Coverage Arose Despite Misleading Pleading

In denying National Union Fire Insurance Co. of Pittsburgh, PA’s Motion to Dismiss, the court in Market Lofts Community Association v. National Union Fire Insurance Company Of Pittsburgh, PA, No.: CV15-03093-RGK(MANx), 2015 U.S. Dist. LEXIS 100691 (C.D. Cal. July 30, 2015) granted Plaintiff, Market Lofts Community Association (“the Association”) Motion for Partial Summary Judgment, finding it was entitled to defense in the cross-complaint asserted against it by a developer.  

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Extrinsic Evidence Ignored by District Court

The district court, refusing to consider extrinsic evidence in direct contravention of settled rules of California policy construction, determined that the declaratory relief claims for invalidity, non-infringement, and unenforceability, did not assert facts sufficient to evidence potential coverage within the policies, "disparagement" or "abuse of process" offenses.

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Invasion of Privacy Claims Properly Articulated

The court determined that Big 5 satisfied the self-insured retention under both the Hartford and Zurich policies in a zip code liability action and met the requirements to show a potential for coverage under the policies under the pertinent coverage for "personal and advertising injury" for "oral or written publication, in any manner of material that violates a person's right of privacy." 

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Total Call No Bar to Implicit Disparagement Coverage

The court's prior finding was thus unaffected when it concluded implicit disparagement based on allegations that E.piphany (Infor's predecessor) "falsely stated that it was the ‘only' producer of ‘all Java' and ‘fully J2EE' software solutions, which was an ‘important differentiator' between competing products, even though some competitors offered products with these exact features."

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