February 2, 2009 by Matt Thomas
Another day, another story about somebody suing somebody else in the technology sector. This time it’s the turn of Intel to flex their legal muscle as they take on pithily titled insurance provider, American Guarantee and liability insurance.
The suit centre’s around the alleged breach of a contract between the two companies. It seems the insurance company failed to pay Intel’s legal costs when they were sued by Advanced Micro Devices (AMD) for alleged unfair business practices and anti-competitive conduct concerning the sale and advertisement of its chips.
Intel took out insurance policies with two other companies (Old Republic and XL insurance) to cover legal fees in the event of a suit against them. Once they had exhausted those, to the tune of $66 million (most of which was payed by XL), American Guarantee apparently refused to pay up a dollar of the $50 million policy that Intel took out with them.
Intel put it like this in their complaint, apologies for the legalese…
“Despite the clear potential of covered liability presented by the AMD litigation, AGLI summarily denied coverage leaving Intel to defend itself in the AMD litigation without the benefits owned under the AGLI Policy.”
American Guarantee have so far declined to comment.
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