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ORDER JENSEN, District Judge. A hearing was held on November 30, 1994 on defendant and cross-complainantâs motion for reconsideration and partial summary judgment. Kathleen E. Hegen appeared for plaintiff and cross-defendant American Economy Insurance Company (âAmerican Statesâ) and Kenneth M. Seeger appeared for defendant and cross-complainant Re-boans, Inc. (âReboansâ). For the reasons stated below, defendant Reboansâ motions for reconsideration and partial summary judgment are GRANTED. *1248 I. BACKGROUND Reboans is a California corporation that formerly owned and operated three gift shops, Nikaido, Heiseido and America-Ya, all of which are located in the Union Square area of downtown San Francisco. Charles Bogar is the sole shareholder and officer of Reboans. Jo Ann Bogar is a former shareholder and officer. Reboans specializes in the import, export and retail sale of famous brand-name merchandise, including leather goods, apparel, jewelry, handbags, accessories, luggage and other merchandise. Reboansâ retail activities in San Francisco have focused primarily on tourists, especially Japanese tourists. To that end, Reboans advertises in tour books distributed for use by Japanese tourists visiting the United States, and solicits San Francisco Hotels and tour guides to direct tourists to Reboansâ stores by distributing handbills. These advertisements display the names of many of the product lines carried by the gift shops, including (until recently) the âDunhillâ name. In addition, until recently Reboans prominently displayed the âDunhillâ name on posters and placards in its store windows and on point-of-purchase displays in its retail stores. Dunhill manufactures and markets pipes, pens, leather goods, jewelry and accessories under its trademarked name âDUNHILLâ and its trademark stylized âDâ design. On February 10, 1993, Dunhill filed a complaint against Reboans and Charles Bogar, as Reboansâ sole shareholder, seeking to recover damages for trademark infringement, false designation of origin, trademark counterfeiting, racketeering, unfair competition and injury to business reputation. In its complaint, Dunhill alleged that Re-boans is not an âauthorizedâ retailer, that it is not authorized to use Dunhillâs trademarks in its advertisements or to sell Dunhill products, that Reboans wrongly displays Dunhillâs trademarks âDUNHILLâ and the stylized âDâ logo in its advertisements and wrongly sells copies of Dunhillâs products and that Dunhill is sustaining actual resulting injury. Dunhillâs first claim for relief, which is for âtrademark counterfeiting,â alleges that The counterfeiting, imitating or copying of Alfred Dunhillâs registered trademarks, and the sale and offering for sale of such goods bearing counterfeits of Alfred Dun-hillâs registered DUNHILL work marks and stylized âDâ logos, have confused, and are likely to continue to confuse or deceive the public into believing defendantâ products originate from or are associated with plaintiff. Dunhillâs second claim, for âtrademark infringement,â alleges that: This counterfeiting, imitating, copying and unauthorized use of Alfred Dunhillâs registered DUNHILL work marks and stylized âDâ logos constitutes trademark infringement and trademark counterfeiting and is likely to cause confusion, deception and mistake among the consuming public and those who view defendantsâ goods bearing Alfred Dunhillâs trademarks as indicating an association between defendantsâ counterfeit goods and plaintiffs trademarks. Dunhillâs third claim, for false designation of origin and false representations, alleges that Defendantsâ willful counterfeiting, imitating or copying of Alfred Dunhillâs registered DUNHILL word marks or stylized âDâ logos, the unauthorized sale, purchase, distribution, and offering for sale of Dun-hill branded goods, the false statements by defendants, and the use of the trade dress of plaintiffs products, constitutes a false designation of origin or a false description or representation that wrongly and falsely designates that such merchandise distributed and sold now or in the future by defendants, as originating from, and connected with, authorized by, or otherwise associated with Alfred Dunhill, and constitutes utilizing false descriptions or representations in interstate commerce. Dunhillâs eighth claim, for common law palming off, alleges that Defendantsâ counterfeiting, imitating or copying of Alfred Dunhillâs registered DUNHILL word marks or stylized âDâ logos falsely designates from, or is otherwise associated with, Alfred Dunhill. *1249 Defendantâs acts have confused, and are likely to continue to confuse, mislead and deceive the public as to the source of sponsorship of defendantsâ goods, permitting defendants to palm off defendantsâ goods as those of Alfred Dunhill, all to the detriment of plaintiff and the unjust enrichment of defendants. Dunhillâs prayer for relief includes, inter alia, a request that the Court enjoin Reboans from using any simulation, reproduction, counterfeit, copy or colorable imitation of Alfred Dunhillâs registered DUNHILL word marks or stylized âDâ logos, or any of Alfred Dunhillâs registered or licensed trademarks or trade dress in connection with the promotion, advertisement, display, sale, offering for sale, manufacture, printing, importation, production, circulation or distribution of any product, in such fashion as to relate or connect such product in any way to Alfred Dunhill, or to any goods sold, manufactured, sponsored or approved by, or connected with Dunhill. In addition, Dunhill prays for an order âdirecting that [Reboans] deliver for destruction all products, labels, signs, prints, packages ... and advertisements in their possession, or under their control, bearing work marks or stylized âDâ logos, or any of Alfred Dunhillâs trademarks.... â Finally, Dunhill prays for actual damages it claims to have suffered because of Re-boansâ alleged âtrademark infringement, counterfeiting, false designation or origin and unfair competition.