RV company files suit over reimbursements on canceled service contracts

By Mark Payne | Dec 10, 2014

A group of recreational vehicle dealers is suing an Ohio-based claims processor over allegations it is not providing reimbursements required under an agreement.

FreedomRoads LLC filed suit Dec. 1 in Cook County Circuit Court against Dimension Services Corp. alleging breach of contract.

According to the complaint, FreedomRoads, which operates a large network of recreational vehicles and owns several subsidiaries that are also listed as plaintiffs in this suit, claims Dimension Service has not been properly reimbursing it for money owed to it for cancellations of vehicle service contracts.

The two companies had entered into an agreement in which FreedomRoads would pay the defendant for selling extended vehicle service contracts to customers. Under the “No cancellation charge-back agreement,” the suit says that if a customer were to cancel, the defendant would reimburse the plaintiff for any reimbursements the plaintiff had to pay to customers for cancellation.

Dimension apparently notified the plaintiff that it miscalculated the reimbursements and overpaid FreedomRoads $64.499.75, the suit states. Dimension allegedly refuses to make additional or future payments, which FreedomRoads alleges is not a valid excuse.

FreedomRoads claims Dimension misinterpreted the coverage limit in the "No charge-back agreement" and owes it more than $540,000 for refunds that it had to pay back for refunds it had to give to customers for vehicle service contracts.

The plaintiffs are represented by David M. Rownd, James L. Oakley and Caroline Ackerman of Thompson Coburn LLP in Chicago.

Cook County Circuit Court case number: 14CH19163.

This is a report on a civil lawsuit filed in Cook County Circuit Court. The details in this report come from an original complaint filed by a plaintiff. Please note, a complaint represents an accusation by a private individual, not the government. It is not an indication of guilt and represents only one side of the story.

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