Sandra Bullock Lawsuit Gets Complicated

LOS ANGELES (CN) – An insurer sued Sandra Bullock, a jewelry company and a jewelry liquidator, seeking clarification of its duties in an underlying lawsuit and arbitration involving the actress.
     Federal Insurance Co. sued United States Jewelry Liquidators, SPD Group and Bullock, in Superior Court.
     The underlying case, Sandra Bullock v ToyWatch USA, et al., is stayed pending arbitration. Bullock seeks more than $75,000 in the lawsuit, which stems from website ads for the ToyWatch, which show Bullock wearing the watch as a character in the movie, “The Blindside.”
     Bullock alleged misappropriation of her name and image and rights to publicity.
     In the new lawsuit, Federal Insurance claims that defendants United States Jewelry Liquidators and SPD Group entered into a settlement agreement and agreed not to execute it with Bullock without Federal’s consent.
     “Through this action, Federal, an excess/umbrella insurer, seeks a declaration with regard to its rights, duties and obligations, if any, under certain of its insurance policies, and especially with regard to claims and issues pending in a JAMS arbitration proceeding through which the insureds and claiming are attempting to improperly manufacture a collusive judgments to be enforced against Federal,” the lawsuit states. “After an uncovered claim was filed, Federal’s insureds materially breached their duties and obligations under the policy/ies, by entering into a settlement and agreeing to binding judicial arbitration for new, previously unasserted claims without Federal’s knowledge or consent.”
     Federal seek declaratory judgment.
     It is represented by Robert Traylor, with Seltzer Caplan McMahon Vitek, of San Diego.

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