Message #18 From:
Stock News Bot Date: December 21, 2006 08:37:00 AM
CIGI News Coach Industries Group Inc. and SCI Two-Wheel, Inc. Settle Lawsuit with Former Insurance Carrier Transguard Insurance Company of America, Inc.
COOPER CITY, Fla.--(BUSINESS WIRE)--Coach Industries Group, Inc. (“Coach”)
(OTCBB:CIGI), which offers an array of financial services to commercial
fleet operators, including vehicle financing and specialty insurance
products, today announced that it, along with its subsidiaries
Subcontracting Concepts, Inc. (Connecticut) (“SCI-CT”),
Subcontracting Concepts, Inc. (New York) (“SCI-NY”)
and SCI Two-Wheel, Inc. (“SCI-2”)
(collectively, the “Defendants”)
had settled litigation brought by Transguard Insurance Company of
America, Inc. (“TGIA”)
and National Association of Independent Truckers, LLC (“NAIT),
(collectively, the “Plaintiffs”).
Plaintiffs initiated the lawsuit with allegations of breach of fiduciary
duty, breach of contract (implied and in fact) and an account stated,
seeking damages of $1,054,000. Plaintiffs field a counterclaim against
TGIA and NAIT and a third-party claim against Transguard General
Insurance Agency, Inc. (“TGG”)
alleging breach of a December 4, 2004 Insurance Program Marketing
Agreement. As consideration for the settlement, the Defendants
Paid the Plaintiffs $400,000 on December 12, 2006;
Agreed that TGIA could retain $80,000 held in escrow on behalf of the
Defendants; and
Waived a claim that Defendants had made premium overpayments to TGIA
of $47,000.
Robert L. Lefebvre, Coach Chief Executive Officer, stated: “We
are happy to have this case behind us. Both companies had a difference
of opinion on the wording of the two-year agreement and unfortunately it
had to go before a Federal Judge to settle the dispute. We are happy
with the judge’s mediation reasoning.
Transguard was a good carrier for us and they continue to act in a
professional manner in the handling of claims incurred by our drivers
during the agreement period and we thank them for that.”
“Bob did a great job in explaining our case
and getting this litigation behind us,”
stated Steve Rothman, Coach Chairman of the Board. “Bob’s
main objective as the new CEO is to try and clear our plate of some of
the litigation that we are currently involved in. He is an excellent
negotiator and straight shooter. We applaud his victory here.”
About Coach Industries Group, Inc.
Coach Industries Group, Inc. (OTCBB:CIGI) (“Coach”)
is a holding company focused on providing financial services and the
manufacturing of luxury limousine and specialty vehicles to Commercial
Fleet Operators.
Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995: The Statements which are not historical facts contained in this
press release are forward-looking statements that involve certain risks
and uncertainties including but not limited to risks associated with the
uncertainty of future financial results, additional financing
requirements, development of new products, government approval
processes, the impact of competitive products or pricing, technological
changes, the effect of economic conditions and other uncertainties
detailed in the Company's filings with the Securities and Exchange
Commission.
