By: Derek Hawkins//April 11, 2018//
WI Court of Appeals – District II
Case Name: West Bend Mutual Insurance Company v. Ixthus Medial Supply, Inc., et al.
Case No.: 2017AP909
Officials: Reilly, P.J., Gundrum and Hagedorn, JJ.
Focus: Insurance Claim –Exclusion
West Bend Mutual Insurance Company insured Ixthus Medical Supply, Inc. and Karl Kunstman, Ixthus’ principal (collectively, Ixthus) under a commercial general liability (CGL) policy and a commercial umbrella policy. The sole question on appeal is whether the policies’ “knowing violation” exclusion applies and relieves West Bend of its duty to defend Ixthus in connection with a trademark/trade dress infringement case Abbott Laboratories and two of its affiliates (collectively, Abbott) filed against Ixthus in federal court in New York. Concluding that the exclusion applied because the New York complaint includes allegations of willful misconduct, the circuit court granted summary judgment in favor of West Bend and declared that West Bend had no duty to defend or indemnify Ixthus. We disagree and conclude Abbott’s complaint alleges facts sufficient to trigger the duty to defend. We therefore reverse the judgment and remand for further proceedings.