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Partial Payment for Trade Dress, Patent Lawsuit is Bad Faith

The court found bad faith as a matter of law for insurers' purported defense of a mix trade dress/patent infringement lawsuits where only trade dress claims were potentially covered through its payment of only 15% of the outstanding fees. 

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CHOICE OF FORUM

Choice of Law Admission of Extrinsic Evidence Insurer Allocation Pre-Tender FeesStatute of Limitations
Balancing the competing interests of the statesFacts set forth in the pleadings aloneIf one claim is potentially covered, must defend entire suitRecoverable10 Years
Metropolitan Prop. & Cas. Ins. Co., 836 So. 2d 347, 350 (La. Ct. App. 2002)Prestenbach v. Badeaux, 865 So. 2d 180, 182 (La. Ct. App. 2003)Jensen v. Snellings, 841 F.2d 600, 612 (5th Cir. 1988)American Safety & Risk Servs. v. Legion Indem. Co., 153 F. Supp. 2d 869, 875-78 (E.D. La. 2001)
Peavey Co. v. M/V ANPA, 971 F.2d 1168, 1172 (5th Cir. 1992)
Transcon. Pipe Line Corp. v. Nat'l Union Fire Ins. Co. of Pittsburgh, Penn., 378 F. Supp. 2d 729, 739 (M.D. La. 2005)		(C.C. Art. 2221)
Pre-Judgment Interest Late Notice Public Policy Bar Independent CounselAtty's Fees/Decl. Relief Action
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