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HomeMy WebLinkAbout00-05256 ~ " JAMES A. CLOUSE Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA vs. CONSUMERS LIFE INSURANCE COMPANY, AND AMERICAN MERCHANTS LIFE INSURANCE COMPANY CIVIL ACTION - LAW NO. (H), 5..26(,'~ T...u.- . Jury Trial Demanded Defendants AVISO USTED HA smo DEMANDADO EN LA CORTE. Si usted desea defenderse de las quejas expuestas en las paginas siguientes, debe tomar accion dentro de veinte (20) dias a partir de la fecha en que recibio la demanda y el aviso. Usted debe presentar comparecencia escrita en persona 0 por abogado y presentar en la Corte por escrito sus defensas 0 sus objeciones alas demandas en su contra. Se Ie avisa que si no se defiende, el caso puede proceder sin usted y la Corte puede decidir en su contra sin mas aviso 0 notificacion por cualquier dinero reclamado en la demanda 0 por cualquier otra queja 0 compensacio reclamadospor el Demandante. USTED PUEDE PERDER DINERO, 0 PROPIEDADES U OTROS DERECHOS IMPORTANTES PARA USTED. LLEVE ESTA DEMANDA A UN ABOGADO INMEDIATAMENTE, SI USTED NO TIENE 0 NO CONOCE UN ABOGADO, V AYA 0 LLAME A LA OFICINA EN LA DIRECCION ESCRIT A ABAJO PARA A VERIGUAR DONDE PUDED OBTENER ASISTENCIA LEGAL. :.1 Court Administrator Fourth Floor Cumberland County Court House Carlisle, Pennsylvania 17013 (717) 240-6200 ,- ,. ,--< , . ~ _L, '-t_ , - ~ ~j JAMES A. CLOUSE Plaintiff " IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA vs. CIVIL ACTION - LAW CONSUMERS LIFE INSURANCE COMPANY, AND AMERICAN MERCHANTS LIFE INSURANCE COMPANY NO. . Jury Trial Demanded Defendants NOTICE TO DEFEND YOU HAVE BEEN SUED IN COURT. If you wish to defend against the claims set forth against you in the following pages, you must take action within twenty (20) days after this Complaint and Notice are served, by entering a written appearance personally or by attorney and filing in writing with the Court your defenses or objections to the claims set forth against you. You are warned that is you fail to do so, the case may proceed without you and a default judgment may be entered against you by the Court without further notice for any money claimed in the Compliant or for any other claim or relief requested by the Defendants. You may lose money or property or other right important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THIS OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. :J Court Administrator Fourth Floor Cumberland County Court House Carlisle, Pennsylvania 17013 (717) 240-6200 - ,-',-< -_" ~f:: JAMES A. CLOUSE Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA vs. CONSUMERS LIFE INSURANCE COMPANY, AND AMEIUCAN MERCHANTS LIFE INSURANCE COMPANY CIVIL ACTION - LAW NO. (}{J - 6.2:)(, ~ T.e-.- Jury Trial Demanded Defendants " COMPLAINT Plaintiff complains of defendants above-named, and for causes of action alleges: 1. That plaintiff is an individual residing at 260 Union Hall Road, Carlisle, Cumberland County, Pennsylvania. 2. That plaintiff conducts himself as a duly licensed insurance agent in the business of selling life insurance and recruiting and managing other licensed life insurance agents in the sale of life insurance products to the general public, and as a promoter and designer of sales stratagems and materials for use in the Civil Service Market. 3. That defendant Consumers Life Insurance Company is a Corporation conducting the business of selling and administering life insurance policies, w~th its principal place of business located in Camp Hill, Cumberland County, Pennsylvania, 4. That defendant American Merchants Life Insurance Company is a Corporation conducting the business of selling and administering life insurance policies, with its principal place of business located in Jacksonville, Florida. 5. That defendant American Merchants Life Insurance Company requested and - ,-- ,~ ,"-, ""'-"";- received approval from the Pennsylvania Insurance Department to conduct business in the Commonwealth of Pennsylvania, and has in fact conducted business in this state as further alleged below. 6. That by experience and design plaintiff conducted his business primarily in the market segment identified by the work place of his client that being civil service employees of . the federal government, the so-called "Civil Service Market." 7. That defendant Consumers Life Insurance Company was desirous of offering its product to the Civil Service Market and in furtherance of such desire relied primarily on plaintiff to design the administrative and marketing elements of its "Civil Service Marketing" program. 8. That plaintiff and defendant Consumers Life Insurance Company entered a contract whereby defendant Consumers Life Insurance Company agreed to account for and to pay commission to plaintiff for his sales and, agent and program management functions involved in the sale of defendant Consumers Life Insurance Company products. 9. Said commission contracts included compensation for plaintiff in cases where he acted as the direct writing agent and override compensation forplaintiff in all cases produced by any of defendant Consumers Life Insurance Company's agents on cases where the insureds were employed as a civil service employee. :.f 10. Said override commission included a renewal commission in varying rates ranging from as high as two and one half percent (2.5%) but in no event less than one half of one percent (.5%) on all cases sold. Sample graded commission schedule attached hereto marked as Exhibit "C" and incorporated herein by reference. 