Planet Bingo, LLC v. The Burlington Insurance Co.
In 2008, in London, a battery in a handheld electronic gaming device started a fire. Previously, Planet Bingo, LLC (Planet Bingo) designed the device, had it manufactured by an independent contractor, and then shipped it to a distributor in the United Kingdom (UK). That distributor has now agreed to pay $2.6 million for the damages caused by the fire and has asserted a claim for this amount against Planet Bingo.
In this action, Planet Bingo is suing its liability insurer, the Burlington Insurance Company (Burlington). According to Planet Bingo, Burlington handled the claim for fire damages negligently and in bad faith, wrongfully failed to defend the claim, and wrongfully denied coverage for the claim. The trial court granted judgment on the pleadings against Planet Bingo and in favor of Burlington, on the ground that the fire occurred outside the “coverage territory” as defined in the policy.
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