Insurer Denies Claims from Models Regarding Unauthorized Use of Images in Strip Clubs
In a significant legal battle, twenty professional models have faced a setback in their lawsuit against three Massachusetts-based strip clubs. The models alleged that their images were used in commercial advertisements without their consent and without compensation. Recently, a federal district court in Massachusetts ruled against the models, denying their attempt to collect from one of the clubs’ insurers on a $1.9 million consent judgment against the club owners.
U.S. District Judge Allison D. Burroughs determined that Blackboard Specialty Insurance Co. is not obligated to cover the consent judgment under the two commercial general liability policies it issued for the clubs. The judge noted that most of the models’ images were posted on social media and websites between February 2016 and February 2018, which was prior to the effective dates of the insurance policies. Additionally, the court found that coverage for the use of their images was excluded under the personal and advertising injury provisions in both policies.
Models Sue Insurers to Collect on $2M Deal With Strip Clubs Over Use of Photos
Although the club owners denied the allegations, they agreed to monetary judgments against them, accompanied by confidentiality agreements that assigned all claims against their three insurers to the models. This led the models to file a lawsuit in federal court to collect the judgment from the insurance carriers.
Initially, in 2023, the models sought coverage from United Specialty Insurance Co. (USLI) and Watford Insurance Co. in addition to Blackboard. All three insurers initially declined to defend or indemnify the strip clubs. However, the models later settled with USLI and Watford, dismissing their claims against them in July 2023 and June 2024. Following this, the models filed an amended complaint, naming only Blackboard as a defendant.
The models contended that the clubs used their photos without consent, creating a misleading impression that each model was a stripper at one of the clubs or was otherwise associated with them. They argued that the clubs’ actions constituted commercial disparagement and violations of their privacy rights.
In response, Blackboard asserted that the claims were barred under the intellectual property exclusion, which applies to “personal and advertising injury” arising from the infringement of copyright, patent, trademark, trade secret, or other intellectual property rights. The insurer maintained that the club owners’ use of the plaintiffs’ images fell under this exclusion.
The models countered that their claims fell under an exception to this exclusion for “the use of another’s advertising idea.” According to Massachusetts law, an injury arises from the use of another’s advertising idea if the insured appropriated an idea for soliciting business or advertising.
However, the judge concluded that the plaintiffs failed to demonstrate that the underlying images were originally used for advertising purposes. Instead, the images were misappropriated from the models’ personal social media pages, which they utilized to market themselves, grow their fan base, and build their personal brands.
This case involves D&B Corp., MFRP Corp., and M.J.F. Bowery Corp., the owners of three clubs: The Golden Banana in Peabody, The Squire in Revere, and Ten’s Show Club in Salisbury. Notable models in this lawsuit include Tara Leigh Patrick, also known as Carmen Electra, Cielo Jean “CJ” Gibson, and Denise Trlica, known as Denise Milani. Some of the original 24 plaintiffs have settled with a New York club over similar allegations.
Interested in Carriers?
Get automatic alerts for this topic.
In a significant legal battle, twenty professional models have faced a setback in their lawsuit against three Massachusetts-based strip clubs. The models alleged that their images were used in commercial advertisements without their consent and without compensation. Recently, a federal district court in Massachusetts ruled against the models, denying their attempt to collect from one of the clubs’ insurers on a $1.9 million consent judgment against the club owners.
U.S. District Judge Allison D. Burroughs determined that Blackboard Specialty Insurance Co. is not obligated to cover the consent judgment under the two commercial general liability policies it issued for the clubs. The judge noted that most of the models’ images were posted on social media and websites between February 2016 and February 2018, which was prior to the effective dates of the insurance policies. Additionally, the court found that coverage for the use of their images was excluded under the personal and advertising injury provisions in both policies.
Models Sue Insurers to Collect on $2M Deal With Strip Clubs Over Use of Photos
Although the club owners denied the allegations, they agreed to monetary judgments against them, accompanied by confidentiality agreements that assigned all claims against their three insurers to the models. This led the models to file a lawsuit in federal court to collect the judgment from the insurance carriers.
Initially, in 2023, the models sought coverage from United Specialty Insurance Co. (USLI) and Watford Insurance Co. in addition to Blackboard. All three insurers initially declined to defend or indemnify the strip clubs. However, the models later settled with USLI and Watford, dismissing their claims against them in July 2023 and June 2024. Following this, the models filed an amended complaint, naming only Blackboard as a defendant.
The models contended that the clubs used their photos without consent, creating a misleading impression that each model was a stripper at one of the clubs or was otherwise associated with them. They argued that the clubs’ actions constituted commercial disparagement and violations of their privacy rights.
In response, Blackboard asserted that the claims were barred under the intellectual property exclusion, which applies to “personal and advertising injury” arising from the infringement of copyright, patent, trademark, trade secret, or other intellectual property rights. The insurer maintained that the club owners’ use of the plaintiffs’ images fell under this exclusion.
The models countered that their claims fell under an exception to this exclusion for “the use of another’s advertising idea.” According to Massachusetts law, an injury arises from the use of another’s advertising idea if the insured appropriated an idea for soliciting business or advertising.
However, the judge concluded that the plaintiffs failed to demonstrate that the underlying images were originally used for advertising purposes. Instead, the images were misappropriated from the models’ personal social media pages, which they utilized to market themselves, grow their fan base, and build their personal brands.
This case involves D&B Corp., MFRP Corp., and M.J.F. Bowery Corp., the owners of three clubs: The Golden Banana in Peabody, The Squire in Revere, and Ten’s Show Club in Salisbury. Notable models in this lawsuit include Tara Leigh Patrick, also known as Carmen Electra, Cielo Jean “CJ” Gibson, and Denise Trlica, known as Denise Milani. Some of the original 24 plaintiffs have settled with a New York club over similar allegations.
Interested in Carriers?
Get automatic alerts for this topic.