2 - ~ ,',. " "- ' 'It@- II. Plaintiff fulfilled all his obligations under the contract by conducting himself as follows: recruiting agents into the "Civil Service Market"; training defendant, Consumers Life Insurance Company's agents in the prospecting and sales techniques involved in said market; " , authoring and overseeing the production of the written and audio visual material used by the entire company in said market, including recruiting, prospecting, solicitation, and training , . materials; and personally selling and managing agents in said market. 12. On or about April 1995 the total block of civil service business which had been produced through the personal and management effort of plaintiff for defendant Consumers Life Insurance Company, as measured by annual premium being paid to and collected by Consumers equaled two million ($2,000,000.00) dollars. 13. On or about April, 1995 defendant Consumers Life Insurance Company was accounting for and compensating plaintiff the agreed upon renewal commission for said block at the agreed upon rate so that at such time plaintiffs renewal commission averaged $900.00 per month. 14. On or about April, 1995 defendant Consumers Life Insurance Company sold the block in question to the defendant American Merchants Life Insurance Company. 15. Under the terms of said sale defendant American Merchants Life Insurance Company agreed to take over defendant Consumers Life Insurance Company administrative obligations with respect to the policies of insurance comprising the block including the payment of renewal compensation owed to plaintiff. 16. Under the terms of said contract defendant Consumers Life Insurance Company arranged for defendant American Merchants Life Insurance Company to satisfY its contractual obligation to plaintiff, 3 " ,-- COUNT I BREACH OF CONTRACT BY DEFENDANT CONSUMERS LIFE INSURANCE , . COMPANY WITH A DEMAND FOR AN ACCOUNTING 17. Plaintiff hereby incorporates by reference thereto, paragraphs 1 - 16 above, . 18. In violation of the contractual relationship between plaintiff and defendant Consumers Life Insurance Company, defendant Consumers Life Insurance Company has been unable to account for, and to pay and has not paid plaintiff his agreed upon renewal commission from the time it transferred said block to defendant American Merchants Life Insurance Company. 19. Plaintiff has repeatedly given defendant Consumers Life Insurance Company notice of its breach orally and in writing, 20. Defendant Consumers Life Insurance Company has in fact admitted that it is unable to preform the calculations necessary to compute and account for the amount of commissions owed. 21. Defendant Consumers Life Insurance Company has also been repeatedly notified that defendant American Merchants Life Insurance Company has not accounted for or paid the " renewal commission owing to plaintiff. 22, Defendant Consumers Life Insurance Company has been repeatedly notified by plaintiff and by defendant American Merchants Life Insurance Company itself, that defendant American Merchants Life Insurance Company is unable to perform the calculations necessary to compute and account for the amount of the renewal commission owing to plaintiff. 23. Despite repeated notice of the continuing breach of contract to pay plaintiff the 4 , ~- ~, renewal commissions owed, defendant Consumers Life Insurance Compahy retains the valuable consideration paid to it by defendant American Merchants Life Insurance Company knowing defendant American Merchants Life Insurance Company has not on behalf of defendant " . Consumers Life Insurance Company satisfied defendant Consumers Life Insurance Company obligation to account to and compensate plaintiff. . 24. Being unable to calculate or account for the amount of actual renewal commission owed to plaintiff defendant Consumers Life Insurance Company and defendant American Merchants Life Insurance Company commenced the practice of paying commission on a reduced and estimated basis. 25. Reduced estimated commission based on the last actual calculations of commissions due and owing to plaintiff at the time of the sale of the block is the only item of compensation that has been paid to plaintiff. 26. Regarding the last several of such reduced estimated payments, said payments were not offered voluntarily by defendant Consumers Life Insurance Company or defendant American Merchants Life Insurance Company and instead, paid to plaintiff only after plaintiff at considerable personal cost and expense through the time and effort of correspondence and repeated phone calls pestered the administrative personnel at defendant Consumers Life Insurance Company and at defendant American Merchants Life Insurance Company until they agreed to meet their contractual obligations. 27. Regarding several of such reduced estimated payments, defendant Consumers Life Insurance Company and defendant American Merchants Life Insurance Company's recalcitrance to make such payments was only overcome at great personal expense and frustration on the part of plaintiff to the extent that he hired legal counsel to make a written demand for same. Said 5 ,,'~_. -" . ~ ~, " , ,,- ~ '1:1, demand letters are attached hereto, marked as Exhibit "A" and Exhibit "B", and incorporated herein by reference. 