Insurance Co. Ordered To Pay Marker Co. $2.8M For Defense

Law360 (November 12, 2019, 11:04 PM EST) -- An insurer must pay roughly $2.8 million to cover the costs of an art marker company's defense in a trademark infringement suit in Oregon, an Illinois federal judge ruled on Tuesday, citing the insurer's "unreasonable and vexatious conduct" under Illinois insurance law.

Selective Insurance Co. of the Southeast's denial of coverage to Creation Supply Inc. after a competitor sued the marker company and its president, John Gragg, in 2012 drew the judge's ire. U.S. District Judge Charles P. Kocoras found Selective's conduct was "vexatious and unreasonable," and pointed to Selective Insurance attorney David Hahn's determination that Creation Supply and Gragg did infringe...

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