This case requires us to construe an exclusion barring coverage for "any claim
arising out of any misappropriation of trade secret" in a professional liability
policy issued by the defendant, National Union Fire Insurance Company of
Pittsburgh, Pennsylvania (National Union), to the plaintiff, Uniscribe
Professional Services, Inc. (Uniscribe). After settling a claim with a client from
whom sensitive documents were taken while in Uniscribe's care, Uniscribe commenced
an action seeking a declaratory judgment that National Union had a duty to defend
and indemnify Uniscribe for the settlement. National Union moved for
judgment on the pleadings, see Mass. R. Civ. P. 12(c), 365 Mass. 754 (1974),
arguing that its policy excluded claims arising out of the misappropriation of
trade secrets (intellectual property exclusion), wrongful acts committed with the
knowledge that it was a wrongful act (knowing wrongful acts exclusion) and
criminal acts (criminal acts exclusion). Uniscribe opposed National Union's motion
and moved for partial summary judgment
Supreme Judicial Court of Massachusetts,
Suffolk.
Joseph F. FINN, Jr., assignee, [FN1]
v.
NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PENNSYLVANIA, & another.
[FN2]
SJC-10153
October 8, 2008.
December 2, 2008.
Contract, Insurance. Insurance, Coverage, Construction of policy, Intellectual
property exclusion. Trade Secret.
CIVIL ACTION commenced in the Superior Court Department on July 1, 2005.
The case was heard by Geraldine S. Hines, J., on motions for judgment on the
pleadings and for partial summary judgment.
The Supreme Judicial Court granted an application for direct appellate review.
Steven L. Schreckinger (Jane M. Guevremont with him) for the plaintiff.
John D. Hughes for the defendants.
Present: Marshall, C.J., Greaney, Ireland, Spina, Cordy, & Botsford, JJ.
SPINA, J.
