACE USA, Inc., was the majority and controlling shareholder of Dimension. 8. WFIC, which was in the business of providing and administering vehicle service contracts, had the need for a third party to administer all aspects of said contracts. 9. To that end, Dimension and WFIC entered into a business relationship whereby Dimension would fully administer all aspects of WFIC's vehicle service contract business. 10. In connection with and to compensate Dimension for its services, Dimension and WFIC entered into that certain Profit Share Agreement, executed on June 30, 1999 and made effective January 1, 1999 (the "PSA"), attached hereto and incorporated herein as Exhibit "A." 11. Pursuant to the terms of the PSA, WFIC agreed to provide Dimension with 100% of underwriting profits and investment income (as defined in the PSA) with respect to the vehicle service contracts administered by Dimension. 12. The PSA also provided Dimension with the right, but not the obligation, to direct certain portions of the underwriting profits and investment income to agents and/or dealers who sold the vehicle service contracts to consumers. l3. Section 5 of the PSA provides that it was "to continue in full force and effect until all contract obligations to contract holders and policy obligations of [WFIC] have expired and all profit and investment income due Dimension hereunder has been paid." 14. Four years later, WFIC utilized its dominion and control over Dimension to cause Dimension to enter into another so-called agreement pursuant to which the PSA was terminated and Dimension forfeited to WFIC its rights to any underwriting profits and investment income due thereunder for contracts issued after the effective date of the termination of the PSA. 15. An arrangement in which the CLIP insurer retains underwriting profits and investment income is unheard of in this industry."

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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