â In January 1989, Reboans purchased a Commercial General Liability (âCGLâ) insurance policy from plaintiffs and counterdefen-dants American States. The policy has been renewed and it was in effect during the time period in which the activities of which Dun-hill complains took place. Pursuant to the terms of the policy, American States agreed to pay the full costs and expenses of defending all lawsuits against Reboans (and/or Mr. Bogar, as it sole shareholder) for claims potentially covered under the policy. The American States policy is divided into two separate coverage parts. Coverage Part A provides insurance for âbodily injury and property damage,â while Coverage Part B separately provides insurance for âpersonal and advertising injury liability.â The âAdvertising Injuryâ part of the American States policy provides coverage as follows: âThis insurance applies to âadvertising injuryâ only if caused by an offense committed: ... (2) In the course of advertising your goods, products or services.â âAdvertising injuryâ is defined in the American States policy, in part, as: âMisappropriation of advertising ideas or style of doing businessâ and as âInfringement of copyright, title or slogan.â The American States policy does not define the terms âadvertising,â âyour goods, products or services,â âmisappropriation,â âadvertising ideas,â âstyle of doing business,â âinfringement,â âcopyright,â âtitle,â or âslogan.â At the time the Dunhill Complaint was filed, American States had already refused to defend Reboans against similar claims brought against Reboans by Hunting World (the âHunting World actionâ). In fact, American States had already filed the present action against Reboans for declaratory relief arising out of American Statesâ refusal to defend the Hunting World action and the parties had already briefed cross-motions for summary judgment. Nevertheless, Reboans and Bogar tendered the defense in the Dun-hill lawsuit to American States, by letter dated February 16, 1993. Reboans included a copy of the Dunhill Complaint with the letter tendering coverage. Subsequently, Reboans provided American States with examples of Reboansâ advertising materials displaying Dunhillâs trademarked name (in both English and Japanese) and stylized âDâ logo. While the cross-motions for summary judgment were still pending, American States denied its obligation to defend Re-boans and Bogar. By letter dated March 5, 1993, American States stated that it would amend its complaint in the present coverage dispute in order to add its refusal to defend Reboans in the Dunhill action to its refusal *1250 to defend Reboans in the Hunting World action. The cross motions 'for summary judgment and partial summary judgment were heard by the Honorable Barbara Caulfield on May 2, 1994. Judge Caulfield filed an order (the âMay 2nd Orderâ) granting summary judgment to American States on its claim that it owed Reboans no duty to defend Reboans in the Hunting World action. After Reboans filed a notice of appeal from the May 2nd Order, but before the district court entered judgment on it, American States filed the amended complaint claiming that it owed Reboans no duty to defend the Dunhill action. American Statesâ amended complaint arguably deprived the Court of Appeals of jurisdiction over the appeal from the judgment later entered on the unamended complaint, on the ground that that judgment was not a âfinal decisionâ within the meaning of 28 U.S.C. § 1291 . 1 As a result, Reboans filed a motion in the district court to strike the amended complaint or to enter a Rule 54(b) partial final judgment on the Hunting World portion of the amended complaint so that this appeal could proceed. That motion was calendared for hearing on September 23, 1994 before Judge Caulfield. American Statesâ response to Reboansâ motion in the district court was due on September 1, 1994, but it filed no response. Subsequently, Reboans discovered that on August 30, 1994, the California Court of Appeal filed an opinion in Clary Corp. v. Union Standard Ins. Co., 33 Cal.Rptr.2d 486 (1994). Defendants believe that this case casts substantial doubt on the validity of the district courtâs May 2nd Order granting American Statesâs summary judgement on the duty to defend the Hunting World action. Because the duty to defend the Dunhill action turns on the same construction of the same insurance policy involved in the Hunting World action, defendants believe that Clary bears favorably on Reboansâ claim that American States owed a duty to defend that action as well. Because of Clary, and because the district court has not entered an appealable final judgment with