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) August 16, 2010

                          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
- -------------------------------------------------------------------------
      (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

GOVERNMENT OF EL SALVADOR FILES PRELIMINARY OBJECTIONS TO THE COMPANY'S
CLAIMS

On July 2, 2009, Commerce Group Corp. (the "Company") and San Sebastian
Gold  Mines, Inc., an affiliate which is 82 1/2% owned by the Company
commenced international arbitration proceedings against the Government of
El Salvador ("GOES") under the Dominican Republic-Central America-United
States Free Trade Agreement of 2004 ("CAFTA-DR") and the El Salvadoran
Investment Law by submitting a Notice of Arbitration to the International
Centre for Settlement of Investment Disputes (ICSID).  ICSID registered
the dispute on August 21, 2009. On July 1, 2010, ICSID notified the
parties that the proposed arbitrators accepted their appointments and
that an Arbitral Tribunal was deemed to have been constituted under
ICSID's rules.  On July 29, 2010, the Tribunal conducted an initial
scheduling conference.

On August 16, 2010, GOES filed preliminary objections to the claims of
the Company and its affiliate, seeking dismissal of the arbitration
proceedings. Copies of the Company's Notice of Arbitration and GOES's
filing are available on Commerce Group Corp.'s website
(www.commercegroupcorp.com). Pursuant to CAFTA-DR rules, the Tribunal is
to rule on the objections on an expedited schedule, and will be
scheduling a hearing on the objections for November 15, 2010.  The matter
will proceed to hearing, unless the parties and the Tribunal determine
that the matter can be decided on written submissions.  The Company
believes that El Salvador's objections are completely without merit.

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 and July 2, 2010.


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.



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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/ Edward A. Machulak
Date:  August 19, 2010           _______________________________________
                                 By:  Edward A. Machulak, President


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