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COURT DECISION CHALLENGED BY QUAKER STATE INSURANCE SUBSIDIARY

 OIL CITY, Pa., Aug. 6 /PRNewswire/ -- Heritage Life Insurance Company, a unit of Quaker State Corporation (NYSE: KSF) will vigorously oppose what it described as "an outrageous and unsupported" award made by a jury in a California court that requires Heritage to pay $18.3 million in civil and $1 million in punitive damages to the owners of Wescal Credit Insurance Agency, it was announced today.
 Frank J. Cordon, president and chief executive officer of Heritage Insurance Group, Inc., the Quaker State subsidiary which operates Heritage Life Insurance Company, said, "Heritage will appeal the decision and will avail itself of every appellate recourse to reverse completely this incredible ruling. During the seven years that Wescal represented Heritage, it generated less than $200,000 in commissions. This award was made by a run-away jury, and nothing in the evidence supports an award even remotely close to $19 million."
 The charges against Heritage Life were brought by two plaintiffs individually and doing business as Wescal Credit Insurance, a general agent of Heritage Life from 1984 to 1990. The complaint alleges breach of contract and interference with prospective economic advantage. The trial was conducted in the Superior Court for the State of California in Orange County.
 Herbert M. Baum, recently elected chairman and chief executive officer of Quaker State said, "Heritage Life Insurance Company has the economic strength to pay the full claim if it should be upheld. This outrageous decision will not impact Quaker State's plans to increase advertising and promotion of its branded motor oil products and to regenerate profitable growth."
 Cordon said, "The ruling will have no impact on the ability of Heritage Life Insurance Company to maintain normal business operations and to provide credit insurance policies through general agents to auto dealers and other customers across the country. One of the strengths for Heritage customers is that the company is owned and backed by the strong financial and credit rating of Quaker State Corporation."
 -0- 8/6/93
 /CONTACT: Benton H. Faulkner of Quaker State, 814-676-7877/
 (KSF)


CO: Heritage Life Insurance Company; Quaker State Corporation;
 Wescal Credit Insurance Agency ST: Pennsylvania, California IN: INS OIL SU:


KC -- PG019 -- 0398 08/06/93 16:04 EDT
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Publication:PR Newswire
Date:Aug 6, 1993
Words:366
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