a Rule 54(b) certification, Re-boans decided not to proceed with the motion in the district court to strike the amended complaint or to enter a Rule 54(b) partial final judgment. Instead, Reboans decided to seek reconsideration of the district courtâs order granting summary judgement in the Hunting World matter and file a motion for summary judgment in the Dunhill matter. Accordingly, Reboans withdrew the September 23 motion and prepared the present motion for reconsideration of the May 2nd Order and the accompanying motion for partial summary judgment on the duty to defend the Dunhill action. As a result of these developments, Re-boans will not be filing an opening brief in the earlier appeal of the May 2nd Order and will instead await the outcome of the present motions in this court. II. LEGAL STANDARDS A. Motion for Reconsideration Federal Rule of Civil Procedure 60(b) governs the reconsideration of final orders. Motions to reconsider are committed to the discretion of the trial court. Pacific Group v. First State Ins. Co., 841 F.Supp. 922, 932 (N.D.Cal.1993); Combs v. Nick Garin Trucking, 825 F.2d 437, 441 (D.C.Cir.1987). To succeed in a motion to reconsider, a party must set forth facts or law of a strongly convincing nature to induce the Court to reverse its prior decision. See, e.g., Kern-Tulare Water Dist. v. City of Bakersfield, 634 F.Supp. 656, 665 (E.D.Cal.1986), aff'd in part and revâd in part on other grounds, 828 F.2d 514 (9th Cir.1987), cert. denied, 486 U.S. 1015 , 108 S.Ct. 1752 , 100 L.Ed.2d 214 (1988). A motion for reconsideration is appropriate where there has been an intervening change in the controlling law. School Dist. No. 1J Multnomah County v. ACandS, Inc., 5 F.3d 1255 , 1263 (9th Cir.1993); Painting Ind. of Hawaii v. U.S. Dept. of Air Force, 756 F.Supp. 452, 453 (D.Hawaii 1990) A motion for reconsideration is appropriate under Rule 60(b)(6) based on âany reasons *1251 justifying relief from the operation of the judgment,â including a change in the controlling law. Painting Ind. of Hawaii, supra, 756 F.Supp. at 453 . However, relief under Rule 60(b)(6) requires a finding of âextraordinary circumstances.â Backlund v. Barnhart, 778 F.2d 1386, 1388 (9th Cir.1985). B. Motion for Partial Summary Judgment Federal Rules of Civil Procedure 56 states that summary judgment may be granted when âthe pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.â Fed.R.Civ.P. 56(c). In a motion for summary judgment, â[i]f the party moving for summary judgment meets it initial burden of identifying for the court those portions of the materials on file that it believes demonstrate the absence of any genuine issues of material fact,â the burden of production then shifts so that âthe nonmoving party must set forth, by affidavit or as otherwise provided in Rule 56, âspecific facts showing that there is a genuine issue for trial.â â T.W. Elec. Serv., Inc. v. Pacific Elec. Contractors Assân, 809 F.2d 626 , 630 (9th Cir.1987) (quoting Celotex Corp. v. Catrett, 477 U.S. 317, 324 , 106 S.Ct. 2548, 2553 , 91 L.Ed.2d 265 (1986)); Kaiser Cement Corp. v. Fischbach & Moore, Inc., 793 F.2d 1100, 1103-04 (9th Cir.), cert. denied, 479 U.S. 949 , 107 S.Ct. 435 , 93 L.Ed.2d 384 (1986). Rule 56(c) requires this Court to enter summary judgment, âafter adequate time for discovery and upon motion, against a party who fails to make a showing sufficient to establish the existence of an element essential to that partyâs case, and on which that party will bear the burden of proof at trial.â Celotex, 477 U.S. at 322 , 106 S.Ct. at 2552 . The mere existence of a scintilla of evidence in support of the non-moving partyâs position is insufficient: â[Tjhere must be evidence on which the jury could reasonably find for the [non-moving party].â Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 251-52 , 106 S.Ct. 2505, 2512 , 91 L.Ed.2d 202 (1986). This Court thus applies to a motion for summary judgment the same standard as for a motion for directed verdict. â[Wjhether the evidence presents a sufficient disagreement to require submission to a jury or whether it is so one-sided that one party must prevail as a matter of law.â Id. III. DISCUSSION A. Motion for Reconsideration Reboans and American States filed cross motions for summary judgment and partial summary judgment which were decided on May 2, 1994, when Judge Caulfield filed an order granting summary judgment to American States. Nearly four months after Judge Caulfieldâs May 2 Order, the California Court of Appeal, Fourth Appellate District, Division Three, filed its opinion in Clary Corp. v. Union Standard Ins. Co., 33 Cal.Rptr.2d 486 (1994). In Clary, a California appellate court spoke for the first time on an issue on which Judge Caulfield expressly offered âno opinionâ â the meaning of the coverage provision âinfringement of title.