An Argo Group entity has no obligation to defend a pool construction company in a trademark infringement dispute, a federal appeals court said on Monday to uphold a court decision.
The U.S. District Court in Sacramento, California, correctly dismissed an argument from Sacramento-based Premier Pools Management Corp. that the underlying trademark infringement lawsuit triggered an obligation on the part of Argo Group's Colony Insurance Co. "To defend the company for" personal and advertising harm "caused by the PPMC's alleged difference, use of another's 'advertising idea,' and use of another's" slogan, "the decision of the 9th U.S. District Court in San Francisco Premier Pools Management Corp. v Colony Insurance Co.
"The PPMC failed to file the amended complaint which contained the relevant, new allegations of reduction, so the Colony had no obligation to investigate these allegations or to defend the PPMC against those a matter of law, ”said the decision, with three judges appealing to the Judicial Panel, which noted that it had ruled against the PPMC on the obligation to defend the matter in an earlier opinion in the same case.
"And the plaintiff in trademark infringement accused PPMC of infringing the company name" Premier Pools, "which the plaintiff repeatedly characterized as a trademark ̵
The panel also considered that because the colony did not owe PPMC an obligation to defend, the company's damages and allegations of bad faith failed as a matter of law.
Lawyers in the case did not respond to a request for comment.