UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) March 17, 2009
COMMERCE GROUP CORP.
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(Exact name of registrant as specified in its charter)
Wisconsin 1-7375 39-6050862
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(State or other (Commission File Number) (IRS Employer
jurisdiction of Identification No.)
of incorporation)
6001 North 91st Street, Milwaukee, Wisconsin 53225-1795
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (414) 462-5310
fax: (414) 462-5312
Not Applicable
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(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions:
____ Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
____ Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
____ Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
____ Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
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ITEM 8.01 OTHER EVENTS
On March 17, 2009, Commerce Group Corp. (the "Company") and San Sebastian
Gold Mines, Inc., an affiliate which is 82 1/2% owned by the Company,
delivered a Notice of Intent to commence international arbitration
proceedings against the Government of El Salvador under the Central
America Free Trade Agreement-Dominican Republic ("CAFTA-DR").
The Company contends that the government of El Salvador has frustrated
its efforts to develop its mining interests in the country of El Salvador
in violation of CAFTA-DR. On September 13, 2006, the government of El
Salvador, without justification or any forewarning, revoked the Company's
permits which it had issued for the San Sebastian Gold Mine exploitation
concession and the San Cristobal Mill and Plant, effectively terminating
the Company's right to mine and process gold and silver. On October 28,
2008, the government of El Salvador denied the Company's application to
extend its exploration permits in connection with the New San Sebastian
Exploration License and the Nueva Esparta License. If the matter
proceeds to arbitration, the Company and its affiliate will be claiming
significant monetary damages.
Under CAFTA-DR rules and procedures, the parties have 90 days to resolve
their dispute amicably. If the dispute is not resolved in 90 days, the
Company has the right to commence arbitration proceedings against the
government of El Salvador. The arbitration will be administered under
the Convention on the Settlement of Investment Disputes Between States
and Nationals of Other States and under the Rules of Procedure for
Arbitration Proceedings of the International Centre for Settlement of
Investment Disputes ("ICSID"). ICSID is an affiliate of the World Bank
and is headquartered in Washington, D.C.
FORWARD-LOOKING STATEMENTS
Certain statements in this release, and other written or oral statements
made by the Company, including the use of the words "expect,
"anticipate," "estimate," "project," "forecast," "outlook," "target,"
"objective," "plan," "goal," "pursue," "on track," and similar
expressions, are "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. These forward-looking statements are
subject to known and unknown risks, uncertainties and other factors that
may cause actual results, performance, or achievements of the company to
be different from those expressed or implied. The Company assumes no
obligation and does not intend to update these forward-looking
statements. Among the important factors that could cause actual results
to differ materially from those indicated by such forward-looking
statements include, without limitation: competitive and general economic
conditions, adverse effects of litigation, the timely development and
acceptance of services, significant changes in the competitive
environment, the failure to generate or the loss of significant numbers
of customers, the loss of senior management, increased government
regulation or the company's failure to integrate its acquired companies
to achieve the synergies and efficiencies described in the "Management's
Discussion and Analysis" section of the Company's Form 10-K and other
reports and filings with the Securities and Exchange Commission, which
may be revised or supplemented in subsequent reports on SEC Forms 10-Q
and 8-K.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
COMMERCE GROUP CORP.
(Registrant)
/s/ Christine M. Wolski
Date: March 18, 2009 __________________________________________
By: Christine M. Wolski, Secretary
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