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HomeMy WebLinkAbout08-5255KRAFT & KRAFT, P.C. BY: Robert E. Cherwony, Esquire Identification No. 17623 1311 Spruce Street Philadelphia PA 19107 (215) 546-5100 INSURANCE EXCHANGE BROKERAGE SERVICES, INC. t/a PRIME INSURANCE 8722 South 300 West Attorney for Plaintiff(s) COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PA Sandy, UT 84070 vs. BYERLY INSURANCE AGENTS AND BROKERS, INC. 525 N. 12th Street Lemoyne, PA 17043 CIVIL ACTION AT LAW NO. 63 - SUS CIVIL ACTION COMPLAINT "NOTICE" "You have been sued in court. If you wish to defend against the claims set forth 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 if you fail to do so the case may proceed without you and a judgment may be entered against you by the court without further notice for any money claimed in the complaint or for any other claim or relief requested by the plaintiff. you may lose money or property or other rights important to you. elvi(Teirm "AVISO" "Le han demandado a usted en la corte. Si usted quiere defenderse de este demandas expuestas en las paginas siguientes, usted tiene veinte (20) dias de plazo al partir de la fecha de la demands y la notification. Hace falta asentar una comparencia escrita o en persona o con un abogado y entregar a la corte en forma escrita sus defensas o sus objeciones a las demandas en contra de su persona. Sea avisado que si usted no se defiende, la corte tomara medidas y puede continuar la demanda en contra suya sin previo aviso o notification. Ademas, la corte puede decidir a favor dei demandante y requiere que usted cumpla con todas las provisiones de esta demanda. Usted puede perder dinero o sus propiedades u ostros derechos importantes para usted. "YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. "LLEVE ESTA DEMANDA A UN ABOGADO IMMEDIATAMENTE. SI NO TIENE ABOGADO 0 SI NO TIENE EL DINERO SUFICIENTE DE PAGAR TAL SERVICIO, VAYA EN PERSONA 0 LLAME POR TELEFONO A LA OFIICINA CUYA DIRECCION SE ENCUENTRA ESRITA ABAJO PARA AVERIGUAR DONDE SE PUEDE CONSEGUIR ASISTENCIA LEGAL." Court Administrator Courthouse, 4th Floor 1 Courthouse Square Carlisle, PA 17013 KRAFT & KRAFT, P.C. BY: Robert E. Chewony, Esquire Attorney No. 17623 1311 Spruce Street Philadelphia PA 19107 (215) 546-5100 Attorney for Plaintiff(s) INSURANCE EXCHANGE BROKERAGE SERVICES, INC. t/a PRIME INSURANCE 8722 South 300 West Sandy, UT 84070 V. BYERLY INSURANCE AGENTS AND BROKERS, INC. 525 N. 12th Street Lemoyne, PA 17043 CIVIL ACTION COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PA CIVIL ACTION AT LAW No. () ?- , s? 5-5- 1.On or about August 30, 2006, the plaintiff by its duly authorized agent and the defendant(s) entered into a written contract a copy of which is attached hereto, and made part hereof, and marked Exhibit "A". 2. Under the terms of said written contract, the plaintiff agreed to sell to the defendant(s), and the defendant(s) agreed to purchase the merchandise and/or services set forth therein, and the defendant(s) agreed to pay for such merchandise and/or services in accordance with the terms of said written contract. 3. The plaintiff has done all the things required of it under the terms of the said written contract, but the defendant(s) failed to make the required payments and are now indebted to the plaintiff in the amount of $11,132.33. 4. The plaintiff has made demand upon the defendant(s) for payment of the said sum, but the defendant(s) failed and refused and still refuse(s) to pay the said sum or any part thereof. WHEREFORE, plaintiff claims of the defendant(s) the sum of $11,132.33, plus interest in the amount of $1,671.82, for a total of $12,804.15, plus costs, all of which is justly due and owing from the defendant(s) to the plaintiff. KRAFT & KRAFT, P.C. BY: Robert E. Cherwony, Esquire Attorney for Plaintiff PRODUCER AGREEMENT PACKAGE Thank you for your interest in writing business with us as a surplus lines broker. Attached is a copy of our Independent Producer's Agreement ("Agreement"), which we require from all producers before we place risks for them. With this Agreement in place, you will be able to submit your clients' risks to us, and you will also be eligible to receive a commission, if and when risks are bound, at such rates as are described in the Agreement. Please be sure to include all of the following information when you send the Agreement in to us: ? The. gned Independent Producer Agreement (pages 1-4). ? A completed and signed Independent Insurance Producer's Profile (Exhibit B). ? A copy of your Agent and Surplus Lines Licenses for all states within which you do surplus business. ? A copy of the Declarations Page of your current Errors and Omissions Insurance Policy. rSpecial Note for Illinois Brokers Only: You are not required to have a surplus lines license. Please submit a Broker Affidavit, the form of which is attached as Exhibit C, for all Illinois risks. No surplus lines taxes are required to be collected or paid by Illinois Brokers.] This Agreement is only effective upon receipt of the information requested above, and no policy can be . rt an effective Agreement. By signing this Agreement we are not appointing you as our bound witht ; producer or .ilgent, but rather, that we are willing to work with you as an agent for your clients. Return Information: IEBS: Broker Services Department Return by Mail: 8722 South 300 West Sandy, Utah 84070 Return by Fax: (801) 304-3727 Return by Email: brokerservices(ftrimeis.com k Questions: Contact Broker Services at (800) 257-5590 UDA-F-017 18MAY2007 Page 1 of 5 INDEPENDENT PRODUCER'S AGREEMENT THIS INDEPENDENT PRODUCER'S AGREEMENT (the "Agreement") is entered into by and between Insurance Exchange Brokerage Service, Inc. ("IEBS"), a corporation whose administrative offices are located