Amico

This case presents the issue of whether a liability insurer providing coverage for “advertising injury” was required to defend and indemnify an insured for infringement of “trade dress” that allegedly arose through the insured’s solicitation of a single customer through a competitive bidding process with a product specifically designed for that customer. When the appellant, American Motorists Insurance Co. (AMICO) refused to provide a defense, Peerless Lighting Corporation (Peerless) filed an action for declaratory relief. The trial court granted summary judgment in favor of Peerless on the ground AMICO had a duty to defend as a matter of law. However, after a bench trial, the court concluded AMICO had no duty to indemnify Peerless for the $195,000 it paid to settle the underlying suit.

With respect to “advertising injury” coverage, the policy only provided coverage for offenses “committed in the course of advertising . . . goods, products, or services.” Because, under the specific facts of this case, there is no evidence the offense (infringement of trade dress) was committed “in the course of advertising” as that phrase is commonly and reasonably understood, we…