West Bend Mutual Insurance Co. v. Ixthus Medical Supply, Inc.

The Supreme Court affirmed the decision of the court of appeals ruling that the allegations in Abbott Laboratories’ complaint against Ixthus Medical Supply, Inc. alleged a potentially covered advertising injury and, as a result, triggered West Bend Mutual Insurance Company’s duty to defend under the commercial general liability policy West Bend issued to Ixthus, holding that the court of appeals properly concluded that West Bend had a duty to defend Ixthus.The circuit court concluded that, although the allegations in Abbott’s complaint fell within the initial grant of coverage, the “knowing violation” exclusion applied, thereby eliminating any duty West Bend had to defend. The court of appeals reversed, concluding that the knowing violation exclusion did not apply. The Supreme Court affirmed, holding (1) the allegations in the complaint fell within the initial grant of coverage; and (2) neither the knowing violation nor the “criminal acts” exclusions applied to remove West Bend’s duty to defend because the complaint alleged at least one potentially covered claim unaffected by either exclusion. View "West Bend Mutual Insurance Co. v. Ixthus Medical Supply, Inc." on Justia Law