7th Circ. Nixes Insurer's $2.8M Loss For Declining TM Defens

7th Circ. Nixes Insurer's $2.8M Loss For Declining TM Defense


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7th Circ. Nixes Insurer's $2.8M Loss For Declining TM Defense
Law360 (April 26, 2021, 10:17 PM EDT) -- The Seventh Circuit on Monday reversed a lower court's ruling doling out $2.8 million to a marker company after a judge determined that its insurer acted vexatiously in declining to cover its defense in a trademark dispute, with the panel finding that the marker company can't pursue damages beyond its insurance contract.
In a 14-page opinion, a three-judge panel unanimously found that Illinois-based Creation Supply Inc.'s claim against Selective Insurance Company of the Southeast under Section 155 of the Illinois Insurance Code does not pass muster. Section 155 allows an insured party to go after its insurer for extracontractual damages if...

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