28. Defendant Consumers Life Insurance Company is therefor in breach of its , . contractual obligation to account for and compensate plaintiff the agreed upon renewal commission already earned by plaintiff and in anticipatory breach of ever paying the future . renewals in that it has admitted it cannot perform the administrative calculations necessary to compute and account for the same. WHEREFOR, Plaintiff demands judgement for plaintiff and against defendant Consumers Life Insurance Company in an amount in excess of $30,000, the actual damages caused by such defendant's breach to be established at the trial of the facts, for costs and attorney fees, and for such other relief that the Court deems just and proper. AND WHEREFOR, Plaintiff asks that the Court enter an order upon defendant Consumers Life Insurance Company to account fully to the Plaintiff in order that the Plaintiff may have judgement entered against the defendant Consumers Life Insurance Company for the amount shown to be owed to him by such accounts. COUNT II ;,;' BREACH OF CONTRACT BY AMERICAN MERCHANTS LIFE INSURANCE COMPANY WITH A DEMAND FOR AN ACCOUNTING 29. Plaintiff hereby incorporates by reference thereto, paragraphs I - 28 above. 30. In violation of plaintiffs right as third party beneficiary of the contra'ctual relationship between defendant Consumers Life Insurance Company, and defendant American Merchants Life Insurance Company, defendant American Merchants Life Insurance Company 6 - ~""- - has been unable to account for, and to pay and has not paid plaintiff his agreed upon renewal commission from the time said block was transferred to defendant American Merchants Life Insurance Company.. 31. Plaintiff has repeatedly given defendant American Merchants Life Insurance Company notice of its breach orally and in writing. . 32. Defendant American Merchants Life Insurance Company has in fact admitted that it is unable to perform the calculations necessary to compute and account for the amount of commissions owed. 33. Despite repeated notice of the continuing breach of contract to pay plaintiff the renewal commissions owed to plaintiff, defendant American Merchants Life Insurance Company continues to collect premium income and benefit from its contract with defendant Consumers Life Insurance Company without meeting its corresponding obligations including the obligation to pay plaintiffs renewal commission. 34. Being unable to calculate the amount of actual -renewal commission owed to plaintiff, defendant American Merchants Life Insurance Company commenced the practice of paying commission on a reduced and estimated basis. 35. Reduced estimated commission based on the last actual calculations of ;,( commissions due and owing to plaintiff at the time of the sale of the block is the only item of compensation that has been paid to plaintiff. 36. Regarding the last several such reduced estimated payments, said payments were not offered voluntarily by defendant American Merchants Life Insurance Company and instead, paid to plaintiff only after plaintiff at considerable personal cost and expense through the time and effort of correspondence and repeated phone calls pestered the administrative personnel at 7 ~"~-, " ~."'-~.-,J_ defendant American Merchants Life Insurance Company until they agreed to meet their contractual obligations. 37, Regarding several of the last such reduced estimated payments, defendant , . American Merchants Life Insurance Company's recalcitrance to make such payments was only overcome at great personal expense and frustration on the part of plaintiff to the extent that he . hired legal council to make a written demand for same. Said demand letters are attached hereto, marked as Exhibit "A" and Exhibit "BOO, and incorporated herein by reference. 38. Defendant American Merchants Life Insurance Company is therefor in breach of its contractual obligation to account for and to compensate plaintiff the agreed upon renewal commission already earned by plaintiff and in anticipatory breach of ever paying the future renewals in that it has admitted it cannot perform the administrative calculations necessary to compute the same. WHEREFOR, Plaintiff demands judgement for plaintiff and against defendant American Merchants Life Insurance Company in an amount in excess of $30,000, the actual damages caused by such defendant's breach to be established at the trial of the facts, for costs and attorney fees, and for such other relief that the Court deems just and proper. AND WHEREFOR, Plaintiff asks that the Court enter an order upon defendant American :J Merchants Life Insurance Company to account fully to the Plaintiff in order that the Plaintiff may have judgement entered against the defendant American Merchants Life Insurance Company for the amount shown to be owed to him by such accounts. ,I 8 " l , , ' "'l1'j~, COUNT III CLAIM OF QUANTUM MERUIT AGAINST DEFENDANT CONSUMERS LIFE INSURANCE COMPANY 3 9. Plaintiff incorporates herein by, reference the allegations set forth in paragraphs 1 through 3 8 as though the same were fully set forth herein at length. . 