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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 Contract

    GLENDALE, 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