Facts

Three lawsuits were filed in San Francisco Superior by adult film actors John Doe, Cameron Adams and Joshua Rodgers, alleging they had contracted the human immunodeficiency virus as a result of performing in adult films produced by Cybernet Entertainment Inc. Cybernet's commercial general liability insurance policy was handled by Seneca Insurance Company Inc. As a result, Seneca sued Cybernet for declaration as to coverage for the underlying lawsuit. Cybernet, in turn, filed a third-party complaint against State Compensation Insurance Fund.

PLAINTIFF'S CONTENTIONS: Cybernet alleged that State Fund issued Cybernet a Worker's Compensation and Employer's Liability Insurance Policy under which State Fund had a duty to defend Cybernet.

DEFENDANTS' CONTENTIONS: State Fund denied Cybernet's claims and moved for summary judgment. Defense argued that it had no duty to defend because Cybernet failed to demonstrate that the underlying plaintiffs were employees and because of Policy Exclusion 5.

Result

State Fund's motion for summary judgment was granted and Cybernet's claims against it were disposed as a result. Cybernet's motion for partial summary judgment was denied.