Alliance Files Court Briefs On Behalf of Agents, Brokers

July 5, 2005

  • July 10, 2005 at 5:20 am
    Marty Fox says:
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    North American Specialty Insurance Company (NAS) issued a CGL policy to a musical band, Third Blind Eye. NAS’ CGL had a Field of Entertainment Limitation Endorsement (FELE) that excluded claims for (1) invasion, infringement or interference of the right to privacy or publicity; (2) copyright or trademark infringement; (3) defamation, except for claims arising out of a public appearance unrelated to professional entertainment work; (4) plagiarism, piracy or unfair competition regarding unauthorized use of others’ ideas or works; and (5) breach of contract regarding professional entertainment work.

    Third Blind Eye fired Kevin Cadogan. Cadogan filed a lawsuit naming Third Blind Eye as a defendant and alleging trademark infringement and misappropriation of his name and likeness. Third Blind Eye tendered its defense to NAS. NAS denied coverage. Third Blind Eye settled Cadogan’s suit for more than $3 million and filed a lawsuit naming NAS, its business manger and insurance broker, Near North Entertainment Insurance Services, LLC (Near North) as defendants. The complaint alleged Near North negligently failed to obtain E&O insurance or advise it about the FELE. The trial court and the appellate court ruled that NAS had a duty to defend. Then NAS settled its coverage dispute with Third Blind Eye.

    To read the full text of the opinion in Third Eye Blind, Inc. v. Near North Entertainment Insurance Service., No. A102803 (Cal. 1st App. Dist. March 29, 2005), go to: http://caselaw.lp.findlaw.com/data2/californiastatecases/a102803.doc or go to:[PDF File] http://caselaw.lp.findlaw.com/data2/californiastatecases/a102803.pdf



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