Capitol Indemnity Corp. v. Elston Self Service Wholesale Groceries, Inc.

MEMORANDUM OPINION AND ORDER

REBECCA R. PALLMEYER, District Judge.

Plaintiff, Capitol Indemnity Corporation (“Capitol Indemnity”), seeks a declaratory judgment that it has no obligation to defend its insured, Elston Self Service Wholesale Groceries, Inc. (“Elston”), in a lawsuit alleging trademark infringement and fraud. In the underlying dispute, Lorillard Tobacco Company (“Lorillard”) brought claims related to Lorillard’s federally-registered trademarks against Elston; Elston’s owner, Mashour Dukum (“Mike”); and two of Elston’s employees, Ibrahim Dukum (“Ibrahim”) and David Dukum (“David”).…