at 8722 South 300 West, Sandy, Utah 84070, and/or any other entity through which IEBS conducts business (collectively the "Company"), and the entity listed on the attached Independent Insurance Producer's Profile (the "Broker"). The Company and the Broker (collectively the "Parties") desire to enter into this Agreement to allow the Broker to place risks on behalf of their clients (the "Insured") to the Company to underwrite in compliance with all applicable laws, rules, and regulations regarding the placement of such business; and for which the Broker will receive a commission, if and when risks are bound, at such rates as are agreed to by the Parties. The Parties agree as follows: A. THE BROKER IS ENTITLED TO A COMMISSION FOR RISKS BOUND FOR INSUREDS 1. The Company agrees to pay the Broker a commission, subject to the terms and conditions of this Agreement, according to the Commission Schedule attached as Exhibit A to this Agreement for risks submitted by the Broker and ultimately bound by the Company. The Commission Schedule is subject to change at any time by the Company upon 30 days written notice to the Broker. 2. The Broker is the agent of the Insured and not of the Company. The Parties understand, agree, and acknowledge that in no event, nor under any circumstance, will this Agreement be interpreted or construed as authorization for the Broker to bind coverage on behalf of the Company. The Parties agree that the Broker possesses no implied or apparent authority to act on behalf of the Company at anytime without the Company's prior express written instructions. B. THE BROKER IS RESPONSIBLE FOR PAYMENT OF PREMIUM I The Broker will be primarily liable to the Company for the full amount of the premium and applicable state taxes, less commission, including, but not limited to, additional premiums developed under audits or retrospective penalties on every insurance contract bound by the Company for the Broker. Premiums and taxes will be due and payable as indicated in the Company's invoice and may vary based upon the credit terms of the issuing company; otherwise, premiums are to be remitted no later than the 10"' day of the month following the effective date of the insurance contract. The Broker agrees that payment of any minimum-earned premium required by the issuing company will be the responsibility of the Broker. The Broker will be liable and remain liable to the Company for all earned premiums whether or not collected by the Broker from the Insured. Any credit extended to the Insured will be at the sole risk of the Broker who assumes responsibility for any credit extended. The Broker has a right to offset any existing undisputed net premium credit, as may be reflected in the most recent broker's premium balance statement, against any undisputed premiums that are owed by the Broker to the Company. 1. `The Broker hereby assumes full and sole responsibility for the payment of all advance or deposit premiums an) premiums accrued by audit on insurance accepted by the Company. Premiums will not include applicable taxes and tax filing fees. Down payment as identified on the Indication Quote, of 30% to 40%, must be received by the Company at one of its business offices in order to bind coverage, and any remaining balance due must be received by the Company within 10 calendar days. If the balance due is not received within 30 calendar days, cancellation notice will be sent. The Broker accepts all responsibility to satisfy any and all obligations of taxes and fees required by any state and to otherwise assure compliances with all regulatory requirements. UDA-F-01718MAY2007 Page 2 of 6 2. The Company possesses the right to audit insured and assess additional premiums for bound risks. The Broker will not be entitled to any commission on audit premium due or collected by the Company; although, the Broker will receive commissions on audit premiums the Broker collects. The Broker agrees to utilize Broker's best efforts to assist the Company in collecting any such audit premiums. The Company will also have the right to collect any audit premium due directly from the insured. 3. In any civil action or proceeding brought by the Company to recover sums due from the Broker, the Broker agrees to pay costs incident thereto, including reasonable attorney fees incurred by reason of such action or proceeding. 4. In the event the Broker is unable to collect any additional premium due at audit, the Broker may request the Company to undertake direct collection of the premium from the policyholder. The Broker shall be relieved from responsibility for payment of the additional premium provided the request is made in writing no later than 30 days from the date the Company mailed the original bill for the additional premium to the Broker. No commission shall be paid or deemed earned on any such additional premium collected directly by the Company. If the Broker fails to make a request for direct collection by the Company within the time specified herein, then the Broker shall pay the additional premium due to the Company. C. FLAT CANCELLATIONS No insurance contract may be returned by the Broker for flat cancellation unless it is returned prior to the inception or effective date of the contract. Earned premium will be computed and charged on every contract cancelled aftr inception in accordance with the cancellation provisions of such contract. D. UNEARNED COMMISSIONS The Broker agrees to refund to the Company or to the Insured unearned commissions on all business placed with the Company on cancelled policies or reduced premiums at the same rate that such commissions were origina!!y allowed the Broker. Such refund will be paid to Insured and paid by the due date indicated on the billing invoice. E. PREMIUM & FEES Notwithstanding anything