Avery Dennison Corp. v. Allendale Mutual Insurance

MEMORANDUM **

Avery Dennison Corporation appeals the district court’s summary judgment in favor *482 of Allendale Mutual Insurance Company in Avery Dennison’s suit for breach of a contract of insurance and breach of an implied covenant of good faith and fair dealing. The district court held that Avery’s claim was not covered by Allendale’s insurance policy and that there was no evidence of bad faith. Avery Dennison appeals the district court’s ruling. Allendale cross-appeals the district court’s dismissal of its request for sanctions against Avery Dennison. We affirm the district court’s decisions on both the appeal and cross-appeal.

The Main Appeal

We will not repeat most of the facts because the parties are familiar with them. Avery Dennison purchased an insurance policy with special provisions covering crime, including coverage of loss or damage to “Covered Property” caused by employee dishonesty. “Covered Property” is defined in the policy as “money,” “securities” and “property other than money or securities.” The policy further provides:

Avery Dennison made a claim against this policy when one of its employees sold trade secrets to a competitor. Allendale denied the claim…