â As the first decision on this issue, Clary represents a change in the controlling law, which requires this Court to reconsider the May 2 Order. In Clary, an insured was sued for patent infringement and sought coverage under its commercial general liability policy for advertising injury arising out of infringement of title. The insured argued that âtitleâ in the phrase âinfringement of. titleâ meant âtitle to a piece of property,â such as a patent. Id. 33 Cal.Rptr.2d at 492. The Clary court surveyed the existing law, including the New York district courtâs vacated opinion in Brundage and an August 9, 1994 opinion out of Minnesota, Ross v. Briggs and Morgan, 520 N.W.2d 432 (Minn.1994). It also analyzed the phrase in the context of the entire policy. The Clary court concluded that infringement of title refers to claims based on the confusion of names or designations. The word âtitleâ denotes a âdescriptive or general headingâ or âdistinguishing name,â such as âRoto-Rooterâ in Brundage, or âSkin Diseaseâ in Ross . Coverage for infringing on someone elseâs âtitleâ (that is, name) makes perfect sense in the context *1252 of advertising injury protection for infringement of copyright or slogan: advertisements themselves are likely to be the source of any claim based on one business masquerading as another. Id. at 492 (emphasis in original.) We agree with defendant Reboans that the decision in Clary is a compelling basis for reconsidering and reversing the May 2 Order. The policy that American States sold to Reboans used the same policy form analyzed by the Court of Appeal in Clary. The American States policy provides coverage to Re-boans for âadvertising injuryâ caused by an offense committed âin the course of advertising [Reboansâ] goods, products or services.â American States Policy, p. 3, ¶ l.d. âAdvertising injuryâ is defined to include âinjury arising out of ... infringement of copyright, title or slogan.â American States policy, p. 7, Section V, ¶ l.c. Clary defines âinfringement of titleâ to mean claims based on the confusion of names or designations. Thus, in the context of the Hunting World case, the American States policy covers: (1) injuries suffered by Hunting World; (2) arising out of Reboansâ infringement of a name or designation; (3) if the infringement was committed in the course of advertising by Reboans of goods it was offering for sale. American States did not define âinfringement of title or sloganâ in its policy. Accordingly, these terms must be construed in accordance with Reboansâ objectively reasonable expectations, taken in the context of the policy as a whole, and in the âordinary and popular senseâ of the words used in each term. AIU Ins. Co. v. Superior Court, 51 Cal.3d 807 , 274 Cal.Rptr. 820 , 799 P.2d 1253 (1990). Under this framework, it is âobjectively reasonableâ for Reboans to expect that the meaning of âinfringement of titleâ would encompass, as the Court of Appeal determined, use of anotherâs name or designation in an advertisement, whether or not the name or designation was a âtrademark.â Accordingly, the Court chooses to apply the reasoning of Clary to the facts of the present case and REVERSES the May 2 Order. American States is ordered to assume its duty to defend Reboans in the Hunting World matter. B. Motion for Partial Summary Judgment Both parties essentially agree that the issue of duty to defend in the Dunhill case should be decided by summary judgment. The Hunting World and the Dunhill actions are virtually identical, having even been brought by the same law firm. The two cases are so similar that the parties to this litigation considered stipulating to be bound in the Dunhill coverage action by the outcome of the Hunting World appeal. Deck of Leung. In any event this Court finds that the reasoning of the court in the Hunting World action applies equally to Dunhill and requires this Court to find that American States also has a duty to defend or indemnify Reboans for the Dunhill action. For over twenty-five years, California courts have acknowledged the broad scope of the duty of an insurer to defend its insured; the duty is triggered by any claim that creates even a possibility of ultimate coverage. Gray v. Zurich Ins. Co., 65 Cal.2d 263, 275-277 , 54 Cal.Rptr. 104 , 419 P.2d 168 (1966) (âthe carrier must defend a suit which potentially seeks damages within the coverageâ must be made by the insurer from the allegations of the complaint and any other sources available to it at the time of the tender of defense.) Gray v. Zurich, 65 Cal.2d at 276-277 , 54 Cal.Rptr. 104 , 419 P.2d 168 . Thus the duty to defend exists whenever coverage is in doubt at the outset of a claim even if coverage never develops. Saylin v. California Ins. Guarantee Assân, 179 Cal.App.3d 256, 263 , 224 Cal.Rptr. 493 (1986). Coverage clauses are to be interpreted broadly in favor of the insured so as to afford the greatest protection to the insured. State Farm Mut. Auto. Ins. Co. v. Partridge, 10 Cal.3d 94, 101-102 , 109 Cal.Rptr. 811 , 514 P.2d 123 (1973); Reserve Ins. Co. v. Pisciotta, 30 Cal.3d 800, 808 , 180 Cal.Rptr. 628 , 640 P.2d 764 (1982). This is because the ordinary expectation of one who purchases liability insurance is that he will be covered for any liabilities incurred as a result of any activities to which the policy relates. Id. at 810 , 180 Cal.Rptr. 628 , 640 P.2d 764 . *1253 The corollary to this is that exclusionary clauses are to be interpreted narrowly against the insurer. State Farm Mut. Auto. Ins. Co. v. Partridge, 10 Cal.3d at 101-102 , 109 Cal.Rptr. 811 , 514 P.2d 123 . Once an insured establishes that coverage applies under the broad insuring agreements in the policy, the burden of proof shifts to the insurer to provide that a covered claim falls within an exclusion. Royal Globe Ins. Co. v. Whitaker, 181 Cal.App.3d 532, 537 , 226 Cal.Rptr. 435 (1986). A