to the contrary set forth herein, in any situation where a premium for a policy which has been bound cannot be fully determined in advance and where an adjustment or determination after a speck time period by audit, or otherwise, will have been made, then the amount of such additional premium due will be paid by the Broker and paid by the due date indicated on the billing invoice to the Company. All fees will be fully earned when due. F. WARRANTY The Broker expressly represents and warrants that the Broker holds a current and valid excess and surplus lines broker's license for each state within which it intends to submit risks to the Company. The Broker further represents that the Broker will maintain current and valid excess and surplus lines broker licenses in each state for which it submits risks to the Company for underwriting during the term of this Agreement. If for any reason the excess and surplus lines broker's license is suspended, terminated, revoked, not renewed or for any other reason ceases to be valid, the Broker agrees to immediately notify the Company. G. NOTICE OF EXPIRATION AND RENEWAL REQUESTS The Company will be under no obligation to give the Broker advance notice of the expiration of any insurance procured through the Company. H. OWNER,HIP OF BUSINESS The Parties agree that in the event of termination of this Agreement, the Broker will have accounted for and paid all premiums for which the Broker may be responsible in accordance with the Agreement. The Broker's records, including those pertaining to policy expiration dates, will remain the property of the Broker; however, the Broker UDA-F-017 1 BMAY2007 Page 3 of 5 will provide loss history, renewal dates, and other information pertaining to coverage to the Company upon written request. OTHER AGREEMENTS Notwithstanding anything to the contrary set forth herein, this Agreement will not be interpreted or construed so as to; (a) prevent the Broker from executing other similar agreements with competitive markets, and/or (b) compel the Company to accept or place any or all of the business offered to it by the Broker. J. HOLD HARMLESS The Broker will indemnify and hold the Company harmless against any claims, damages, liabilities, or costs (including attorney's fees, costs, and expenses), which the Company may become obligated to pay as a result of any loss to an Insured caused directly or indirectly by any act or omission, misrepresentation, or fraud committed by the Broker. The Broker further agrees to indemnify and hold the Company harmless against any claims, damages, liabilities, or costs arising directly or indirectly from any finding by a court or other trier of fact that the Broker acted, expressly or impliedly, in the capacity of an authorized agent of the Company. The Company will indemnify and hold the Broker harmless against any claims, damages, liabilities, or costs (including attorney's fees, costs, and expenses), which the Broker may become obligated to pay as a result of any loss to an Insured caused directly or indirectly by any act or omission, misrepresentation, or fraud committed by the Company. K. REIMBURSEMENT The Broker agrees to immediately upon request reimburse the Company for any and all losses, costs, or expenses (including attorney's fees, costs, and expenses) paid or incurred by the Company for which the Company would not be obliged to pay but for the Broker's failure to indemnify and hold the Company harmless. Likewise, the Company agrees to immediately upon request reimburse the Broker for any and all losses, costs, or expenses (including attorney's fees, costs, and expenses) paid or incurred by the Broker for which the Broker would not be obliged to pay but for the Company's failure to indemnify and hold the Broker harmless. L. ACCEPTANCE OF AGREEMENT BY THE COMPANY AND THE BROKER 1. The Parties agree that this Agreement will not become effective until accepted and executed by both the Company and the Broker. The Parties agree that this Agreement contains all of the contractual arrangements existing between them; and all other written or oral arrangements are deemed to be merged herein. This is the final Agreement and it supersedes any other written or oral agreements that may exist. 2. The Broker expressly consents to the Company communicating business, marketing, and sales information to the Broker through facsimile, telephone, mail, and electronic messaging to assist Broker in placing business through the Company. 3. The Broker expressly consents to receive any and all quote, binder, and policy documentation of any kind from the Company in electronic format if the Company so chooses to provide it electronically rather than in paper form. The Broker also expressly agrees to distribute such information to insured in the form agreed to between the Broker and the insured. M. CLIENT TRUST ACCOUNT The Broker agrees and acknowledges that the Broker must at all times maintain a separate Client Trust Account and deposit all premium funds collected (and owed to the Company) in such Client Trust Account. N. ADMINISTRATIVE PROVISIONS 1. This Agreement may not be altered, amended, or modified by oral representation made before or after the execution of this Agreement. All modifications must be duly executed by way of a writing signed and dated by both Parties. UDA-F-017 18MAY2007 Page 4 of 5 uir car 4VUY 11. YV ras f 11 so1'la4u DAMALS 1111• wuvo AUG-30-ss aging Pfd ad -d taw* Jr f3i?tS ? P.05? N al „fAZ fl? 4M TMT i. ttool -4??-? 1 Dram ` s s9/Jr00e 'Ci?la : 1?3?; _40'J f ;? pan I •r V' ; r the dos d ! pwvwk n upon WwMlOipei, &1W OM NO rdum OV Old 10 n%&4=6q tfi mn*n eras p"m ft-le IS Ila I?Ii?MN?c 1s ? trta lff Mdio101?eyN ?f ? ?? ?7N????? ? •. teary ` `, .?;' ; , bt?i A? w,?? lttlfr oeuAiet flfe ate 1? lM?h ? !?' end doMr ? fit ? ?? :s .." 