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Case Name | DMS Services, Inc. v. Superior Court of LA County | |
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Date | 05/15/2012 | |
Note | A third-party workers' compensation claims administrator could not compel arbitration of a client's breach-of-contract action pursuant to an agreement between the client and its insurance carrier. | |
Citation | B235819 | |
WCC Citation | WCC 38952012 CA |
DMS SERVICES, INC. v. SUPERIOR COURT OF LOS ANGELES COUNTY DMS SERVICES, INC. et al. , Petitioners, v. THE SUPERIOR COURT OF LOS ANGELES COUNTY, Respondent; ZURICH SERVICES CORP. et al. , Real Parties in Interest. The court ordered arbitration of each of those claims based on an arbitration clause in DMS's workers' compensation insurance agreements with Zurich Insurance. However, Zurich Insurance also required DMS to sign annual deductible agreements, which purported to supersede any deductible endorsement to the workers' compensation policies. Zurich sought more than $3. 5 million in payment from DMS for premiums and reimbursement of workers' compensation insurance claim deductibles. DMS alleged ZSC had breached its obligations as a third party administrator by mishandling claims made against the policies, causing DMS to overpay several claims.
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