Behringer Saws, Inc.
The suit was against Travelers Indemnity Co. of Illinois, Travelers Casualty & Surety Co. dka Aetna Casualty & Surety Co., Travelers Casualty & Surety Co. of America fka Aetna Casualty & Surety Co. of America, and Travelers Casualty & Surety Co. of Illinois fka Aetna Casualty & Surety Co. of Illinois in the Court of Common Pleas of Lancaster County, Pennsylvania, Civil Division, Case No. C1-01-00025. Following the filing of an expert report by David A. Gauntlett, the case was settled on favorable terms. The underlying action arose out of a representation by the underwriters of Travelers that patent infringement lawsuits might fall within the scope of a 1986 ISO Travelers Insurance policy. When a subsequent claim was asserted, a claims representative of Travelers claimed no potential coverage arose. The inconsistency with the underwriter's prior statement was not explained, and the insured was prejudiced because it could have otherwise obtained a patent defense policy had it not purchased the coverage it understood arose under its commercial general liability policy. Further, one could conclude from reading the relevant policy language that the tort of patent infringement might fall within the ambit of the category of wrongdoing described as misappropriation of advertising ideas or style of doing business. Indeed, several courts have recently found it applied to business methods where the patent described an advertising technique which was itself used in a wrongful manner.
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