40. Plaintiff performed certain work and services for defendant Consumers Life Insurance Company, including recruiting agents into the Civil Service Market; training Consumers Life Insurance Company's agents in the prospecting and sales techniques involved in said market; authoring and overseeing the production and distribution Of the written and audio visual material used by the entire company in said market, including recruiting, prospecting, solicitation, and training materials; and personally selling and managing agents in said market, at the specific request of defendant Consumers Life Insurance Company, for which work, labor and services defendant Consumers Life Insurance Company promised to pay plaintiff. 41. The work, labor and services performed by plaintiff on defendant, Consumers Life Insurance Company's behalf have a reasonable value of$ 100,000. 42. Defendant Consumers Life Insurance Company has failed to pay plaintiff for the work, labor and services performed by plaintiff. ;J 43. As a result of defendant Consumers Life Insurance Company's refusal to make full payment to plaintiff of the reasonable value of plaintiffs work, labor and services, plaintiff has suffered serious and continuing injury, including but not limited to loss of the value of time and effort expended on defendant Consumers Life Insurance Company's behalf. 44, As a result of defendant Consumers Life Insurance Company's refusal to make full payment to plaintiff of the reasonable value of plaintiffs work, labor and services, defendant 9 " ''''-lJ:' Consumers Life Insurance Company has been unjustly enriched at the expense of plaintiff. WHEREFORE, plaintiff demands that this Court enter judgment in its favor and against defendant ConsumeI;s Life fnsurance Company in an amount of $ I 00,000 together with costs, interest and attorneys' fees. . COUNT IV CLAIM OF QUANTUM MERUIT AGAINST DEFENDANT AMERICAN MERCHANTS LIFE INSURANCE COMPANY 45. Plaintiff incorporates herein by reference the allegations set forth in paragraphs I through 44 as though the same were fully set forth herein at length. 46. The work performed by plaintiff for defendant Consumers Life Insurance Company, contributed toward and helped generate a block of business on the books of defendant Consumers Life Insurance Company which was sold to defendant American Merchants Life Insurance Company, in April of 1995. 47, Under the Agreement of Sale by and between defendant American Merchants Life Insurance Company and defendant Consumers Life Insurance Company, defendant American Merchants Life Insurance Company agreed to accept the liabilities and obligations associated with the block, including the obligations to compensate plaintiff. 48. Defendant American Merchants Life Insurance Company, now enjoys all the revenues generated by the block of business yet refuses upon notice to compensate plaintiff for his work, labor and services. 49. As a result of defendant American Merchants Life Insurance Company's refusal to make full payment to plaintiff of the reasonable value of plaintiffs work, labor and 10 oJ_ , ~~, services, plaintiff has suffered serious and continuing injury, including but not limited to loss of the value of time and effort expended. 50. As a ~esult of defendant American Merchants Life Insurance Company refusal to make full payment to plaintiff of the reasonable value of plaintiffs work, labor and services, defendant American Merchants Life Insurance Company has been unjustly emiched , at the expense of plaintiff. WHEREFORE, plaintiff demands that this Court enter judgment in its favor and against defendant American Merchants Life Insurance Company, in an amount of$IOO,OOO together with costs, interest and attorneys' fees. COUNT V TORTUOUS INTERFERENCE WITH A BUSINESS RELATIONSHIP 51, Plaintiff incorporates herein by reference the allegations set forth in paragraphs 1 through 50 as though the same were fully set forth herein at length. 52. Plaintiff as an insurance agent and managing general agent relies on his business relationship with his current clients and sub-agents as the most valuable aspect of his business enterprise. 53. Plaintiff acquires future sales and commissions from referrals made by current :l clients who are satisfied with his representation and service and further over-ride commission from sub-agents who are desirous of continuing to sell under his hierarchy at the insurance companies he represents and for which he is authorized to appoint sub-agents. 54. Defendant American Merchants Life Insurance Company has intentionally interfered, interrupted and otherwise infringed upon plaintiff s business relationships with abject and reckless indifference to the resulting loss of income, revenue and profits caused to 1] ~ ; "< ~"A"'i' , ~:y: plaintiff s business enterprise. 55. Def~ndant American Merchants Life Insurance Company has intentionally interfered upon plain~iffs bllsiness relationships by refusing to compensate plaintiffs sub- agents for their own sales. 56. Defendant American Merchants Life Insurance Company has intentionally . interfered upon plaintiffs business relationships by refusing to provide plaintiffs insured customers with annual statements required by the Pennsylvania Insurance Department and thus failing and eliminating plaintiffs ability to service his clients in the minimum degree required by law. 57. Defendant American Merchants Life Insurance Company has intentionally interfered upon plaintiff s business relationships by refusing to provide to plaintiff or his clients servicing information regarding their life insurance contracts in such critical areas as: cash values; loan values; paid up values; in-force status; lapse status and premium paying status. 