The Aluminum Trailer Co. v. Westchester Fire Ins. Co.

Dist. Ct. did not err in dismissing plaintiff-insured’s claim seeking declaration that defendant-insurance company had duty to indemnify and defend plaintiff in underlying lawsuit in which plaintiff was sued for breach of contract and interference with business expectations, where plaintiff was accused of manufacturing and selling knock-off trailer by using underlying plaintiff’s designs. Relevant policy issued by defendant provided coverage against liability because of “advertising injury,” which included trade dress infringement claims. Dist. Ct. could properly find that defendant was not required to indemnify or defend plaintiff in underlying claim against plaintiff, where underlying lawsuit did not allege infringement of trade dress in plaintiff’s advertising. While plaintiff asserted that instant action could proceed because underlying complaint could be construed to plausibly allege trade dress infringement claim, Ct. of Appeals found that there were no facts in underlying lawsuit that could be construed to support assertion that relevant injury stemmed from plaintiff’s alleged advertisement. Fact that underlying lawsuit alleged that plaintiff had removed underlying plaintiff’s logo and inserted plaintiff’s logo on trailer did not require different result.