Insurer's claim of no indemnification obligation is not ripe until underlying litigation is resolved
Farnan, J. Motion to dismiss without prejudice count II of the complaint, seeking a declaratory judgment that Hartford has no duty to indemnify Interdigital in connection with Nokia’s Lanham Act claim, is granted.
The Court concluded that the claim is not ripe for adjudication at this time. Hartford has not established actual harm required to establish adversity since the underlying litigation is still pending. Hartford’s argument that it is harmed by having to defend Nokia’s expensive lawsuit is rejected, the court noting that the duty to defend is separate from the duty to indemnify. Hartford has not demonstrated that a declaratory judgment on indemnification would be conclusive as required by the second Step-Saver prong. The court discerned no prejudice to Hartford if a declaratory judgment on indemnity is deferred.
A copy of the full opinion is available here