court that is faced with an argument for coverage based on assertedly ambiguous policy language must first attempt to determine whether coverage is consistent with the insuredâs objectively reasonable expectations. In so doing, the court must interpret the language in context with regard to its intended function in the policy. Bank of the West v. Superior Court, 2 Cal.4th 1254, 1265 , 10 Cal.Rptr.2d 538 , 833 P.2d 545 (1992). If this rule does not resolve the ambiguity, that uncertainty must be resolved against the insurer â if semantically permissible, the contract will be given such construction as will likely achieve its object of providing coverage for the loss to which the insurance relates. Harris v. Glens Falls Ins. Co., 6 Cal.3d 699, 701 , 100 Cal.Rptr. 133 , 493 P.2d 861 (1972). The purpose of this canon of construction is to protect the insuredâs reasonable expectation of coverage in a situation in which the insurer controls the language of the policy. Reserve Ins. Co. v. Pisciotta, 30 Cal.3d at 809 , 180 Cal.Rptr. 628 , 640 P.2d 764 . A Infringement of Title The American Statesâ policy provides coverage to Reboans for âadvertising injuryâ caused by a offense committed âin the course of advertising [Reboansâ] goods, products or services.â American States Policy, p. 3, ¶ l.c. âAdvertising injuryâ is defined to include âinjury arising out of ... infringement of copyright, title or slogan.â American States policy, p. 7, Section V, ¶ l.d. The meaning of âinfringement of titleâ in an insurance policy identical to American Statesâ policy was at the heart of the California Court of Appealâs recent decision in Clary. The Clary decision is consistent with the decisions of numerous courts around the nation that have examined this same coverage provision. See e.g., Atlantic Mutual Ins. Co. v. Brotech Corp., 857 F.Supp. 423 (E.D.Pa.1994) (infringement of title refers to a distinctive name or designation); P.J. Noyes Co. v. American Motorists Ins. Co., 855 F.Supp. 492 (D.N.H.1994) (âthe allegation that Noyes used the name âDustfree Precision Pelletsâ in their advertising, literature and packaging, arguably falls within the ambit of misappropriation of advertising ideas or style of doing business or infringement of a title or sloganâ); J.A. Brundage Plumbing & Roto-Rooter, Inc. v. Massachusetts Bay Ins. Co., 818 F.Supp. 553, 558-559 (W.D.N.Y.1993), vacated by reason of settlement, 153 F.R.D. 36, 38 (W.D.N.Y.1994) (âClearly, then, infringement of âtitleâ can include trademark or tradename infringement.â); Ross v. Briggs & Morgan, 520 N.W.2d 432, 436 (Minn.App.1994) (âThe similarity of Rossâ âSkin Physicians P.A.â ... to Jaffeâs âskin Diseases P.A.â ... arguably constituted an infringement of Jaffeâs titles or slogans that was covered by the insurance policy.â). Thus, in the context of the Dunhill case, the American States policy covers: (1) injuries suffered by Dunhill, (2) arising out of Reboansâ infringement of a name or designation, (3) if the infringement was committed in the course of advertising by Reboans of goods it was offering for sale. Dunhill alleges that it suffered recoverable âinjuryâ (such as lost profits). See e.g. Dun-hill Complaint, p. 8 ¶ 23, p. 29 ¶ 4-6. Moreover, the allegations of the Dunhill Complaint and the undisputed facts make it clear that Dunhillâs claim is for âinfringement of a name or designationâ (i.d., the name âDUNHILLâ and the designation stylized âDâ logo). See e.g. Dunhill Complaint ¶¶ 17, 26, 31. Finally, this offense is alleged to have been committed in the course of Reboansâ advertising. See e.g. Dunhill Complaint ¶ 56 (âDefendants have further palmed off their goods as those of Alfred Dunhill by their false labeling and thereby made misrepresentations to the consuming public, members of which are likely to have believed that defendantsâ counterfeit *1254 merchandise emanate from, or are associate with, Alfred Dunhill.â); ¶64 (âDefendantsâ counterfeiting, imitating or copying of Alfred Dunhillâs registered DUNHILL word marks or stylized âDâ logos falsely designates that such merchandise distributed and sold by defendants originates from, or is otherwise associated with, Alfred Dunhill.â). Therefore, American States owes Reboans a duty to defend Reboans in the Dunhill action because the complaint alleges infringement of title. B. Distinctive Trade Dress The American States Policy also defines âadvertising injuryâ as âinjury arising out of ... misappropriation of ... style of doing business.â American Statesâ Policy, p. 7, section V, ¶ l.c. As noted above, American States did not define âstyle of doing businessâ in its policy. Thus, under AIU Ins. Co. v. Superior Court, the term must be construed in accordance with Reboansâ objectively reasonable expectations, taken in the context of the policy as a whole and in the âordinary and popular senseâ of those words. 51 Cal.3d at 807 , 274 Cal.Rptr. 820 , 799 P.2d 1253 . Numerous courts that have examined advertising injury coverage for âmisappropriation of style of doing businessâ have concluded that the term refers to trade dress infringement. For example, one district court applying California law held that âThe term âstyle of doing business,â as it appears in the insurance policy, has been used by the courts to refer to a companyâs comprehensive manner of doing business. [Footnote omitted.] âStyle of doing businessâ expresses essentially the same term as the more widely used term: âtrade dress.