58, Defendant American Merchants Life Insurance Company has intentionally interfered upon plaintiff s business relationships by refusing to provide billings to plaintiff s clients on a timely basis. . ;,1 59. Defendant American Merchants Life Insurance Company has intentionally interfered upon plaintiffs business relationships by instructing their administrative employees to refuse to answer plaintiffs inquiries as to the status of his customer's policies. 60. Defendant American Merchants Life Insurance Company has intentionally interfered upon plaintiffs business relationships by allowing insurance policies which plaintiff sold to his clients to incorrectly lapse for non-payment of premium without 12 - - ,-,~- notification to said client, again as minimally required by law. 61. Defendant Am~rican Merchants Life Insurance Company enjoys no privilege, right or justification to so interfere with plaintiff's business relationship, to the contrary the above allegations of interference constitute violations of law and breaches of contractual responsibilities in their own right. . 62. Plaintiffbelive's and therefor avers that his business reputation, good will and business prospects will be damaged by each such instance of defendant American Merchants Life Insurance Company's interference. WHEREFOR, Plaintiff demands judgement for plaintiff and against Defendant American Merchants Life Insurance Company in an amount in excess of $30,000, the actual damages caused by such defendant American Merchants Life Insurance Company to be established at the trial of the facts, for costs and attorney fees, and for such other relief that the Court deems just and proper. Wiley, Lenox & Colgan, PC, ByDr17~ ;i David J. Lenox, Esquire Attorney for Plaintiff ID #29078 One South Baltimore Street Dillsburg, PA 17019 Phone: (717) 432-9666 DATED: June..(~ ,2000 13 . JAMES A. CLOUSE Plaintiff vs, CONSUMERS LIFE INSURANCE COMPANY, AND AMERICAN MERCHANTS LIFE INSURANCE COMPANY Defendants . ' "-., "'"' " IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYL VANIA CIVIL ACTION - LAW NO. . Jury Trial Demanded VERIFICATION I, James A. Clouse, plaintiff in the foregoing action, verifY that I am authorized to make this verification and that the statements made in the foregoing Amended Counterclaim are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa. C,S.A. Section 4904 relating to Unsworn falsification to authorities. (j,~ DATED: June U ,2000 i "A:l ~~" " '"'" JAMES A. CLOUSE Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYL VANIA v. CIVIL ACTION - LAW No. 00-5256 Civil Term CONSUMERS LIFE INSURANCE COMPANY and AMERICAN MERCHANTS LIFE INSURANCE COMPANY Jury Trial Demanded Defendants NOTICE TO PLEAD TO: James A. Clouse, Plaintiff and his attorneys, Wiley, Lenox & Colgan, PC: You are hereby notified to file a written response to the enclosed New Matter within twenty (20) days from service hereof or a judgment may be entered against you. McNEES, WALLACE & NURICK By /1.1-[ . ~ Helen L. Gemmill Attorney LD. No. 60661 Kimberly M. Colonna Attorney LD. No. 80362 100 Pine Street P. O. Box 1166 Harrisburg, PA 17108-1166 (717) 232-8000 Attorneys for Defendants Dated: October 2, 2000 ,-'~._' ~ "..'" JAMES A. CLOUSE Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA v. CIVIL ACTION - LAW No. 00-5256 Civil Term CONSUMERS LIFE INSURANCE COMPANY and AMERICAN MERCHANTS LIFE INSURANCE COMPANY Jury Trial Demanded Defendants DEFENDANTS' ANSWER TO COMPLAINT AND NEW MATTER Defendants Consumers Life Insurance Company ("Consumers Life") and American Merchants Life Insurance Company ("American Merchants"), for their answer to Plaintiff's Complaint, state as follows: 1. Admitted upon information and belief. 2. Admitted in part and denied in part. Defendants admit that plaintiff conducts himself as a duly licensed insurance agent in the business of selling life insurance policies. After reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the truth of the remaining averments of this paragraph and therefore deny the averments. 3. Admitted in part and denied in part. Consumers Life admits that its principal place of business is in Camp Hill, Pennsylvania. Consumers Life denies the remaining averments of this paragraph of the Complaint. Consumers Life was previously in the business of underwriting and administering life insurance policies. Consumers Life is no longer in this business. "-"!lIli.t<I-~ ~ld 4. Denied. American Merchants does not sell life insurance policies. American Merchants administers life insurance policies. 5. Admitted in part and denied in part. American Merchants admits the averments of this paragraph of the Complaint, except to the extent that paragraph 5 of the Complaint incorporates by reference other allegations of the Complaint. 6. Denied. After reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the truth of the averments of this paragraph and therefore deny the averments. 7. Admitted in part and denied in part. Defendants admit that Consumers Life desired to offer its products to the civil service market. Defendants are without knowledge or information sufficient to form a belief as to the remaining averments of Paragraph 7 and the same are therefore denied. 