Wireless Co. Says Insurer On the Hook for $13M Trade Secrets Award

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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.