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 31, 2011
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
COMPANY SUSPENDS EL SALVADORAN OPERATIONS
On March 31, 2011, Commerce Group Corp. (the "Company") laid off most of
its employees in El Salvador and notified both the government of El
Salvador and officials of the United States of its actions. The Company
does not foresee a time when the government of El Salvador will again
permit mining and the Company cannot continue funding its operations
without revenue.
In 2006, the government of El Salvador revoked the Company's permits, and
made it impossible for Commerce Group Corp. and San Sebastian Gold Mines,
Inc. to continue to mine, or even explore for precious metals. The
Company challenged the government's actions before the International
Centre for Settlement of Investment Disputes, by filing a request for
arbitration on July 2, 2009. On March 14, 2011, the tribunal assigned to
the Company's case declared they had no jurisdiction over the Company's
claims.
Over the past five years, the Company paid wages and social benefits for
its El Salvadoran employees, governmental obligations, and other costs of
maintaining its business in El Salvador with no income from operations.
During this same period, the Company retained an El Salvadoran labor
force on the payroll and put employees to work on improvements
benefitting communities around the site of its operations.
For additional information about the Company's claims against the
Government of El Salvador, reference is made to the Company's 8-Ks that
were filed with the SEC on March 18, 2009, July 2, 2009, July 2, 2010,
August 19, 2010, September 17, 2010 and March 15, 2011.
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 (SEC),
which may be revised or supplemented in subsequent reports on SEC Forms
10-Q and 8-K.
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/ Edward A. Machulak
Date: April 1, 2011 _______________________________________
By: Edward A. Machulak, President
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