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Breach of Contract
Insurance Bad Faith
Coverage Denied

Multistate Legal Studies, Inc. v. State Farm Fire and Casualty Company

Published: Dec. 11, 1993 | Result Date: Nov. 29, 1993 | Filing Date: Jan. 1, 1900 |

Case number: BC020380 –  $0

Judge

Ronald E. Cappai

Court

L.A. Superior Central


Attorneys

Plaintiff

Leon Kaufman

Jonathan B. Lappen


Defendant

Michelle R. Press

Lance Orloff


Experts

Plaintiff

G. Jon Stuehling
(technical)

Defendant

Robert C. Baker
(Baker Keener & Nahra LLP) (technical)

Gene P. Irizarry
(technical)

Facts

Plaintiff owns PMBR multistate bar examination preparation courses. Plaintiff was sued by National Conference of Bar Examiners in 1990 for copyright infringement. Plaintiff tendered the NCBE suit to Defendant State Farm for defense and indemnity under a business office policy. State Farm denied coverage. Plaintiff sued for breach of contract and bad faith. Judge Robert H. O'Brien sustained State Farm's demurrer without leave to amend and dismissed the suit. Plaintiff appealed, and the Court of Appeal affirmed the breach of contract cause, agreeing that the policy provided no coverage for copyright infringement. The Court, however, reversed on the bad faith cause, holding that the Plaintiff had stated a claim based on the State Farm agent's alleged misrepresentation that the policy would cover copyright coverage.

Settlement Discussions

Defendant contends they made no offers and Plaintiff's demand is confidential.

Damages

Attorney fees paid to defend and money paid in settlement of the NCBE lawsuit.

Deliberation

1.75 hours

Poll

10-2

Length

4 days


#112469

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