Category: Duty to Defend

On August 14, 2018, the district court for the Northern District of California granted summary judgment for three insurance companies in a declaratory relief action and denied the insured’s cross-motion. The insured was a manufacturer of coconut oil products which had been sued in a putative class action that alleged the insured falsely and deceptively advertised its products as healthy when, in fact, the products caused detrimental health effects, including impaired endothelial function. The insurers had accepted the defense of the class action and were continuing to pay defense costs for the lawsuit. The insurers sued for declaratory relief and also sought reimbursement of their defense costs.