Evanston May Owe $96 Million of $175 Million Spent By MGA In Defense Of Mattel Litigation, According to MGA.
As reported by Amanda Bronstad in a February 28, 2012 post in The National Law Journal, U.S. District Judge David O. Carter (C.D. Cal.) ordered, via pretrial motions on February 24, 2012, Evanston Insurance Company, one of MGA Entertainment Inc.’s insurers, to pay $8.5 million to insurers Chartis Specialty Insurance Co., National Union Fire Insurance Co. of Pittsburgh, and Lexington Insurance Co., which covered some of MGA’s defense fees/costs in the arduous litigation battle with Mattel Inc. over the Bratz doll. District Judge Carter determined that Evanston owed two ninths of the amounts paid by Lexington and the excess carriers. The court granted some deductions, but rejected most of the challenges raised by Evanston. A bifurcated trial for Evanston as against plaintiff MGA is scheduled to begin soon, with the bench portion starting on March 13 and the jury phase following on April 3. The trial will determine if Evanston withheld payments in bad faith and whether its parent is the alter ego of Evanston. MGA claims that Evanston is responsible for $96 million of its $175 million in defense fees and costs incurred during the Bratz litigation.