Yu

FACTS AND PROCEDURAL HISTORY

Yu is the owner of an Anaheim hotel that initially operated as a Candlewood Suites through a licensing agreement (Licensing Agreement) with Holiday Hospitality Franchising, Inc. (HHF). HHF previously had entered into a master agreement with Six Continents, Inc. (Six Continents) which entitled HHF “to license Proprietary Rights for use in Candlewood Suites® hotels and . . . succeed[] to the rights of Candlewood and [Six Continents] with respect to [the Licensing Agreement with Yu].” Sequoia issued Yu a general liability insurance policy (Policy) covering all claims arising from hotel operations, including claims for “advertising injury,” defined as “[t]he use of another’s advertising idea in your ‘advertisement’; or [¶] . . . [i]nfringing upon another’s copyright, trade dress or slogan in your ‘advertisement’.”

2 The Licensing Agreement required Yu to name HHF as an “additional insured” by using a standard endorsement added to her general liability policy. Consequently, the Policy included endorsement CG2026, which listed HHF as an additional insured. Two other endorsements, discussed below, also were part of the Policy and specifically limited the…