A recent ruling by the U.S. District Court for the District of Connecticut has determined that Clear Blue Specialty Insurance Co. is not obligated to cover a $1 million settlement between six professional models and Mr. Happy’s Café, a Connecticut-based adult entertainment venue. The models had alleged that the club used their images in advertisements without consent, leading to claims of false association and false advertising.
The court’s decision hinged on a specific exclusion within the club’s commercial general liability policy. This exclusion pertains to “exhibitions and related marketing,” effectively barring coverage for injuries arising from advertising for promotional events. The court found that the club’s advertisements, which featured the models’ images, were tied to specific holidays or themed nights, such as baseball night, and offered discounts on food and entertainment to attract additional customers. Therefore, these advertisements were deemed to fall under the policy’s exclusion for “advertising for promotional events.” ([docs.justia.com](https://docs.justia.com/cases/federal/district-courts/connecticut/ctdce/3%3A2024cv01980/162721/63?utm_source=openai))
This case is part of a broader trend where models have pursued legal action against adult entertainment venues for unauthorized use of their likenesses. In a similar case, 24 models, including Carmen Electra, sued three Massachusetts-based strip clubs for using their images in advertisements without permission. The models secured a $1.9 million consent judgment against the club owners. However, the federal district court in Massachusetts ruled that Blackboard Specialty Insurance Co., one of the clubs’ insurers, was not obligated to cover the judgment. The court found that the claims were barred under exclusions to personal and advertising injury in the policies. ([insurancejournal.com](https://www.insurancejournal.com/news/east/2026/02/24/859272.htm?utm_source=openai))
These rulings underscore the importance of understanding the specific exclusions within insurance policies, particularly in industries where promotional activities are integral to business operations. For legal professionals advising clients in the entertainment and hospitality sectors, these cases highlight the necessity of carefully reviewing policy terms to assess coverage scope and potential liabilities.