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Court Grants O&N Motion Regarding Duty to Defend Under CGL Policy


On November 25, 2009, the United States District Court for the Northern District of California granted O&N client, Align Technology, Inc.’s (ALGN), motion for partial summary judgment on the issue of whether its liability insurer, Federal Insurance Company, owed it a duty to defend in underlying litigation. The court’s decision turned on whether or not an Intellectual Property (“IP”) Exclusion in the Federal policy eliminated all potential for covered liability and, therefore, Federal’s duty to defend. District Court Judge Ronald M. Whyte denied Federal’s motion, and granted Align’s cross-motion, ruling that Federal owed Align a duty to defend an underlying lawsuit and that it had breached that duty.

Click Here to read the Court's ruling.