High Point Design, LLC v. LM Insurance Corp., No. 16-1446 (2d Cir. 2018)Annotate this Case
After Liberty refused to provide High Point a defense pursuant to the terms of insurance policies providing coverage for advertising injuries, the district court granted High Point's motion for partial summary judgment. The underlying litigation stemmed from Buyer's Direct's claim that High Point's Fuzzy Babba slipper infringed on the Snoozie's design patent.
The Second Circuit agreed with the district court that as used in the counterclaims and with the additional context of the discovery demands in the underlying litigation, the term "offering for sale" includes advertising, such that Liberty owes High Point a defense. However, the court held that Liberty's duty to provide a defense did not arise until High Point provided Liberty with discovery demands served in the underlying litigation. Therefore, the district court vacated the award of damages and remanded for the district court to determine the amount of legal fees incurred from that point forward.