Santa’s Best Craft v. Zurich American Insurance 

Illinois Appellate Court
Civil Court
Insurance
Citation
Case Number: 
No. 1-09-1634
Decision Date: 
Tuesday, December 21, 2010
District: 
1st Dist.
Division/County: 
Cook Co., 2d Div.
Holding: 
Affirmed.
Justice: 
CONNORS
Plaintiff companies were sued by a competitor for intellectual property infringement and deceptive trade practices, and tendered defense of suit to insurer, which agreed to reimburse Plaintiffs for expenses incurred by their independent legal counsel in defending suit. Court properly granted summary judgment for insurer, as insurer had promptly paid half of legal expenses invoiced while reviewing charges, and court determined that some legal expenses were unreasonable. As underlying suit was not for "advertising injury" thus insurer had no duty to defend. "Advertising injury" requires that "advertisement" was broadcast or published by being widely disseminated, even if notice was directed to a "specific market segment" of the general public. Court properly denied motion for prejudgment interest, as damages were not easily determined nor liquidated. (CUNNINGHAM and KARNEZIS, concurring.)