1wI??OMNaiRf ? MfRl4si?Q?QIIM??? hW" • • , ? ( !? M+Il?eesoM+rk'MM the C01xlp?ry wtQ'Iff ttM t? Ot NOllt -.' > ;' 4, M rf1MM? od w i? or t tao ?a tx rat?ad 1o tt+Gt of R ft. f ? y fe* or ` 1. y, J y? r'J. • l? ?dll? to 10 ti`F 4 ?N. ?lydorw?f t1h d?ltm'e noun wMht.dt. w lifte K IIIhIrMiilrilr?dMw?ialM M .Fit!llM?11h?i'lld ?? IDgo) 4 P? t P ? ar d th ft m t ks hdA ONN a ed? ? nA+eAMtROrtl lhr taf?Mti?_ p?do? "Nam nu Pat" ?am on 1 Ilk to mad ` ' aftpd 1ti for snd Itu awtoon wd pia "? of the ail ?'"? - ,z to tli? Ap?eNtwn to It k' rwefla s T. The Mfdrfeull whom mpfe;{ffno >« Mllbild / ttnd tiD OMfd ft ha?? W anlh 6i4epl inrlGapl?+A . '~ :••, ? ' pef1? ifeawltb ? ? tt sfd sooveves ? MrY ? frilor! ? q ., ; fd1ef01'plrollMM?lla1+?lRrtn. MI WT f ¢P, tlae POaf? Mni0 oettr?d M ApWW t% be wasul ed a d tl» sir Index 4A .; { ? • ?? ids ? C f wi } Pr ? Oren: gtk :? ? Ma1lbf?ll" ?r •7 Z6Fp-.eA" i /IC •:'+ Defied: 1 NCOMPANr SWOn M' nd M ft cep Prk>t Name and We s: i't 04/22/2000 11:41 FAX 7177614320 BYER Y INC QI007 )&to: 0/23/2008 Time: 12:1 M To. Bperly Insurance AS CS & BrOke 0 8,1-717-761-49 1 PHISI Palos: 008 MIbIt. A 3 COMMISSION SCHEDULE IEBVs mein romm InolLwas spedelty fines ON rigi j."k claeoes of b *wm IEBS vdp provide a high level of jr, house undelwaiting ecPar0m, risk maregement, daims morn pement and a litigation avoidance approach on 911 of business written. 1. First 525.000 In Pbllov Prameirm: Correniesion Paid on Polio Premium: Per Quote 2. Prer>?et Grae Ar thaMM-000 on Each Rink: Comrniasian P hW on PoIIcy Prernim Per S*mdule 9dow Policy Pratclum t8es- C; Gael Broker +Conwilmdon 10 to 24,999 A;wunt (Aon rnkWcrv" upon Immum d panty praft"11" IThtfollow" will ba cladudad fOwn 9 ar baamilm wmrrlssion ad fps iitrra stir W1la ktditatlerr h AO+Oggft? gr1aN1M'IfIK $25,QQO to $49,999 -2.6% 590,000 and up -4.5% This Is IEBS's baseline oommiealon level. The acoou t ti derwritar YAD detternIne the commission allowed on each aoootxt a: ttte time the aoeotsrt is pdoed. •• Senior urdtawrltfrtg m¦rrapeFnent VAN apprwa all prraultm In omvm of 524,9W and MM40 the cmrrrrieabn levels a fared on d p *T*x s In eocC88a of 524,998. As sowLmt promitme go up, the baseline otuttrrdsston perrentags will be a4u*d clown. The a-aatt Q mmiaaion wAll a* apply to the first layer of premium up io the 524,999 indicated. The reduoad cmmrrtlaeton level (2.5% leer) would only apply to the premiums In anew of the >524,988 base premium laud up to 549,999. The nett redutmd oomn*Won level (2% Im).wiil only apply to the prerni ms in excees of the 549,988 prstum up to $0,90. Additional oarnMaston reductions on premiums In sovaes crf $99,999 will be input by'the u%Ww fter at the Orm the indlodan Is prepared on a cowby-case beau. 3. The Broker msust.pmvk1m JEBS with evidence for all policies Imued that the surplus lines %kes have been filed and paid on the total of all charges wrMn 30 days following the affective des of coverage. Falkre IID comply wits, tax flung and reporting obtlgatione ern to" In immedde Qant lation of floc A,proement 4, All paymemte mruct be sent to the IEW dits that conducted ew trrderwriting and b9und the coverage: 9aa1 eke City., L mh Office Chicago. Illinois Office 8722 South 300 Want 303 W. Madison StrV4 Suite 2075 Sandy, Utah 8407G Ottlcsego, IL 80806 UDAP.WT t Pips i 1 091/22/2006 11:41 FAI 717761020 BIULY INC 2008 ikie: 8/23/2006 Time: 12:1 at6 To: Byerly Insuranee AS bs L Broke E 9,1-717-761-43 PHIS1 P"Cs: 008 ExblbK 0 INDEPENDOff INSURANCE PRODUCERM PROFLE Section 1: To be oastpislaiet by am Bt*WM- Pull LWW Norm of Rrm- Byerly Insurance Agents 6 Brokers Inc. Brokers RM Name. Edward P. Case Jr. Prtmsry and Pinarldal Contact at Firm: James F. Cuff Jr. t., 2 mvwom Address: 525 H 12th Street F.o. Box 525 CAy Lemoyne Stain: PA ComVCtmberland Zip: 17043-0525 Phone; 717-761-4010 Fax: 717-761-•4320 Firm 15-mail: • _ pdm,W Eontsoti= mW: ecasei8byerlyine. com. Federc TsK I.D. No.: 23-1662197 Brokers uoenee No.: 286897 Surplus unesucense No.: .205400 3. How" hee Vo Firm been in oe7 Sine 1948 a list any prior business nanms used in t11e last 6 years. b. Business form: M Owpbratkm ? Padnenillp ? LLC Q Other 4. What It itx size d the FlrnY7 Nurnber or'Ernploymm: 25 AmvAl E8S Premium: MIS polides per year. 6. In what oboes is the nrrn loaned m wife taphas lines (pat all and slblched toptes of sit stye leerrsem): Pennsylvania. X=land a. 4tach,acopy oftbeFimftarnom and °ndavbnsbm r?00 000 eadh lose, 6, 00, 606 Agg carrier Utica Natidt?al Inc .Group ,' Uftto 1n Wn ..,h Z n*$ , 30 00? A - SS acplrationDaW 1/27/117 _ polloy# 3250468 EO 7. Dom the Flrn1 maintain 8 saperate Prief IUM trid e de*" for dspos>Sng pnerWUnf) 91 Yes ? No e. Does tiw Fiat, maintain fan opera#ing account aepan de from its prxrdum tntet acOMW ® Yes ? No 9. Flrm's Bank: Fulton Bank Banking Canted person: Mary Lowe Bank Phone: 717-255-7674 Fax:717-731-8963 E-mail: mlowelfult:onbank.cam 10. Have you, any owner, or any "ayes surrendered, cancelled, forfeited or had revoked an inaunsnce lioenae at the request of any insurance dapertrnw t, regulatory agency or In settlement of charges bro by. inaummm repttiatory authorities? [ Yes E No I yes, planes mplain, 11. i4avc y3u a awnar, or any emooyse been charged with or corMPW or any crimes. bmc. h© legal duucy? Ky4.l R uflA-8-03r117MAY2003, Page 1 of 1 STATEMENT Insurance Exchange Brokerage Services, Inc. 8722 South 300 West Sandy UT 84070 Phone: (800) 2574580 ext. 6050 Fax: (801) 504-6506 small 8j';&= BYERLY INSURANCE AGENTS S BROKERS INC. 526 N 12TH STREET LEMOYNE PA 17043 ?P1e1e. aam 51MpilMiq wan yawnam+.rir^ B/6/2007 SKR-080135 RIGAWW,77777 ?29 1 Credit Limit: Unlimited Payment Terms: Due at Binding Finance Charge Currency Amount $0.00 n"r Ewt?itrniii?lhlii4' .?, +• ,; ?p• DEBIT001W1 1/2512067 OR =11,132.33 $0.00 $11.1S2.SS • This Is I statement of your.apsn SIR Invoices. As per your poky, SIR's are nrcievable when o claim is epened on your behalf. Balance Mw 1111,152.33 it 4 CunwH ai - 90 Davs 81 and QUt $0.00 $0.00 50.00 $11,132.33 Prime Holdings Insurance Services, Inc 8722 South 300 West Sandy UT 84070 Tax Reg. Number Customer: BYERLY INSUTANCE AGENTS & BROKERS INC. 525 N 12TH STJtEET LEMOYNE PA 17043 Tax Reg. Number DES IT001 3691 ,r. 1/25/2007 .i?.1,P;i • !77-7; !: . SP0408188 BKR-050135 Due at 91nding Description: Amount 004-108259 CHRGSK COMM $11,132.33 $11,132-33 0.00 so.06 00 '.