When a restaurant owner was sued for broadcasting DirecTV and paying only residential subscription rates instead of higher commercial subscription rates, the owner could not seek coverage under the insurance policy. The policy protected against suits for libel, slander, or defamation, and even though DirecTV had alleged that the owner had damaged its reputation, the owner was not alleged to have made any statement, and therefore the facts did not indicate any act of libel, slander, or defamation entitling the owner to a defense of the suit.
Martinsville Corral, Inc. owns two Texas Corral restaurants in Indiana. In December 2013, Society issued an insurance policy to MCI that provided general business liability coverage. MCI also purchased additional coverage under an “Employment-Related Practices Liability Endorsement.” The Endorsement requires Society to cover MCI for “damages resulting from a ‘wrongful act’ to which the policy applies.” Continue reading