Business Services Industry

Legal Briefs: Public policy doesn't preclude coverage of punitives.(discusses law suits in Washington and Texas related to insurance)

Business Insurance, February, 2002

In a case of first impression in the state, the Supreme Court of Washington ruled that liability coverage in a commercial general liability insurance policy for malicious prosecution and punitive damages did not violate Washington public policy. The Fluke Corp., a manufacturer of electrical equipment, had a CGL policy with Hartford Accident & Indemnity Co.

The coverage obligated Hartford to pay damages because of ``personal injury,'' which was defined in part as ``injury, other than `bodily injury,' arising out of....malicious prosecution.'' In May 1988, Fluke sued Talon Instruments and its president for patent infringement, and Talon and its president, in turn, sued Fluke for malicious prosecution. Fluke tendered the defense of that suit to Hartford, which...

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