Skechers Sues Insurer For Defense Costs In Trademark Dispute
Beach Reporter, The (Manhattan Beach, CA)
Skechers USA Inc. has filed a lawsuit against an insurer for at least $3 million, arguing breach of contract related to its costs in a separate trademark lawsuit brought against the giant shoe company headquartered in Manhattan Beach.
The footwear company, in its suit, said HDI Global Insurance Co. did not pay for its defense in a federal lawsuit about whether Skechers, with its Commute Time shoes, copied the design and name of Easy Spirit's Traveltime women's slip-on shoes.
An HDI Global representative did not immediately reply to a request for comment.
The Los Angeles Superior Court lawsuit was brought Monday against the insurer and also seeks punitive damages, a declaration of the rights and obligations of the parties under the policies, and an injunction against further allegations of unfair competition.
HDI issued policies to Skechers from September 2017 to September 2020, the suit says.
In April 2019, Easy Spirit sued Skechers, asserting damage claims that fall within the policies' coverage for personal and advertising injury, including for allegations of infringement of Easy Spirit's trade dress and slogan in Skechers' advertisement, the suit says.
HDI has failed in its obligations under the policies to pay for a legal defense to Skechers in the Easy Spirit action, according to the suit.
"As a result of HDI's breach of its obligations," the suit says, "Skechers has been improperly forced to bear substantial fees and costs in the defense of the Easy Spirit action and to pay other amounts properly paid by HDI under the policies."