On January 24, 2014, Rory Eric Jurman, Avery Dial and André D. Sesler obtained summary judgment in federal court on a contentious insurance coverage / breach of contract case. EmbroidMe.com claimed that Travelers owed EmbroidMe.com more than $400,000 in defense costs that EmbroidMe.com incurred in an underlying copyright infringement suit prior to tendering the defense to Travelers. The Court found that the Traveler's policy only provided coverage for expenses incurred with Travelers permission and knowledge and that the Plaintiff takes nothing. A proposal for settlement was also filed, which should entitle Travelers to recover some of the fees it spent on the case.
In the underlying dispute, EmbroidMe was accused of illegally copying and distributing point-of-sale software written by a company called JCW. EmbroidMe hired counsel, paid over $400,000 in fees and costs and then tendered the claim to Travelers 18 months into the litigation. EmbroidMe won summary judgment on all of the covered claims. Because there were no additional covered claims, Travelers had no indemnity obligation and still paid money to settle the uncovered claims. Despite Traveler’s kind gesture in contributing to indemnity when it had no obligation to do so, EmbroidMe sued Travelers for the $400,000 in fees and costs it incurred prior to tendering the claim.