ââ St. Paul Fire and Marine Ins. Co. v. Advanced Interventional Systems, Inc., 824 F.Supp. 583 (E.D.Va.1993) aff'd 21 F.3d 424 (4th Cir.1994). See also, J.A. Brundage Plumbing & Roto-Rooter, Inc. v. Massachusetts Bay Ins. Co., 818 F.Supp. 553, 558-559 (W.D.N.Y.1993), vacated by reason of settlement, 153 F.R.D. 36 (W.D.N.Y.1994) (âoneâs mark and name is an integral part of an entityâs âstyle of doing business.â Such misappropriation of âstyle of doing businessâ would include trademark, trade name, or servicemark infringement.â); P.J. Noyes Co. v. American Motorists Ins. Co., 855 F.Supp. 492 (D.N.H.1994) (âthe allegation that Noyes used the name âDustfree Precision Pelletsâ in their advertising, literature and packaging, arguably falls within the ambit of misappropriation of advertising ideas or style of doing business or infringement of a title or sloganâ); Ross v. Briggs & Morgan, 520 N.W.2d 432, 435-436 (Minn.App.1994) (âBecause the âpassing off portion of Jaffeâs deceptive trade practices and unfair competition claims suggest that [insured] took and used his advertising ideas and possibly even his entire style of doing business, they arguably were covered by the âunauthorized taking of advertising ideas or style of doing businessâ clause in the policy.â) Thus, as all of the cases cited above demonstrate, it is âobjectively reasonableâ for Reboans to expect that the meaning of âstyle of doing businessâ would encompass the statutory and common law tort of trade dress infringement, which is precisely the claim brought against Reboans in the Dunhill action. The Lanham Act claims in the Dunhill complaint are the statutory equivalent of the old common law tort of trade dress infringement. Two Pesos, Inc. v. Taco Cabana, Inc., 505 U.S. 763, 768-69 , 112 S.Ct. 2753, 2763 , 120 L.Ed.2d 615, 629-631 (1992) (Stevens, J., concurring) (âThe federal courts are in agreement that Section 43(a) creates a federal cause of action for trademark and trade dress infringement claimsâ). In fact, Dunhill has asserted claims of trade dress infringement against Reboans under both the Lanham Act and under California law. Dunhillâs third claim for relief for âFalse Designation of Originâ under section 43(a) of the Lanham Act ( 15 U.S.C. § 1125 (a)) is a statutory claim for trade dress infringement. Specifically, Dunhill alleges that Defendantsâ willful counterfeiting, imitating or copying of Alfred Dunhillâs registered DUNHILL word marks or stylized âDâ logos ... and the use of the trade dress of plaintiff s products, constitutes a false designation of origin or a false description or representation.... [Dunhill Complaint ¶ 36.] *1255 Similarly, Dunhillâs eighth claim, for common law palming off, includes allegations of trade dress infringement: Defendantsâ counterfeiting, imitating or copying of Alfred Dunhillâs registered DUNHILL word marks or stylized âDâ logos falsely designates that such merchandise distributed and sold by defendants originated from, or is otherwise associated with, Alfred Dunhill. Defendantsâ acts have confused, and are likely to continue to confuse, mislead and deceive the public as to the source of sponsorship of defendantsâ goods, permitting defendants to palm off defendantsâ goods as those of Alfred Dunhill, all to the detriment of plaintiff and the unjust enrichment of defendants. [Dunhill Complaint ¶¶ 64-65.] Reboans is thus accused specifically of misappropriating Dunhillâs trade dress by using the name âDUNHILLâ and the stylized âDâ logo to âpass offâ its products as those of Dunhill through its advertising. California law requires only a âcausal connectionâ between the claims against the insured and âadvertisingâ for there to be injury âin the course ofâ advertising. Bank of the West v. Superior Court, 2 Cal.4th 1254, 1265, 1277 , 10 Cal.Rptr.2d 538 , 833 P.2d 545 (1992). The allegations of the Dunhill complaint and the facts made available to American States establish that Reboans is potentially liable for trade dress infringement [Section 43(a) of the Lanham Act] and common law âpassing offâ of its goods as those of Dunhill in its advertising. Therefore, American States owes Re-boans a duty to defend Reboans in the Dun-hill action because the complaint alleges misappropriation of style of doing business. For the aforementioned reasons, defendant Reboansâ motions for reconsideration of the May 2 Order and partial summary judgment on American Statesâ duty to defend are GRANTED. Accordingly, this Court GRANTS summary judgment to Reboans on its claim that American States owes Reboans a duty to defend in the Hunting World action. In addition, this Court GRANTS partial summary judgment to Reboans on its claim that American States owes Reboans a duty to defend in the Dunhill action. IT IS SO ORDERED. ORDER ON RECONSIDERATION On February 1, 1995, at the status conference in the above captioned matter, this Court requested briefing on the effect, if any, of the depublication of the California appellate decision, Clary Corp. v. Union Standard Inc. Co., 33 Cal.Rptr.2d 486 (1994) on this Courtâs December 27, 1994 Order granting reconsideration and partial summary judgment in favor of Reboans. This Court construes the papers filed by American States as a motion to reconsider this Courtâs