No Duty To Defend In Disparagement Case.

An insurance company denied patent and trademark liability coverage to a manufacturer of goods and services because the suit did not allege the company disparaged its competitor. The appellate court agreed with the insurance company that it had no duty to defend. The case was eventually heard in the California Supreme Court which held:  “We hold that a claim of disparagement requires a plaintiff to show a false or misleading statement that (1) specifically refers to the plaintiff’s product or business and (2) clearly derogates that product or business.” (Hartford Casualty Insurance Company v. Swift Distribution, Inc. (Cal. Sup. Ct.; June 12, 2014)59 Cal.4th 277, [326 P.3d 253, 172 Cal.Rptr.3d 653].)