Fallon McElligott, Inc. v. Seaboard Surety Co.

OPINION

DAVIES, Judge.

Respondent Fallon McElligott, Inc. (Fal-lon), an advertising agency, prepared for a client advertisements that copyright holders believed violated their copyrights. The client, upon demand by the copyright holders, withdrew the advertisements and brought a claim against Fallon for breach of contract and professional negligence (but not for copyright infringement). Fal-lon settled the client’s claim and sought to recover settlement and defense costs from appellant Seaboard Surety Company (Seaboard), its enumerated-perils insurer, and from its insurance agent, respondent…