December Order. Having considered the papers submitted, the Court hereby DENIES American Statesâ motion for reconsideration. I. BACKGROUND This is a suit over plaintiff American Statesâ duty to defend defendant Reboans against claims that it infringed on trademarks when it advertised and sold âDunhillâ and âHunting Worldâ products. Reboansâ insurance policy covers, among other losses, suits based on the following types of âadvertising injuryâ: c. Misappropriation of advertising ideas or style of doing business; or d. Infringement of copyright, title or slogan. This Court, Judge Caulfield presiding, issued an order in the Hunting World case on May 2, 1994. The order held that plaintiff American Economy Insurance had no duty to defend defendant Reboans against trademark infringement claims, because the claims were not based on a âmisappropriation.â The subsequent procedural history of the case is as follows: Defendant Reboans filed a notice of appeal on June 1, 1994. On June 23, 1994, Judge Caulfield entered judgment in favor of American Economy. On the same date, plaintiffs filed an amended complaint that added American States as a plaintiff and Dunhill as a defendant. Defendants subsequently filed a motion to dismiss the amended complaint, enter judgment on the counterclaim, and stay the ease pending appeal. *1256 The motion was withdrawn in September. On November 10, 1994, the Ninth Circuit dismissed the appeal. This Court filed an order on December 27, 1994. That order granted reconsideration of the May order, holding that there was a duty to defend the Hunting World action. The order also granted partial summary judgment to Reboans on the same issue vis-a-vis the Dunhill action. The order relied in part on Clary Corp. v. Union Standard Ins. Co., 33 Cal.Rptr.2d 486 (1994). Just before the order was filed, the California Supreme Court denied review of Clary but ordered it not tĂł be published. Both parties sent letters to the Court in late December, apparently mailed just before receiving copies of the order, informing the Court of the depublication of Clary. At the status conference on February 1, 1996, this Court requested briefing on the possible effect, if any, of the depublication of Clary on this Courtâs Order. II. DISCUSSION A. Legal Standard Federal Rule of Civil Procedure 60(b) governs the reconsideration of final orders. Motions to reconsider are committed to the discretion of the trial court. Combs v. Nick Garin Trucking, 825 F.2d 437, 441 (D.C.Cir.1987). To succeed in a motion to reconsider, a party must set forth facts or law of a strongly convincing nature to induce the Court to reverse its prior decision. See, e.g., Kern-Tulare Water Dist. v. City of Bakersfield, 634 F.Supp. 656, 665 (E.D.Cal.1986), aff'd in part and revâd in part on other grounds, 828 F.2d 514 (9th Cir.1987), cert. denied, 486 U.S. 1015 , 108 S.Ct. 1752 , 100 L.Ed.2d 214 (1988). A motion for reconsideration is appropriate where there has been an intervening change in the controlling law. School Dist. No. 1J Multnomah County v. ACandS, Inc., 5 F.3d 1255 , 1263 (9th Cir.1993); Painting Ind. of Hawaii v. U.S. Dept. of Air Force, 756 F.Supp. 452, 453 (D.Hawaii 1990). A motion for reconsideration is appropriate under Rule 60(b)(6) based on âany reasons justifying relief from the operation of the judgment,â including a change in the controlling law. Painting Ind. of Hawaii, supra, 756 F.Supp. at 453 . Relief under Rule 60(b)(6), however, requires a finding of âextraordinary circumstances.â Backlund v. Barnhart, 778 F.2d 1386, 1388 (9th Cir.1985). B. Arguments In support of its contention that this Court should reverse its December 27, 1994 order granting reconsideration and granting its cross-motion for summary judgment, American States essentially second-guesses the California Supreme Courtâs reasons for its depublication order and argues that the depublication mandates reconsideration of this Courtâs Order. California law is settled, however, that an Order of the California Supreme Court directing depublication is not to be construed as an opinion of the Court on the correctness of the decision or any law that is set forth in the opinion. California Rule of Court 979(e); See Cynthia D. v. Superior Court, 5 Cal.4th 242 , 254 n. 9 (1993). In any event, grounds for this Courtâs decision to grant reconsideration of the May Order exist independent of Clary. The California Supreme Courtâs action in denying review and ordering the depublication of Clary removes the support of California authority for the December order, but it does not otherwise negate the analysis of that order. In coming to its decision, this Court relied not only upon the reasoning of Clary, but upon decisions from other jurisdictions in an attempt to determine how California courts would decide this issue in the absence of any Supreme Court decision on point. The analysis turned on an argument the parties had not raised before Judge Caulfield, and which Judge Caulfield did not address: that trademark infringement could be an âinfringement of title or slogan.