Holy Stromboli! Grocer Loses Coverage and Bad Faith Battle Against Excess Carrier

In Charter Oak Insurance Company v. Maglio Fresh Foods, No. 14-4094, 2015 U.S. App. LEXIS 19268 (3d Cir. Nov. 4, 2015), the Third Circuit held that because the underlying lawsuit did not present a covered “advertising injury” claim, and there was no exhaustion of the primary policy, the insured’s excess carrier could not have acted in bad faith.

As background, the underlying plaintiff, Leonetti’s, a supplier and competitor of Maglio Fresh Foods, brought a lawsuit against Maglio. First, the “Maglio brand claim” alleged that …

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