8. Denied as stated. Defendants refer to the contract for a full and complete statement of its terms. 9. Denied as stated. Defendants refer to the contract for a full and complete statement of its terms. 10. Denied as stated. Defendants refer to the contract for a full and complete statement of its terms. II. Denied. After reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the truth of the averments of this paragraph and therefore deny the averments. -2- -:-f~ ~ liltl;,,: 12. Denied. After reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the truth of the averments of this paragraph of the complaint and therefore deny the averments. 13. Denied. After reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the truth of the averments of this paragraph of the complaint and therefore deny the averments. 14. Denied as stated. Consumers Life sold the block in question to American Merchants on or about December 31,1994, but administered the paynient of agent commissions until on or about April 1995. 15. Denied as stated. Defendants refer to the contract between American Merchants and Consumers Life for a full and complete statement of its terms. 16. Denied as stated. Defendants refer to the contract between American Merchants and Consumers Life for a full and complete statement of its terms. COUNT I (Breach of Contract by Defendant Consumers Life with a Demand for Accounting) 17. Defendants incorporate by reference their responses to paragraphs 1-16 above as though set forth in full herein. 18. Denied. This paragraph states a legal conclusion as to which no response is required. To the extent a response is required, Defendants deny the averments. Upon information and belief, Defendants state that Plaintiff has been paid the full amount of commissions owed to Plaintiff by Defendants. -3- -.. .~ ~ -.' 19. Admitted in part and denied in part. Defendants deny any breach of the contract between Consumers Life and Plaintiff. Defendants admit that Plaintiff has advised Consumers Life of Plain tiffs belief that Consumers Life breached the contract. 20. Denied as stated. Further answering, Consumers Life states that it does not currently have records in its possession that would enable Consumers Life to calculate the exact amount of commissions earned by Plaintiff. Upon information and belief, Defendants state that as a result of the estimated commission payments made to Plaintiff, Plaintiff has been paid the full commissions owed to Plaintiff by Defendants. 21. Admitted in part and denied in part. Defendants deny any breach of the contract between Consumers Life and Plaintiff. Defendants admit that Plaintiff has advised Consumers Life of Plaintiffs belief that American Merchants has not accounted or paid for co=issions earned by Plaintiff. Defendants deny the remaining averments of paragraph 21 of the Complaint. Further answering, upon information and belief, Defendants state that Plaintiff has been paid the full commissions owed to Plaintiff by Defendants. 22. Admitted in part and denied in part. Defendants admit that Plaintiff has notified Consumers Life regarding his claims. Defendants deny the remaining averments of paragraph 22 of the Complaint. Upon information and belief, Defendants state that as a result of the estimated commission payments made to Plaintiff, Plaintiff has been paid the full commissions owed to Plaintiff by Defendants. -4- --''':1 w'j_ 23. Denied. Defendants deny any breach of Plaintiff's contract. Upon information and belief, Defendants state that as a result of the estimated commission payments made to Plaintiff, Plaintiff has been paid the full commissions owed to Plaintiff by Defendants. 24. Admitted in part and denied in part. Defendants admit that Defendants paid Plaintiff commissions on an estimated basis. Upon information and belief, Defendants state that Plaintiff has been paid the full commissions owed to Plaintiffby Defendants. Defendants deny the remaining averments of this paragraph ofthe complaint. 25. Denied. Upon information and belief, Defendants state that as a result of the estimated commission payments made to Plaintiff, Plaintiff has been paid the full commissions owed to Plaintiff by Defendants. 26. Denied. Defendants have fully met their contractual obligations to make payments to Plaintiff. Upon information and belief, Defendants state that as a result ofthe estimated commission payments made to Plaintiff, Plaintiff has been paid the full commissions owed to Plaintiff by Defendants. Defendants specifically deny that Plaintiff has reasonably incurred considerable cost and expense in this matter. 27. Denied. Defendants deny that demand letters are attached to the Complaint as Exhibits A and B. Defendants deny the remaining averments of this paragraph of the Complaint. Upon information and belief, Defendants state that as a result ofthe estimated commission payments made to Plaintiff, Plaintiff has been paid the full commissions owed to Plaintiff by Defendants. Defendants have fully met their contractual obligations to make payments to Plaintiff. -5- ,~_. "~ 28. Denied. This paragraph of the complaint states a legal conclusion as to which no response is required. To the extent a response is required, Defendants deny the averments. Upon information and belief, Defendants state that as a result of the estimated commission payments made to Plaintiff, Plaintiff has been paid the full commissions owed to Plaintiffby Defendants. WHEREFORE, Defendants request that Plaintiffs demand for relief be denied, that judgment be awarded in favor of Defendants and against Plaintiff and that Defendants be awarded their costs in connection with this action, along with such other relief as this Court deems just and proper. COUNT II . (Breach of Contract by American Merchants with Demand for Accounting) 29. Defendants incorporate by reference their responses to paragraphs 1-28 above as though set forth in full herein. 