Sony appeals ruling in CGL case with Zurich, Mitsui

Sony Corp. of America has filed to appeal the March ruling in New York Supreme Court that cleared Zurich American Insurance Co. and Mitsui Sumitomo Insurance Co. from any duty to defend the electronics conglomerate under a traditional commercial general liability policy.

Sony sought coverage under policies underwritten by the insurers after its network platform for Sony PlayStation was hacked in April 2011. According to court records, Sony faced 65 class-actions after the data breach.

Zurich filed suit, seeking a declaration it has no duty to defend or indemnify, and Mitsui filed counter claims seeking the same.

In a bench ruling, New York Supreme Court Judge Jeffrey Oing said CGL policies provide coverage for oral or written publication of materials that violate a person’s right to privacy but the judge’s interpretation of policy language led him to declare coverage could not be triggered by anyone other than Sony. Publication must be from the policyholder, Oing concluded.

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Sony alleges the publication issues is “a requirement not found in the language of the insurance policies” and that Oing came to his conclusion “based on a misreading” of the policies.

Sony was expected to appeal the ruling. Policyholder attorneys interviewed by Advisen said the corporation had good legal grounds for the appeal.

No matter the final outcome of this case, sources have said insurers are already tightening CGL policy language and injecting new electronic data exclusions.

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