In a recent ruling, a Kansas federal court has dismissed two counterclaims filed by a Kansas State University-affiliated philanthropy against its insurer. These counterclaims concerned insurance coverage over allegations that the foundation had taken a man’s economic development ideas for the university.
According to the court’s finding, the insurer should bear no responsibility for the payment of the philanthropy’s self-appointed legal representation in this intellectual property dispute. As reported, it suggests that insurance companies might not be obligated to shoulder the legal expenses claimed by policyholders under such circumstances.
The court’s decision leads to broader discussions on insurer’s obligations in intellectual property lawsuits and may potentially impact how non-profits, educational institutions and corporations select and engage their counsel in these types of legal battles.