Warrantech Corporation, an independent provider of service contracts and after-market warranties, announced that an agreement has been reached with ACE Property and Casualty Insurance Company (ACE) to resolve all outstanding claims and disputes arising out of all business previously insured by ACE.
“We are very pleased that negotiations resulted in a mutually agreeable settlement between Warrantech and ACE and that no monetary consideration was paid by either party,” said Joel San Antonio, Warrantech chairman and CEO.
The terms of the agreement call for each party to give a general release of all claims, whether presently existing or arising at any time in the future. The release is a dismissal of all pending arbitrations and litigations between the parties which specifically includes lawsuits entitled, In the Matter of Arbitration Between Ace Property and Casualty Inc. Co. f/k/a CIGNA Property And Casualty Ins. Co. vs. Warrantech Corporation, et al. currently pending in Philadelphia, Pennsylvania, and a lawsuit entitled Warrantech Consumer Product Services, et al. vs. ACE Property and Casualty Ins. Co., et al. in the District Court for the Central District of California.
To resolve certain ancillary disputes that resulted from the primary lawsuit, the terms of the agreement call for Warrantech and ACE to make payments to a small number of third party service providers, the largest of which is BancTec, Inc.
Warrantech said it does not expect to have any material financial adverse impact as a result of the service provider payments.
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