30. Denied. This paragraph of the Complaint states a legal conclusion as to which no response is reqnired. To the extent a response is required, Defendants deny the averments. Upon information and belief, Defendants state that as a result of the estimated commission payments made to Plaintiff, Plaintiff has been paid the full commissions owed to Plaintiff by Defendants. 31. Admitted in part and denied in part. Defendants deny any breach of the contract with Plaintiff. Defendants admit that Plaintiff has advised American Merchants of Plaintiffs belief that the contract was breached. -6- , ..~.,,'"~" - -1"", 32. Denied. Upon information and belief, Defendants state that as a result of the estimated commission payments made to Plaintiff, Plaintiff has been paid the full commissions owed to Plaintiff by Defendants. 33. Denied. Defendants deny any breach of the contract with Plaintiff. Further answering, upon information and belief, Defendants state that as a result of the estimated commission payments made to Plaintiff, Plaintiff has been paid the full commissions owed to Plaintiff by Defendants. 34. Admitted in part and denied in part. Defendants admit that Defendants paid Plaintiff commissions on an estimated basis. Upon information and belief, Defendants state that Plaintiff has been paid the full commissions owed to Plaintiff by Defendants. Defendants deny the remaining averments ofthis paragraph ofthe complaint. 35. Denied. Upon information and belief, Defendants state that as a result of the estimated commission payments made to Plaintiff, Plaintiff has been paid the full commissions owed to Plaintiff by Defendants. 36. Denied. Defendants have fully met their contractual obligations to make payments to Plaintiff. Upon information and belief, Defendants state that as a result of the estimated commission payments made to Plaintiff, Plaintiff has been paid the full commissions owed to Plaintiff by Defendants. Defendants specifically deny that Plaintiff has reasonably incurred considerable cost and expense in this matter. 37. Denied. Defendants deny that demand letters are attached to the Complaint as Exhibits A and B. Defendants deny the remaining av=ents of this paragraph ofthe Complaint. -7- ,~ J d,,] Upon information and belief, Defendants state that as a result of the estimated commission payments made to Plaintiff, Plaintiff has been paid the full commissions owed to Plaintiffby Defendants. Defendants have fully met their contractual obligations to make payments to Plaintiff. 38. Denied. This paragraph of the complaint states a legal conclusion as to which no response is required. To the extent a response is required, Defendants deny the averments. Upon information and belief, Defendants state that as a result of the estimated commission payments made to Plaintiff, Plaintiff has been paid the full commissions owed to Plaintiff by Defendants. WHEREFORE, Defendants request that Plaintiffs demand for relief be denied, that judgment be awarded in favor of Defendants and against Plaintiff and that Defendants be awarded their costs in connection with this action, along with such other relief as this Court deems just and proper. COUNT III (Claim of Quantum Meruit against Defendant Consumers Life) 39. Defendants incorporate by reference theirresponses to paragraphs 1-38 above as though set forth in full herein. 40. Admitted in part and denied in part. Defendants admit that Plaintiff performed certain services upon which Plaintiff was entitled to receive payment of commissions pursuant to Plaintiff s contract with Defendants. Defendants deny Plaintiff s characterization of the services performed by Plaintiff. -8- "'~ , . 41. Denied. After reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the truth of the averments of this paragraph of the complaint and therefore deny the averments. 42. Denied. Plaintiff has been fully compensated for the services he performed. 43. Denied. Plaintiff has been fully compensated for the services he performed. 44. Denied. Plaintiff has been fully compensated for the services he performed. WHEREFORE, Defendants request that Plaintiffs demand for relief be denied, that judgment be awarded in favor of Defendants and against Plaintiff and that Defendants be awarded their costs in connection with this action, along with such other relief as this Court deems just and proper. COUNT IV (Claim of Quantum Meruit against Defendant American Merchants) 45. Defendants incorporate by reference their responses to paragraphs 1-44 above as though set forth in full herein. 46. Admitted. 47. Denied as stated. Defendants refer to the contract between Consumers Life and American Merchants for a full statement of its terms. 48. Denied. Plaintiff has been fully compensated for the services he performed. 49. Denied. Plaintiff has been fully compensated for the services he performed. 