â 1 *1257 Thus, this Courtâs December Order did not reverse the disposition of a particular argument, but rather explored a new one. The December Order reached its conclusion on the basis of consideration of the linguistic arguments, fundamental principles of insurance policy interpretation, and the legal landscape. Clary was an important part of the landscape, but the other cases that have considered the issue were in accord. See J.A. Brundage Plumbing v. Massachusetts Bay Ins., 818 F.Supp. 553 (W.D.N.Y.1993), vacated because of settlement, 153 F.R.D. 36 (W.D.N.Y.1994); 2 P.J. Noyes Co. v. American Motorists Ins. Co., 855 F.Supp. 492, 494-95 (D.N.H.1994) (use of trademark âarguably falls within the ambit of advertising ideas or style of doing business or infringement of a title or sloganâ); Ross v. Briggs and Morgan, 520 N.W.2d 432, 436 (Minn.App.1994) (use of trademarked name potentially infringed title). Of courts that have considered whether trademark and trade dress infringement constitutes âadvertising injury,â Brundage is among the most explicit. It held that the use of trademarks is inherently a form of advertising. Brundage, 818 F.Supp. at 558 (âit is not possible to allege a claim for trademark, servicemark or trade name infringement without the infringing mark being used to identify the goods or services to the public. This use qualifies as advertisingâ). In another decision with strong similarities to the instant case, Advance Watch Co., Ltd. v. Kemper National Insurance Co., 878 F.Supp. 1034 (E.D.Mich.1995), the court held that claims of trademark and trade dress infringement were advertising injuries within the scope of an insurance policy. The Advance Watch Court examined both this Courtâs May 2, 1994 Order and the Courtâs December 27, 1994 Order granting reconsideration and partial summary judgment, and chose to follow this Courtâs December 27, 1994 Order. Id. at 1037-39 . The Advance Watch Court was aware that the Clary decision had been depublished but found that it did not affect this Courtâs decision finding coverage for trade dress infringement, as the portion of the opinion which discusses trade dress does not cite Clary and is not affected by its depublication. Id. at 1039 n. 7. This Courtâs December 27, 1994 Order finding that American States owed a duty to defend Reboans in the Dunhill action is in agreement with decisions from numerous other jurisdictions around the nation that have examined this same coverage provision. The December Order is not clearly erroneous. Summary judgment as to the Dunhill claims was appropriate, because advertising was indisputably involved. Treating the allegations in the Hunting World ease as allegations of advertising injury is consistent with the case law notwithstanding the depublieation of Clary. Moreover, insofar as âadvertisingâ is ambiguous, there was a duty to defend because any ambiguity should be resolved in favor of defending the insured. See Gray v. Zurich Ins. Co., 65 Cal.2d 263, 275-77 , 54 Cal.Rptr. 104 , 419 P.2d 168 (1966) (carrier must provide defense if suit potentially seeks damages that would be covered by the policy). III. CONCLUSION The depublication of Clary, supra, by the California Supreme Court does not rise to *1258 the level of an âextraordinary circumstanceâ which would mandate relief under Rule 60(b)(6). As no California case is directly on point, the Courtâs analysis based largely upon case law from other jurisdictions and upon fundamental rules governing the interpretation of insurance policies still stands. Accordingly, American Statesâ motion to reconsider this Courtâs December 27, 1994 Order is DENIED. Defendant shall submit a proposed form of judgment by July 14, 1996. IT IS SO ORDERED. 1 . Nor could jurisdiction be predicated on Rule 54(b), because the district court had not entered partial final judgment and had not made the certification required by that Rule. 1 . In fact, Judge Caulfield's May order cites one case that held that use of a trademark in advertising could be both a misappropriation of an advertising idea and a title infringement. J.A. Brundage Plumbing v. Massachusetts Bay Ins., 818 F.Supp. 553 (W.D.N.Y.1993), vacated because of settlement, 153 F.R.D. 36 (W.D.N.Y. 1994). The May order implicitly rejected the *1257 first part of Brundage's holding: Misappropriation doctrine seems ill-suited to trademark cases. See Toho Co. Ltd. v. Sears, Roebuck & Co., 645 F.2d 788, 794 (9th Cir.1981). The December order did not revise the analysis with regard to misappropriation. The Ninth Circuit recently allowed misappropriation claims based on misuse of a name. Newton v. Thomason, 22 F.3d 1455, 1460-61 (9th Cir.1994). A name is, like a trademark, specifically protected by statute, and is â if Judge Caul-field's analysis is correct â therefore outside the scope of common-law misappropriation. The Newton court allowed the claims, but did not explicitly consider this argument. 2 . In its moving papers for the December motion, American States argues that Ninth Circuit Rule 36-3 makes Brundage uncitable. That rule states that a disposition other than an opinion or an order designated for publication has no prece-dential effect and may not be cited by courts in this circuit. This rule is directed at dispositions by courts within the circuit, since dispositions from other jurisdictions have no precedential effect even if they are published. There is no bar to citing a published or unpublished decision from another circuit, regardless of its precedential value within the other circuit.
Case Information
- Court
- N.D. Cal.
- Decision Date
- June 22, 1995
- Status
- Precedential