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Amco Insurance Company v. Inspired Technologies, Inc

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Submitted: March 16, 2011

Before SMITH, ARNOLD, and SHEPHERD, Circuit Judges.

3M Company (“3M”) sued Inspired Technologies, Inc. (ITI) for allegedly unfair and false advertising, in violation of the Lanham Act, 15 U.S.C. §§ 1051, et seq., and the Minnesota Uniform Deceptive Trade Practices Act (MDTPA), Minnesota Statutes §§ 325D.43-325D.48. ITI tendered defense of the lawsuit to its liability-insurance carrier, AMCO Insurance Company (“AMCO”), and the lawsuit ultimately settled. Following the settlement between 3M and ITI, AMCO filed the instant declaratory-judgment action against ITI, seeking a declaration that it did not owe ITI any duty to defend or indemnify because the insurance policy’s knowledge-of-falsity exclusion excluded the 3M suit from coverage. The district court agreed with AMCO and granted the insurer affirmative summary judgment, concluding that the exclusion barred coverage. ITI presently appeals, and, for the reasons that follow, we reverse and remand.

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