Assurant Companies Win Multimillion-Dollar Verdict in Marketing Agreement Dispute

Assurant Solutions, an Atlanta-based provider of specialty insurance, extended service contracts and other risk management solutions, announced that a Tennessee state court jury has awarded its companies damages in a contract dispute with Progeny Marketing Innovations, a wholly-owned subsidiary of Cendant Corporation.

Assurant Solutions, which is part of Assurant, said a Williamson County Chancery Court jury on Feb. 4 found that Progeny Marketing Innovations (previously known as FISI Madison LLC) of Franklin, Tenn., had breached a 2000 marketing agreement with the Assurant Solutions companies to jointly promote and underwrite certain customer appreciation products.

Assurant Solutions said that while the total amount of the judgment has not been determined, the jury awarded its companies $8 million for a violation of the Tennessee Consumer Protection Act, $15.12 million for breach of contract, $42.61 million for breach of fiduciary duty and conversion and $5 million in punitive damages. Certain additional equitable issues remain for disposition by the Court.

The verdict ended a four-week trial that began Jan. 10, 2005 before Circuit Court Judge Timothy Easter. The company also stated that the verdict is subject to appeal.

Assurant Solutions companies develop, underwrite and market specialty insurance, extended service contracts and other risk management solutions in collaborative relationships with leading financial institutions, retailers, manufactured housing and automobile dealers, utilities and other entities.