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Insured Record Company v. Insurer

April 2006

Sedgwick secured summary judgment dismissal of our client, a major insurance company, from a $10 million coverage action asserted by the world's largest record company.  The insured alleged bad faith and sought a declaratory judgment following our client's decision not to defend it in a lawsuit brought against it by a rival record label.  The rival company claimed that the insured blocked the release of an album by a famous rap artist and his producer.  Sedgwick filed for summary judgment on grounds that our client owed no duty to defend plaintiff because, among other reasons, the underlying action did not allege an "occurrence" or "advertising injury" triggering a defense obligation.