Manhattan Beach-based Skechers USA Inc. is suing an insurer for at least $3 million for allegedly breaching a contract by not paying for the footwear company’s defense against Easy Spirit’s federal lawsuit claims that Skechers, with its Commute Time shoes, copied the design and name of Easy Spirit’s Traveltime women’s slip-on shoes.
The Los Angeles Superior Court lawsuit was brought Monday against HDI Global Insurance Co., also seeking punitive damages, a declaration of the rights and obligations of the parties under the policies and an injunction against further alleged unfair competition.
An HDI Global representative did not immediately reply to a request for comment.
HDI issued policies to Skechers from Sept. 2017 to Sept., 2020, the suit states. In April 2019, Easy Spirit sued Skechers, asserting damage claims that fall within the policies’ coverage for personal and advertising injury, including claims for alleged infringement of Easy Spirit’s trade dress and slogan in Skechers’ advertisement, the suit states.
HDI has failed in its obligations under the policies to pay for a legal defense to Skechers in the Easy Spirit action, according to the suit.
“As a result of HDI’s breach of its obligations … Skechers has been improperly forced to bear substantial fees and costs in the defense of the Easy Spirit action and to pay other amounts properly paid by HDI under the policies,” the suit states.