Business Law Critical Thinking Group Assignment.

PAJ, Inc., a jewelry company, had a commercial general liability (CGL) policy from Hanover Insurance Company.

The policy required PAJ to notify Hanover of any claim or suit against PAJ “as soon as practicable.” Yurman Designs sued PAJ for copyright infringement because of the design of a particular jewelry line. Because PAJ did not realize that the CGL policy had a clause that covered infringement claims, it did not notify Hanover of the suit until four to six months after litigation began. Hanover contended that the policy did not apply to this incident because the late notification had violated its terms. PAJ sued Hanover, seeking a declaration that it was obligated to defend and indemnify PAJ.

1. The first group will decide whether Hanover had an obligation to provide PAJ with legal assistance.

2. The second group will determine the effect that PAJ’s late notice to the insurance company had on its ability to provide assistance and mount a defense. Should the court require the insurance company to indemnify PAJ in this situation? Why or why not?