Legal News

Seagate sues insurer over unpaid legal costs

By Richard Binder

Disk drive giant Seagate Technology settled a patent fight with Cornice Inc. two years ago. Problem is, according to Seagate, its insurer won't pick up the tab for its lawyers at Fish & Richardson.

With the company now suing its insurer, Seagate said in a filing Tuesday that National Union Fire Insurance Co. of Pittsburgh has paid only $4 million of the $10 million it spent on the case.

Seagate originally filed patent infringement claims against Cornice over its tiny disk drives in the International Trade Commission and in Delaware federal court in 2004. Cornice responded with counterclaims that Seagate's patents were invalid and that the lawsuit disparaged its products.

Seagate, represented by Orrick, Herrington & Sutcliffe's Robert Freitas in the insurance fight, said that National Union gave it the green light to defend against Cornice's counterclaims. National Union paid out more than $4 million, but refused to cough up the additional $6 million, Seagate said in Tuesday's pretrial statement. National Union, represented by Drinker Biddle & Reath, fired back that it plans to file breach of contract counterclaims against Seagate.

Read the full story at The Recorder.

Full post as published by Legal Pad | LA on February 18, 2009 (boomark / email).