Judge Gives Nod to Safelite to File Counterclaim Against Diamond Triumph

In a recent ruling, Judge Munley of the United States District Court for the Middle District of Pennsylvania granted Ohio-based Safelite Glass Corp.’s motion to file new counterclaims and defenses against Diamond Triumph in the Diamond Triumph Auto Glass Inc. versus Safelite Glass Corp. litigation.

The amended counterclaim states that Diamond Triumph used allegedly illegal and improper “push payments,” including commercial bribery, such as gift cards, to induce various insurance agents to refer or recommend auto glass customers to Diamond Triumph. Safelite seeks damages, a declaration that the payments were illegal and an injunction to stop Diamond Triumph from using push payments.

“Safelite will continue to vigorously defend itself and will, with equal vigilance, prosecute its counterclaims,” said Safelite General Counsel Mark Smolik. “Once the discovery process has been completed we would expect to seek dismissal of all claims against Safelite and recover damages incurred as a result of Diamond Triumph’s conduct.”

Diamond Triumph has 10 days from the court’s April 22, 2004 order to respond to the counterclaim.

Safelite Group is a provider of property and casualty claims management solutions and auto glass products and services. Safelite Group was formed in October, 2003 and is the parent company for Safelite AutoGlass, a provider of auto glass repair and replacement services.