Gitano Group, Inc. v. Kemper Group

— Plaintiffs/appellants the Gitano Group, Inc., et al., (appellants), appeal from the judgment entered upon the granting of the motion for summary adjudication of issues made by defendants/respondents the Kemper Group et al., (respondents). Appellant had sued respondents and others for, inter alla, breach of contract in that respondents refused to indemnify and defend appellant in some underlying actions for patent infringement. In respondents’ motion, they asserted that the underlying actions did not fall within the purview of the contract of insurance, and as to some of the appellants, there was no duty owed because they were not named insureds. The trial court agreed, ruling that plaintiffs in the underlying actions suffered no harm from appellants’ use of their patented product in advertising distinct from the harm suffered from appellant’s sale of the infringing product.

For the reasons set forth below, we affirm the judgment.

Factual and Procedural Background

Appellants manufacture, use and market clothing, including denim jeans. Appellants engage in about $17 million worth of advertising a year, including television, magazine, newspapers, trade shows, posters,…