By: Derek Hawkins//May 9, 2017//
WI Court of Appeals – District III
Case Name: Country World Media Group, Inc. v. Erie Insurance company
Case No.: 2016AP1343
Officials: Stark, P.J., Hruz and Seidl, JJ
Focus: Insurance Coverage
Country World Productions, Inc., (CWP) appeals a judgment dismissing its insurer, Erie Insurance Company, from this case. The circuit court determined Erie’s insurance policy did not cover claims made against CWP by Country World Media Group, Inc., (Media) because the property that Media’s complaint alleged was damaged—specifically, “television shows, master copies and field footage”—constituted electronic data and was therefore excluded from the policy’s definition of property damage. The court therefore concluded Erie had no duty to defend CWP. We conclude Media’s complaint arguably alleged damage to both tangible, physical property—that is, the videotapes on which the television shows, master copies, and field footage were recorded—and the intangible electronic data stored on those tapes. Because Erie’s policy covers claims for damage to tangible property, Erie had a duty to defend CWP against all of the allegations in Media’s complaint. It is undisputed that, if Erie had a duty to defend CWP, it breached that duty by refusing to provide a defense. We therefore reverse the judgment dismissing Erie from this case. We remand for the circuit court to enter a declaratory judgment in CWP’s favor on the duty-to-defend issue and to determine the damages CWP is entitled to recover as a result of Erie’s breach