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Insured, Millennium Labs, Inc., brought action against liability insurer, Darwin Select Ins. Co., alleging that the insurer had a duty to defend in two underlying law suits, and that the insurer denied coverage in bad faith. The jury found that the insurer acted in bad faith and rewarded the insured $8.7 million. This case is Millennium Labs., Inc. v. Darwin Select Ins. Co., No. 15-55227, 2017 WL 382345 (9th Cir. Jan. 27, 2017).

The insured had a Miscellaneous Medical Facilities, Professional Employment Practices, and General Liability Insurance Policy from Darwin. The policy covered claims “alleging Personal or Advertising Injury caused by an offense that takes place during the policy period” and defined Personal and Advertising Injury as “injury, other than bodily injury, arising out of . . . oral or written publication, in any manner that slanders or libels a person or organization or disparages a person’s or organization’s goods, products or services”. The policy’s coverage included “the right and duty to defend any such Claim brought against” Millennium Labs. The policy period was listed as December 1, 2011 to December 1, 2012.

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