American Salvage Pool Association Sues CCC for Breach of Contract
30 March 1998
American Salvage Pool Association Files Lawsuit Against CCC Information Services, Inc. for Breach of ContractGLENDALE, Ariz., March 30 -- The American Salvage Pool Association (ASPA) today announced it has filed a lawsuit against CCC Information Services, Inc. in U.S. District Court in Chicago for breach of contract, and for declaratory and injunctive relief. ASPA President Alan Snook said, "We are extremely disturbed by CCC's course of action. In addition, we are particularly disappointed that CCC has potentially entangled many of our members' insurance customers in this suit. "ASPA is confident that it will prevail in this action against CCC," Snook added. Since 1988, ASPA and CCC have had a contract that permitted the delivery of the ASPA Salvage Value (ASV) product to the marketplace for use by the auto insurance industry. As part of that contract, CCC agreed not to compete with ASPA or its members throughout the duration of the contract, which ended in December 1997, for a period of five years thereafter. CCC also agreed to use data provided by ASPA members only in connection with the ASV product. The claim filed by ASPA involves potentially large sums of money for what ASPA believes are unauthorized uses of proprietary data, and a request for enforcement of the non-compete covenant of the contract. (The non-compete issue arises specifically in connection with CCC's announcement of its intention to offer a service to broker the sale of salvaged vehicles on behalf of insurers.) "It is ASPA's belief that CCC, in breach of the ASPA/CCC contract, may already have agreed with certain insurance companies to handle the disposition of those insurers' auto salvage," said Snook. As part of this litigation, ASPA and its attorneys intend to thoroughly investigate such agreements. ASPA, which is headquartered in Glendale, Ariz., represents approximately 210 member businesses throughout the United States and Canada. Insurance companies are the primary source of salvage vehicles for ASPA members. SOURCE American Salvage Pool Association