District Court Denies Policy Coverage

Tuesday, October 10, 2017

U.S. District Court Judge Catherine C. Blake granted summary judgment for defendant Ohio Security, finding Ohio Security did not have a duty to defend plaintiff Linq in an underlying lawsuit, Sprint Solutions, Inc. v. Unwired Solutions, Inc.  In that suit, Spring accused Linq of federal trademark infringement, among other claims.  Ohio Security had agreed to defend and indemnify Linq for damages caused by “personal and advertising injury,” which the insurance policies defined as including injury “arising out of” “oral or written publication, in any manner, of material that slanders or libels a person or organization or disparages a person’s or organization’s goods, products, or services.”  Judge Blake found that Sprint’s mere allegations of reputational harm and that Linq phones are cheaper than those sold by Sprint did not establish disparagement under the policies.  Unwired Solutions, Inc. v. Ohio Sec. Ins. Co., 247 F.Supp.3d 705 (D. Md. 2017).