Schaefer/Karpf Productions v. CNA Ins. Companies

[Opinion certified for partial publication. [*] ]

OPINION

JOHNSON, J.

Plaintiff Schaefer/Karpf Productions (Schaefer) appeals from the judgment in favor of defendant CNA Insurance Companies (CNA) determining Schaefer did not suffer "property damage" within the terms of the comprehensive general liability policies CNA issued to its insureds. We affirm.

Schaefer produced a television special for children entitled The Best Christmas Pageant Ever. After the show was aired on network television it was released on videotape for sales to schools, religious and civic organizations and the general public.

In 1992, Scholastic, Inc., a leading marketer of children's educational materials, ordered 32,500 videotapes of the The Best Christmas Pageant Ever. Schaefer contracted with The Video Company (TVC) to duplicate the show onto videotapes. TVC duplicated the show on tapes it purchased from the Matrix Video Duplication Corporation (Matrix). Some of the tapes Matrix sold to TVC were used tapes returned to Matrix by Cinderella Distributors, Inc., a distributor of pornographic films. TVC proceeded to produce the 32,500 videotapes of The Best Christmas Pageant Ever on the stock provided by…