Insurance Company Must Defend South Carolina Episcopal Church In Trademark Suit By Breakaway Diocese

In The Episcopal Church in South Carolina v. Church Insurance Company of Vermont, (D SC, Jan. 6, 2014), a South Carolina federal district court held that an commercial liability insurance policy issued by Church Insurance Company of Vermont requires the insurance company to defend The Episcopal Church in South Carolina (TEC-SC) in a state court lawsuit against it by a break-away diocese over which group has the right to use the Episcopal Church trade names, trademarks, services, and emblems. (See prior posting.) The court also held that the insurance company had breached its contract in refusing to defend TEC-SC, but that bad faith had not been shown. TEC-SC issued a press release announcing the decision.