Appeal Court Decision 4

 

Appeal Court Decision

Appellant, a developer and companies, challenged a judgment of the Superior Court of Los Angeles (California) dismissing their causes of action against respondent insurers for reimbursement under certain insurance policies.

 

Overview: business lawyers

 

Appellants, a developer and related companies, were sued for trademark infringement and unfair competition after they constructed and began marketing a development using a name owned by another development company. Appellants lost the suit and challenged the order. Subsequently appellants settled with the plaintiff and then sought reimbursement from the policies of three respondent insurers that provided various coverage to appellants. The trial court ultimately dismissed the suit and appellants challenged the decision. The court affirmed in part and reversed in part, holding that the trial court properly sustained the demurrers as to the first two respondents, and as to the third respondent's primary policy, because appellant companies were not named insureds under those policies. The court reversed the judgment with respect to the coverage of appellant developer under the third respondent's umbrella policy, finding that the policy was applicable to the action and that the exclusion for willful conduct did not preclude coverage. The court held that the language of the umbrella policy did not exclude appellant developer as an insured, as a matter of law.

 

Outcome

The court affirmed the trial court's dismissal of claims by appellants, a developer and companies, seeking coverage under policies of two of the respondent insurers and under the primary policy of the third respondent insurer. The court reversed the dismissal of the cause against the third respondent insurer's umbrella policy because the language of the policy did not exclude coverage of appellant developer individually.