Laptop Lawsuit Update (4/21)

The laptop lawsuit has given rise to another lawsuit. Graphic Arts Mutual Insurance Company has filed what's called a declaratory judgment action in the U.S. District Court for the Eastern District of Pennsylvania (Civil Action No. 10-1707). (A declaratory judgment action is one in which a party to a contract such as an insurance policy may ask the court to "declare" the rights and other legal obligations of any interested party.) The insurance company issued a commercial general liability policy to the school district that covers the period from July 2009 to July 2010. When the Robbins family filed the complaint in its lawsuit, the school district tendered the complaint to the insurance company seeking insurance coverage. In response, the insurance company issued to the school district a reservation of rights asserting the company's position that the Robbins lawsuit is not within the scope of coverage of the insurance policy. The insurance company also informed the district of its intention to file the declaratory judgment action, and it agreed to continue to assist in the funding of the lawsuit pending a judicial declaration adjudicating the insurance coverage dispute. In its complaint, the insurance company claims that the allegations in the Robbins lawsuit, such as invasion of privacy, theft of private information, and unlawful interception of electronic communications, are outside the scope of the insurance policy and that the insurance company has no duty to defend or indemnify the school district.