-•: d $11,132.33 N 7 f o ?i Nw J gg id 9 90 M 11l . HH $ a 1 w r0 6 M .. _ • ? ? 1 Ip N C r f O tp O e Q C r?• f tR ? 171 ((?p to ? r M gp ( ? K7 ? ? V t M sI5IR1RIR Irg 8 g?gl - r L p!Or.ti r Y Y m ':? ?• ?i erD? r ? r f C7 ? ? UU UCJU r. r;r r?r, i r ?r r r rr•r rl ? I I?rl , 'r r is rgQg;r r? N.r iif• i ?I 0.1' Ig. , C CL' N to N vY V9 N co N N?p?jj I?I N Mpffir?rl. ? w r ? C QOw1 N W 1 CIx Q U O Zr23Z,1ZZ 9 9- Z w 2 YI X00 -j Lu N yayJ yiyN > Uen ca to at :Y ? Y. ??? ? d} i? w? fA y= W M? IUlIU7?tA N l'O-Qm I all 10 '?; r r r r r r r r r Y. Y.V STATE OF _/ /?51? AFFIDAVIT COUNTY OF Before me, a Notary Public duly commissioned in and for the above state and county, this day personally appeared to me well known, who being by me first duly sworn says: / That he/she is the credit manager of /A,e?M? 1??l?.aA?/ That he/she is • iar with the account in favor of 1.&IY-' an against /AW C6 if 47251VIT That said account shows a balance and amours due of g3 ( ) 0/?E?/t/.?/D?t? Tf/l?A?TJ°7A/? ,. 33 cV107S? with interest at the rate of P, percent per annum from until paid. That said account is within his/her. knowledge just, true, and correct and is truly due and unpaid. That all just and lawful offsets, credits, discounts, and payments have been allowed and the said amount is due after said allowance. AFFIANT SWORN TO BEFORE ME AND subscribed in my presence this day of L`{ ,200 NOTARY PUBLI Notary Seal .?- GA1"HEHINE ANN NAGEL NOTARYPUBW • STATE of UTAH r' 8722 Harrison Street I P.O, Box 4439 Sandy, UT 84091 Irv COMMISSION EXPIRES: 1"1-2010 ?= ts? ao (N O 3a - r f? rr a SHERIFF'S RETURN - REGULAR CASE NO: 2008-05255 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND INSURANCE EXCHANGE BROKERAGE VS BYERLY INSURANGE AGENTS AND STEVE BENDER Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT & NOTICE was served upon BYERLY INSURANCE AGENTS AND BROKERS INC the DEFENDANT , at 1125:00 HOURS, on the 15th day of September, 2008 at 525 N 12TH STREET LEMOYNE, PA 17043 by handing to MARY ANN SHIFFLET, SECRETARY, ADULT IN CHARGE a true and attested copy of COMPLAINT & NOTICE together with and at the same time directing Her attention to the contents thereof. Sheriff's Costs: So Answers: Docketing 18.00 Service 16 . 0 0/J? Postage .59 ?"'"?-d ,?f"_..•--._..o Surcharge 10.00 R. Thomas Kline 00 Iolo3/6F 44.-59 09/15/2008 KRAFT & KRAFT Sworn and Subscibed to By: before me this day Deputy Sheriff of A.D. PETERS & WASILEFSKI By: Charles E. Wasilefski, Esquire Attorney ID #21027 2931 North Front Street Harrisburg, PA 17110 [7171238-7555 Attorney for Defendant INSURANCE EXCHANGE BROKERAGE SERVICES, INC. t/a PRIME INSURANCE Plaintiff IN THE COURT OF COMMON PLEAS FOR CUMBERLAND COUNTY, PENNSYLVANIA V. BYERLY INSURANCE AGENTS & BROKERS, INC. CIVIL ACTION - LAW Gf NO.--O9g 5255 Civil Term NOTICE TO PLEAD TO: PLAINTIFF AND ITS COUNSEL YOU ARE REQUIRED to plead to the within Answer with New Matter within twenty (20) days of service hereof, or a default judgment may be entered against you. PETERS & WASILEFSKI By: J Charles E. Wasilefski Attorney ID #21027 2931 North Front Street Harrisburg, PA 17110-1250 [717] 238-7555, Ext. 110 Attorney for Defendant Date: October 8, 2008 PETERS & WASILEFSKI By: Charles E. Wasilefski, Esquire Attorney ID #21027 2931 North Front Street Harrisburg, PA 17110 [7171238-7555 Attorney for Defendant INSURANCE EXCHANGE IN THE COURT OF BROKERAGE SERVICES, INC. COMMON PLEAS FOR t/a PRIME INSURANCE CUMBERLAND COUNTY, Plaintiff PENNSYLVANIA V. CIVIL ACTION - LAW BYERLY INSURANCE AGENTS NO. X5255 Civil Term & BROKERS, INC. ANSWER WITH NEW MATTER TO COMPLAINT NOW COMES, Defendant, Byerly Insurance Agents & Brokers, Inc. ("Byerly"), by and through its attorneys, Peters & Wasilefski, and answers Plaintiff's Complaint as follows: 1. Defendant, Byerly, admits the allegations contained in Paragraph 1 of Plaintiff's Complaint. 2. Defendant, Byerly, denies the allegations contained in Paragraph 2 of Plaintiff's Complaint. The allegations contained in said paragraph are conclusions of law to which no further answer is required. To the extent that an answer may be necessary, it is stated that said allegations are a self serving interpretation of a written document that speaks for itself. It is further denied that the characterization of the relationship set forth in said paragraph is correct. To the contrary, the document referred to is merely an Insurance Producer agreement that allows Defendant, Byerly, to sell Plaintiff's insurance products. 