We Do Graphics, Inc. v. Mercury Casualty Co.

We Do Graphics, Inc. (WDG) sued its insurer, Mercury Casualty Company (Mercury) after Mercury refused to defend and indemnify WDG in a third party action. Mercury moved for summary judgment, and the trial court granted the motion, finding the underlying action did not trigger insurance coverage. WDG argues that at a minimum, Mercury had the duty to provide a defense. We disagree and affirm the judgment.

I

FACTS

On December 1, 2000, Mercury issued a 36-month business liability policy to WDG, a commercial printing business. The policy included coverage for advertising injury, among other provisions.

In June 2001, Stratacom Printed Communication Solutions, Inc., Adgraphics, and Stratacom’s owners, James Majewski and Thomas Majors (collectively Stratacom), filed suit against WDG and Alexander Jakovich. The complaint alleged causes of action against Mercury for misappropriation of trade secrets, violation of the Unfair Practices Act (Bus. & Prof. Code, § 17200 et seq.), unfair competition, breach of fiduciary duty, interference with business relationships, conversion, and specific possession of personal property.

The Stratacom complaint alleged that Jakovich was once a…