Plantronics Inc. v. American Home Assurance Company, The Insurance Company of the State of Pennsylvania
Published: Jun. 21, 2014 | Result Date: May 30, 2014 | Filing Date: Jan. 1, 1900 |Case number: 5:07-cv-06038-PSG Summary Judgment – Plaintiff in part
Court
USDC Northern
Attorneys
Plaintiff
Paul T. Llewellyn
(Lewis & Llewellyn LLP)
Defendant
Christopher V. Kendrick
(Haight, Brown & Bonesteel LLP)
Ernest Slome
(Lewis, Brisbois, Bisgaard & Smith LLP)
Facts
American Home Assurance Co. and The Insurance Company of the State of Pennsylvania denied insurance coverage for seven lawsuits filed against Plantronics Inc. between October 2006 and July 2007. Plantronics then sued the insurers for denying coverage. Both sides filed cross-motions for summary judgment.
The underlying lawsuits concerned the use of "Bluetooth Headsets" marketed and manufactured by Plantronics.
Contentions
PLAINTIFF'S CONTENTIONS:
Plantronics claimed that the underlying lawsuits asserted claims of injury due to hearing loss. Plantronics alleged that it paid defendants for commercial general liability policies, which covered damages due to bodily injury. As a result, Plantronics contended defendants had a duty to defend it in the underlying actions, and that its denial constituted a breach of that duty.
DEFENDANTS' CONTENTIONS:
The insurers claimed that the underlying lawsuits concerned the alleged misbranding of Bluetooth headsets. Defendants sought damages for economic injury, but not for any physical injury. The insurers characterized the underlying lawsuits alleged breach of warranty claims. The insurers alleged that they were legally obligated to cover damages brought on by bodily injury. However, because the underlying lawsuits sought damages from economic injury, defendants argued they were not required to provide coverage.
Result
The court determined that the underlying lawsuits triggered the insurers' duty to defend. As such, it entered partial summary judgment in favor of Plantronics. The court then entered summary judgment in favor of the insurers with regard to Plantronics' claim for breach of implied covenant of good faith and fair dealing.
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