3. Defendant, Byerly, denies the allegations contained in Paragraph 3 of Plaintiffs Complaint. To the contrary, Plaintiff has not performed its obligations and continues to withhold information related to the financial transactions related to this situation. Additionally, the premium for the insurance product involved was paid through a premium finance company, Green Light Premium Finance Co., believed to be a company wholly owned by and directly affiliated with Plaintiff. The insurance policy premium was financed through Green Light Premium Finance Co. with the knowledge and acceptance of Plaintiff. It is further denied that Defendant, Byerly, is indebted to Plaintiff in the sum of $11,132.33. To the contrary, if any monies are owed to Plaintiff, which is specifically denied, said monies are owed by Green Light Premium Finance Co. and/or the insured, Salgal, Inc. d/b/a American Taxi. 4. Defendant, Byerly, admits in part and denies in part the allegations contained in Paragraph 4 of Plaintiffs Complaint. It is admitted that Plaintiff has demanded payment and that Defendant, Byerly, has refused to pay any such demand. It is denied, however, that Defendant, Byerly, has any responsibility to make any payments to Plaintiff or for any other reason owes the sum of money demanded by Plaintiff. Therefore, any such refusal to pay on the demand is justified. In further answer, Defendant, Byerly, has made numerous requests for a full and accurate accounting of the account and Plaintiff has ignored these requests. WHEREFORE, Defendant, Byerly, demands that Plaintiff's Complaint be dismissed. NEW MATTER 5. Defendant, Byerly, placed insurance for Salgals, Inc. d/b/a American Taxi, through Plaintiff, Insurance Exchange Brokerage Services, for insurance to be provided by The Prime Insurance Syndicate, Inc. 6. As part of the transaction, the premium was financed through Green Light Premium Finance Co. and it is believed and therefore averred that Plaintiff received full payment of the premium and payments from the insured were to be made to Green Light Premium Finance Co., pursuant to a finance agreement between Salgals, Inc. d/b/a American Taxi and Green Light Premium Finance Co. 7. The premium finance arrangement was known to and approved by Plaintiff and the insurance company. Under such agreement, Plaintiff and/or the insurance company received full payment of premium for the insurance provided. 8. It is believed and therefore averred that Plaintiff, The Prime Insurance Syndicate, Inc. and Green Light Premium Finance Co. are affiliate companies and all have offices in the same place in Sandy, Utah. It is believed and therefore averred that The Prime Insurance Syndicate, Inc. fully owns Plaintiff, Insurance Exchange Brokerage Service, Inc. and Green Light Premium Finance Co. 3 9. At some point in time, the insurance policy was cancelled. Plaintiff, The Prime Insurance Syndicate, Inc. and Green Light Premium Finance Co. have refused to provide Defendant, Byerly, with any insurance policy cancellation documentation or a legitimate, full, and accurate accounting of premiums and commissions. 10. Based upon information received, according to the finance agreement between Green Light Premium Finance Co. and Salgals, Inc. d/b/a American Taxi, the total policy premium was $185,108. Salgals, Inc. d/b/a American Taxi paid a down payment of $47,514.50 and financed $137,593.50. There were finance charges of $10,263.20 for a total of $147,856.70 that would have been ultimately paid to Green Light Premium Finance Company if the insurance would not have been cancelled at some unknown date. 11. Under any circumstance, as a result of the transactions described above, it is believed and therefore averred that Plaintiff and the insurance carrier received full payment of premiums directly from Green Light Premium Finance Company, who was paid directly by Salgals, Inc. d/b/a American Taxi. Therefore, any dispute over unpaid premium or other charges is between Plaintiff, Green Light Premium Finance Company, and Salgals, Inc. d/b/a American Taxi. 12. Defendant, Byerly, is not indebted to Plaintiff or anyone else as related to the transactions associated with the insurance provided to Salgals, Inc. d/b/a American Taxi. 4 WHEREFORE, Defendant, Byerly, demands that Plaintiff's Complaint be dismissed. PET?RS & WASILEFSKI By: Charl s E. Wasilefski Attor ey ID #21027 2931 orth Front Street Harri burg, PA 17110-1250 [7171238-7555, Ext. 110 Attorney for Defendant, Byerl Insurance Brokers & Agents, Inc. Date: October 7, 2008 5 VERIFICATION I hereby affirm that the following Byerly Insurance Agents and foregoing action and I am authorized to execute this are correct: , Inc. is the Defendant in the on its behalf. The attached Answer with New Matter is based upon information that I have furnished to my counsel and information that has been gathered by my counsel in pre aration of the prosecution of the lawsuit. The language of the Answer with New Matter is that of counsel and not of me. I have read the Answer with New Matter and to the extent that Answer with New Matter is based upon information which I have given to my counsel, ?t is true and correct to the best of my knowledge, information and belief. To the extent that a content of the Answer with New Matter is that of counsel, I have relied upon counsel in aking this verification. I hereby acknowledge that the facts set forth in the aforesaid Answer ith New Matter are made subject to the penalties of 18 Pa. C.S. Section 4904 relating to unsw rn falsification to authorities. Dated: 10-7-08 This is to certify that I, Pamela J. rum, a legal assistant in the law offices of Peters & Wasilefski, have this da 2008, served a true and correct copy of the foregoing ANSWER WITH NEW MATTER TO COMPLAINT upon all parties by depo4iting same in the United States mail, first class, postage prepaid, addressed as follows: Robert E. Cherwony, Esquire KRAFT & KRAFT, P.C. 1311 Spruce Street Philadelphia, Pennsylvania 19107 (Attorney for Plaintiff) J. Crum r ' " cn, _ KRAFT & KRAFT, P.C. BY: Robert E. Cherwony, Esquire Attorney No. 17623 Attorney for Plaintiff 1311 Spruce Street Philadelphia, PA 19107 (215)546-5100 INSURANCE EXC;HANUE BROKERAGE COURT OF COMMON PLEAS OF SERVICES, INC., t/a PRIME INSURANCE CUMBERLAND COUNTY, PA VS. CIVIL ACTION AT LAW BYERLY INSURANCE AGENTS AND NO.2008-05255 BROKERS, INC. REPLY TO NEW MATTER 5. Admitted. 6.