50. Denied. Plaintiff has been fully compensated for the services he performed. -9- -~ ~"' WHEREFORE, Defendants request that Plaintiffs demand for relief be denied, that judgment be awarded in favor of Defendants and against Plaintiff and that Defendants be awarded their costs in connection with this action, along with such other relief as this Court deems just and proper. COUNT V (Tortious Interference with a Business Relationship) 51. Defendants incorporate by reference their responses to paragraphs 1-50 above as though set forth in full herein. 52. Denied. After reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the truth of the averments of this paragraph of the complaint and therefore deny the averments. 53. Denied. After reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the truth of the averments of this paragraph of the complaint and therefore deny the averments. 54. Denied. American Merchants has not intentionally interfered with, interrupted or otherwise infringed upon Plaintiffs business relationships. Plaintiff has been fully compensated for the services he performed. 55. Denied. American Merchants has not intentionally interfered upon Plaintiffs business relationships, nor has it refused to compensate its subagents. 56. Denied. This paragraph of the complaint states a legal conclusion as to which no response is required. To the extent a response is required, Defendants deny the averments. -10- ,^,""- ~ ~- "rii: 57. Denied. American Merchants has provided all such information to the extent available to American Merchants. 58. Denied. American Merchants has provided all such information to the extent available to American Merchants. 59. Denied. American Merchants has provided all such information to the extent available to American Merchants. 60. Denied. This paragraph of the complaint states a legal conclusion as to which no response is required. To the extent a response is required, Defendants deny the averments. 61. Denied. This paragraph of the complaint states a legal conclusion as to which no response is required. To the extent a response is required, Defendants deny the averments. 62. Denied. American Merchants has not engaged in any acts that have damaged Plaintiff. WHEREFORE, Defendants request that Plaintiff s demand for relief be denied, that judgment be awarded in favor of Defendants and against Plaintiff and that Defendants be awarded their costs in connection with this action, along with such other relief as this Court deems just and proper. NEW MATTER 63. Plaintiffs claims are barred, in whole or in part, by the applicable statute of limitations. 64. Plaintiff s claims are barred, in whole or in part, by the doctrine of accord and satisfaction. 65. Plaintiff s claims are barred, in whole or in part, by the defense of payment. -11- ,~.".""""-'. 66. Plaintiff has received payment for the full amount of commissions and any other compensation earned by Plaintiff. WHEREFORE, Defendants request that Plaintiffs demand for relief be denied, that judgment be awarded in favor of Defendants and against Plaintiff and that Defendants be awarded their costs in connection with this action, along with such other relief as this Court deems just and proper. McNEES, WALLACE & NURICK By III L.~ Helen 1. Gemmill Pa. Supreme Court No. 60661 Kimberly M. Colonna Pa. Supreme Court No. 80362 100 Pine Street P.O. Box 1166 Harrisburg, PA 17108-1166 Telephone: 717-237-5273 Attorneys for Defendants Dated: October 2, 2000 -12- ;,<.~ .~ - !Wl VERIfICATION SUbject to the penalties of 18 Pa. C.S. H904, relating to unsworn falsification to authorities, the undersigned hereby certifies that I am. authorized to make this verification on behalf of COIlSU1Ilen; Life Insurance CompllllY, that I have reviewed the foregoing Answer with respect to the allegations of the Complaint relating to Consumers Life Insurlllloe Company, IlIId that the facts set foJ.'th in the Answer arc true and correct to the best of my knowledge, lnfonnadon and belief'. By Printed ,..2v~ Title T./I.CM,"UIl. Company c.~1IIII4J. ~ I~"",~u. G..MfI4a,\,. Dated: S\lPtember 29. 2000 ",'~ _ ,_~ .~u~~~ o_~ ..J". VRRIFICATlOI\{ Subject to 1M penalties of 18 Pa. C.S. ~4904, relating to unsworn falsification to authorities, the undersigned hereby certifies that I am authorized to make this verification on behalf of American Merchants Life Insurance Company, that I have reviewed the foregoing Answer with respect to the allegations of the Complaint relating to AmeriCllll Merchants Life Insurance Company, and that the facts set forth in the Answer are true and correct to the best of my knowledge, information and belief. By~. Printed. Name ::Tc;t,vl vV. 1) <1 &se -;rq; Title Vrce. ete.sr~.l- Company fr-N,Vt'rq1 Piercl1O\1D Lie 1;pWMU Dated: September 29, 2000 -~'. . . " CERTIFICATE OF SERVICE The undersigned hereby certifies that on this date, a true and correct copy of the foregoing was served by first class United States mail, postage prepaid, upon the following: David J. Lenox, Esquire Wiley, Lenox & Colgan, PC. One South Baltimore Street Dillsburg, PA 17019 /U L. C1< "Z; Helen L Gemmill Dated: October 2, 2000 ji(<--"- ~.iii' -,,"; "-'l ~ ~ Ullli""''''-"~'-~~-~ -,~-==" L~ W~~: ~ ."'" , .. (') ~f~ ..' no;, , Z."":i'.~ zc- ~e; i'c, Ze----:; S>~ ~ ..' ..,. C~~ ,..~.., r, , . -n '~.J ., .-.; I r,) 'I,.,~ -\7 ~ ::-,,';G} -:'-"-i-': ~~2 (~ I-::;;),-n .::-::J :r~ ::1) -< C' -.I ~:i