Why this lawsuit may End Everything – Auto-Owners Insurance
Thursday, April 6, 2023, the day between Passover and Good Friday, Paparazzi Accessories’ own business insurer filed suit against Paparazzi in U.S. District Court in Utah. Who? Auto-Owners Insurance carries the business insurance policy that covers Paparazzi, LLC for liability, EPL endorsement, and umbrella policies.
Why is Auto-Owners Insurance suing Paparazzi, LLC? They insurance company stated in the filing that the dispute with Paparazzi, LLC is whether or not the company and its founders are covered for knowing violation of rights of another, contractual liability, breach of contract, quality or performance of goods–failure to conform statements, pollution, profit or advantage, criminal acts, property damage, bodily injury, and prior knowledge; or any of these which may be covered but occurred prior to 2019, as Auto-Owners Insurance company has been paying for Paparazzi, LLC’s legal defenses, Auto-Owners Insurance asks the court to issue an opinion that relieves them of the Duty to Defend Paparazzi, LLC and orders Paparazzi to refund to Auto-Owners Insurance all fees for the legal defense.
Paparazzi, LLC is using money from the disputed insurance coverage to pay for the civil litigation defense teams and fees. As Paparazzi is defending five civil class actions and a counterclaim suit, having motions, depositions, responses, etc. is an expensive and heavy workload.
The Auto-Owners Insurance suit incorporates all class-action litigation for which Paparazzi is the defendant. Let’s look at EVERYTHING. Paparazzi, LLC, Misty Kirby, Trent Kirby, Chantel Reeve, and Ryan Reeve are the defendants, again, as they are in the following actions:
- Auto-Owners Insurance Company v. Paparazzi, LLC (Auto-Owners Action)(Utah);
- Tamie Hollins v. Paparazzi, LLC (Hollins Action)(New York*);
- Crystal Johnson et al. v. Paparazzi, LLC (Johnson Action)(North Carolina*);
- Irene Burgess v. Paparazzi, LLC (Burgess Action)(California*);
- Heather Gilbert v. Paparazzi, LLC (Gilbert Action)(Michigan*);
- Lori Teske and Terri Franklin v. Paparazzi, LLC (Teske Action)(Utah); and
- Counterclaim Souza, Carrol, Robinson v. Paparazzi, LLC (Souza Counterclaims)(Utah).
If Auto-Owners Insurance is successful in their lawsuit, Paparazzi, LLC would have to repay part or all of the money Auto-Owners Insurance paid for the defense team of lawyers for Paparazzi, LLC and the founders. How much money would Paparazzi have left to spend on the civil class-action lawsuits and the judgments, if any.
*actions filed outside Utah court have been transferred to U.S. District Court in Utah.
Find on Justia.com: https://dockets.justia.com/docket/utah/utdce/4:2023cv00027/138866
Find on Pacer Monitor: https://www.pacermonitor.com/case/48432621/AutoOwners_Insurance_v_Paparazzi_et_al