-7. Denied as stated. On the contrary, due to non-payment by the insured to PFC, the policy was cancelled and the premium was returned and paid back to GLPFC. 8. Denied as stated. On the contrary, GLPFC is located and administered in St. Louis, MO by ASI. The Prime Insurance Syndicate, Inc,.does not own plaintiff. 9. Denied. On the contrary, all requested documentation has been supplied. Plaintiff has supplied copies of the cancellation documents and a full accounting of premiums, payments, cancellations and commissions. 10. Denied. On the contrary, the policy was cancelled as of 1/14/08 because of non-payment by the insured. 11.-12. Denied. On the contrary, plaintiff is entitled to reimbursement for unearned commissions from defendant pursuant to the contract. WHEREFORE, plaintiff requests judgement in its favor Robert E. Cherwony, Attorney for Plaintiff r VERIFICATION Robert E. Cherwony, Esquire hereby states that he is the Attorney for Plaintiff in this action and verifies that the statements made in the foregoing pleading are true and correct to the best of his knowledge, information and belief. The undersigned understands that the statements therein are made subject to the penalties 18 Pa. C.S. 4904 relating to unworn falsification to authorities. Date: obert E. C erwony CA PETERS & WASILEFSKI By: Charles E. Wasilefski, Esquire Attorney ID #21027 2931 North Front Street Harrisburg, PA 17110 [7171238-7555 Attorney for Defendant INSURANCE EXCHANGE BROKERAGE SERVICES, INC. t/a PRIME INSURANCE Plaintiff V. BYERLY INSURANCE AGENTS & BROKERS, INC. IN THE COURT OF COMMON PLEAS FOR CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW • 0& - NO. OW5255 Civil Term OBJECTION TO PETTION FOR APPOINTMENT OF ARBITRATORS NOW COMES, Defendant, Byerly Insurance Agents & Brokers, Inc. ("Byerly"), by and through its attorneys, Peters & Wasilefski, and objects to the Petition for Appointment of Arbitrators recently filed by Plaintiff, Insurance Exchange Brokerage Services, Inc. t/a Prime Insurance ("IEBS"), for the following reasons: 1. The pleadings in this matter just recently closed with Plaintiff, IEBS, filing a Reply to New Matter. 2. Defendant, Byerly, desires to conduct discovery in this matter in the form of written interrogatories, request for production of documents and depositions prior to this matter being arbitrated. 446 3. Defendant, Byerly, has made numerous informal requests for information with regard to the basis for Plaintiff's claims and have not received adequate responses to these requests. The only response was for Plaintiff to provide an illegible spread sheet without backup documentation related to this complex claim involving insurance premium financing. 4. Defendant, Byerly, has recently served Interrogatories and Request for Production of Documents upon Plaintiff. If Defendant, Byerly, can receive this information in legible form, it may lead to an amicable resolution of this matter. 5. Additionally, based upon information that Defendant, Byerly, has, an indispensable party to this action may have to be joined after a review of the pertinent information supplied in response to the discovery. 6. Defendant, Byerly, believes and seeks verification of the facts that a company known as Greenlight Premium Finance Company is an indispensable party that may be the party that has liability to Plaintiff for the claim. However, before proceeding with the joinder of Greenlight Premium Finance Company, Defendant, Byerly, requires the information being sought in discovery. 7. Plaintiff has failed to consult with counsel for Defendant, Byerly prior to petitioning for the appointment of arbitrators and Defendant, Byerly, is not ready to proceed with arbitration at this time. 2 WHEREFORE, Defendant, Byerly, respectfully requests that this matter not be listed for arbitration at this time because it is not ready for trial at this time. PETERS & WASILEFSKI By: Charles E. Wasilefski Attorney ID #21027 2931 North Front Street Harrisburg, PA 17110-1250 [717] 238-7555, Ext. 110 Attorney for Defendant, Byerly Insurance Brokers & Agents Date: January 22, 2009 3 CERTIFICATE OF SERVICE This is to certify that I, Pamela J. Crum, a legal assistant in the law offices of Peters & Wasilefski, have this day of , 2009, served a true and correct copy of the foregoing OBJECTIONS TO PETITION FOR APPOINTMENT OF ARBITRATORS upon all parties by depositing same in the United States mail, first class, postage prepaid, addressed as follows: Robert E. Cherwony, Esquire KRAFT & KRAFT, P.C. 1311 Spruce Street Philadelphia, Pennsylvania 19107 (Attorney for Plaintiff) J Pamela J. Crum cry _ ?? INSURANCE EXCHANGE BROKERAGE SERVICES, INC. t/a PRIME INSURANCE VS. BYERLY INSURANCE AGENTS AND BROKERS, INC. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO 2008-05255 20 RULE 1312-1 The Petition for Appointment of Arbitrators shall be substantially in the Following form: PETITION FOR APPOINTMENT OF ARBITRATORS TO THE HONORABLE, THE JUDGES OF SAID COURT: Robert E. Cherwony, Esquire counsel for the plaintiff/defendant in the above action (or actions), respectfully represents that: 1. The above-captioned action (or actions) is (are) at issue. 2. The claim of plaintiff in the action is $ 12,804.15 The counterclaim of the defendant in the action is The following attorneys are interested in the case(s) as counsel or are otherwise disqualified to sit as arbitrators: Charles E. Wasilefski, Esquire WHEREFORE, your petitioner prays your Honorable Court to appoint three (3) arbitrators to whom the case shall be submitted. Respec ORDER OF COURT AND NOW, , 200 , in consideration of the foregoing petition, Esq., and Esq., and captioned action (or actions) as prayed for. Esq., are appointed arbitrators in the above By the Court, EDGAR B. BAYLEY INSURANCE EXCHANGE BROKERAGE SERVICES, INC. t/a PRIME INSURANCE VS. BYERLY INSURANCE AGENTS AND BROKERS, INC. