Facts

Lexington Insurance Co. and several other plaintiffs filed this action seeking a declaration that they were not obligated to defend or indemnify MGA Entertainment Inc. in connection with an underlying action brought against MGA.

Lexington issued general liability policies to MGA, which contained an exclusion barring coverage for advertising injury. Lexington filed a motion for summary judgment, claiming that the underlying action was exempt from coverage under the policies issued to MGA.

The insurers and MGA filed cross-motions for summary judgment on the duty to defend MGA in the underlying Belair matter.

Result

U.S. District Judge Shira A. Scheindlin granted Lexington's motion for summary judgment. The court also determined that Nation Union owed MGA a duty to defend and granted partial summary judgment in favor of MGA. The remaining insurers did not have a duty to defend and were granted summary judgment.