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This is the case of Wireless Systems Solutions LLC et al. v. Philadelphia Indemnity Insurance Co., in the U.S. District Court for the North Carolina Middle District.

A wireless technology company based in North Carolina was hit with a $12.5 million arbitration award for stealing a client's trade secrets, and the company says its insurer Philadelphia Indemnity Insurance Co. breached its policies by refusing to pick up the tab.

Wireless Systems Solutions is represented by Richard L. Pinto, Deborah J. Bowers, and Adam L. White of Pinto Coates Kyre & Bowers PLLC, and on October 11^th they filed Wireless’ complaint seeking declaratory relief such that plaintiffs are entitled to coverage for the underlying trade secrets award under at least one of the defendant's policies.

In the complaint, Wireless says the insurer wrongfully used exclusions to deny coverage and did so in bad faith.

This week, attorneys for Wireless Systems Solutions filed a motion for summary judgment. The motion asks the court for a judgment on the merits of the case before the trial. It is properly made where only a question of law needs to be decided, and where there is no dispute about the facts.

Wireless Systems Solutions claims that Philadelphia Indemnity Insurance Co. admitted that the allegations in the underlying suit triggered coverage, but has yet to explain its position for denying coverage for the underlying arbitration award.

Attorneys for Wireless Systems also argue that the insurer breached its duty to defend when it relied on inapplicable policy exclusions and other erroneous 'bad' facts.

Not to be outmatched, Philadelphia Indemnity filed its own motion for summary judgment, asking the court to dismiss all of the plaintiff’s claims. The insurer argues that Wireless Systems failed to properly report the underlying matter and the exclusions were appropriately applied.

Philadelphia Indemnity Insurance Co. is represented by David Brown of Goldberg Segalla LLP and Anthony Morris of Akerman LLP.

Attorneys for Philadelphia Indemnity said in their motion that there is no evidence to support the plaintiff’s claims of unfair and deceptive trade practices or bad faith conduct.

The underlying lawsuit which was filed by SmartSky Networks LLC against Wireless Systems in 2020, claimed a breach of contract, conspiracy, deceptive and unfair trade practices, trade secret misappropriation, and various other claims. Court records show that in February the court confirmed SmartSky's $12.5 million arbitration award against Wireless.

The competing motions are pending the court’s review.