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA 2008-05255 NO. , 20 c? RULE 1312-1 The Petition for Appointment of Arbitrators shall be substantially iii;ihe Following form: _- PETITION FOR APPOINTMENT OF ARBITRATORS TO THE HONORABLE, THE JUDGES OF SAID COURT: tD Robert E. Cherwony, Esquire counsel for the plaintiff/defendant in the above action (or actions), respectfully represents that: 1. The above-captioned action (or actions) is (are) at issue. 2. The claim of plaintiff in the action is $ 12,804.15 The counterclaim of the defendant in the action is The following attorneys are interested in the case(s) as counsel or are otherwise disqualified to sit as arbitrators: Charles E. Wasilefski, Esquire WHEREFORE, your petitioner prays your Honorable Court to appoint three (3) arbitrators to whom the case shall be submitted. Respec su , ORDER OF COURT AND NOW, , 200____, in consideration of the foregoing petition, Esq., and captioned action (or actions) as prayed for. Esq., and Esq., are appointed arbitrators in the above By the Court, err EDGAR B. BAYLEY INSURANCE EXCHANGE BROKERAGE SERVICES, INC. t/a PRIME INSURANCE Vs. BYERLY INSURANCE AGENTS AND BROKERS, INC. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA 2008-05255 NO. , 20 C-- RULE 1312-1 The Petition for Appointment of Arbitrators shall be substantially i`Jte 4' Following form: ` . W ;. CZ) PETITION FOR APPOINTMENT OF ARBITRATORS rn TO THE HONORABLE, THE JUDGES OF SAID COURT: '-g Robert E. Cherwony, Esquire counsel for the plaintiff/defendant in the above action (or actions), respectfully represents that: 1. The above-captioned action (or actions) is (are) at issue. 2. The claim of plaintiff in the action is $ 12,804.15 The counterclaim of the defendant in the action is The following attorneys are interested in the case(s) as counsel or are otherwise disqualified to sit as arbitrators: Charles E. Wasilefski, Esquire WHEREFORE, your petitioner prays your Honorable Court to appoint three (3) arbitrators to whom the case shall be submitted. Respec mTttr, ORDER OF COURT AND NOW, , 200 , in consideration of the foregoing petition, . Esq., and Esq., and Esq., are appointed arbitrators in the above captioned action (or actions) as prayed for. By the Court, EDGAR B. BAYLEY RECEIPT FOR PAYMENT ------------------- ------------------- Cumberland County Prothonotary's Office Receipt Date 11/30/2009 Carlisle, Pa 17013 Receipt Time 13:15:58 Receipt No. 234240 INSURANCE EXCHANGE BROKERAGE (VS) BYERLY INSURANCE AGENTS Case Number 2008-05255 Received of PD KRAFT AND KRAFT IM Total Non-Cash..... + Total Cash......... + Change ............. - Receipt total...... _ 24.00 Check# 15996 .00 .00 $24.00 --------- ----------- Distribution Of Payment ---------------------------- 7ransaction Description Payment Amount APPT OF ARBITRA 24.00 CUMBERLAND CO GENERAL FUND $24.00 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA INSURANCE EXCHANGE BROKERAGE SERVICES, INC. t/a PRIME INSURANCE 2008-05255 NO. 20 vs. BYERLY INSURANCE AGENTS AND BROKERS, INC. RULE 1312-1 The Petition for Appointment of Arbitrators shall be substantially in the Following form: PETITION FOR APPOINTMENT OF ARBITRATORS TO THE HONORABLE, THE JUDGES OF SAID COURT: Robert E. Cherwony, Esquire counsel for the plaintiff/defendant in the above action (or actions), respectfully represents that: 1. The above-captioned action (or actions) is (are) at issue. 2. The claim of plaintiff in the action is $ 12,804.15 The counterclaim of the defendant in the action is The following attorneys are interested in the case(s) as counsel or are otherwise disqualified to sit as arbitrators: Charles E. Wasilefski, Esquire WHEREFORE, your petitioner prays your Honorable Court to appoint three (3) arbitrators to whom the case shall be submitted. ORDER OF COURT AND NOW, jQM&Jt b6t J( , 200 9 ' consideration of the foregoing petition, Esq., and _ u 4 7- Esq., and Esq., are appointed arbitrators in the above captioned action (or actions) as prayed f . By e Cou EDGAR B. BAYLEY 1 Lk r' t ? d (f V rJ ° "3 r CID i e Q ? INSURANCE EXCHANGE IN THE COURT OF COMMON PLEAS OF BROKERAGE SERVICES, INC., CUMBERLAND COUNTY, PENNSYLVANIA t/a PRIME INSURANCE CIVIL ACTION - LAW VS. NO. 08-5255 CIVIL BYERLY INSURANCE AGENTS AND BROKERS, INC., Defendants: ORDER AND NOW, this ?-rday of January, 2010, the appointment of a Board of Arbitrators in the above-captioned case is VACATED. George B. Faller, Jr., Esquire, Chairman, shall be paid the sum of $50.00. BY THE COURT, Kevin ess, P. J. Georga B. Faller, Jr., Esquire Court Administrator - ? Lucs-r-L 1,J -0, k :rlm Cop r Lm gth?L IY n o v o -c, Fn CJi r ? 1 -ij 77 J. ? KRAFT & KRAFT, P.C. BY: Robert E. Cherwony, Esquire Attorney No. 17623 1311 Spruce Street Philadelphia PA 19107 (215) 546-5100 reckraft@bigplanet.com 2010 MA ; 30 A 10: 22 Attorney for Plai?ii L. r ;AiY INSURANCE EXCHANGE BROKERAGE SERVICES, INC. t/a PRIME INSURANCE VS. BYERLY INSURANCE AGENTS AND BROKERS, INC. COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PA CIVIL ACTION AT LAW NO. 2008-05255 ORDER TO SETTLE, DISCONTINUE AND END TO THE PROTHONOTARY: Kindly mark the above matter settled, discontinued, and ended, upon payment of your costs only. March 16, 2010 Date Robert E. Cherwony, Esquire Attorney for Plaintiff CERTIFICATE OF SERVICE This is to certify that I, Pamela J. Crum, a legal assistant in the law - 711t, offices of Peters & Wasilefski, have this day 2010, served a true and correct copy of the foregoing ORDER TO SETTLE, DISCONTINUE AND END upon all parties by depositing same in the United States mail, first class, postage prepaid, addressed as follows: Robert E. Cherwony, Esquire KRAFT & KRAFT, P.C. 1311 Spruce Street Philadelphia, Pennsylvania 19107 (Attorney for Plaintiff) Pamela J. Crum