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Fri Holdings Inc. v. Hartford Casualty Insurance Co.

3/18/1999

ng of the manner by which another advertises its goods or services." (J.A. Brundage Plumbing v. Massachusetts Bay Ins. (W.D.N.Y. 1993) 818 F.Supp. 553, 557, emphasis added.) What, after all, is a frequent flyer mile program but an advertising gimmick? Thus it is not surprising that in their complaints Continental defined its OnePass program as "a promotion designed to encourage travel on Continental and to develop passenger loyalty," while Northwest described its Worldperks program as designed "to encourage travel on Northwest and to develop passenger loyalty by encouraging a closer and more continuous relationship between Northwest and its best customers." (Emphasis added.)


Hartford does not dispute that FRI's advertising used the very proprietary terms the airlines themselves devised to refer to their frequent flyer programs: "OnePass" for Continental, and "Worldperks" and "Fly-Write" for Northwest. That sounds like misappropriation of advertising ideas to us.


The judgment is affirmed to the extent that it impliedly incorporates the ruling on the motion for summary adjudication that Hartford owed FRI a duty of defense. It is also affirmed to the extent it impliedly denies FRI lost profits and punitive damages on FRI's bad faith claim. However, because there was no bad faith in the first place, the judgment is reversed to the extent that it declares that Hartford denied FRI's claim in bad faith and to the extent that it awards FRI attorney fees. The cause is remanded with directions to enter judgment for Hartford on the bad faith cause of action. In the interests of Justice each party will bear its own costs on appeal.


SILLS, P. J.


WE CONCUR:


WALLIN, J.


CROSBY, J.


ORDER DIRECTING PUBLICATION OF OPINION


Pursuant to rules 976(b) and 978 of the California Rules of Court, the request by respondent for publication of the opinion of this court filed February 16, 1999, is hereby GRANTED.


The opinion is ordered published in the Official Reports.


SILLS, P. J.


WE CONCUR:


CROSBY, J.


WALLIN, J.*


* Retired Associate Justice of the Court of Appeal, assigned by the Chief Justice pursuant to California Constitution, article VI, section 6.






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