Skechers USA Inc. has filed a lawsuit against HDI Global Insurance Co., seeking over $750,000 in damages. The footwear and apparel company alleges that HDI Global breached its contract by failing to cover litigation costs incurred in defending a consumer class-action lawsuit. The suit was filed in Los Angeles Superior Court and also includes claims of tortious breach of contract and unfair competition.
According to court documents, Skechers purchased a commercial liability insurance policy from HDI Global in Los Angeles in 2019. The current dispute stems from a proposed class-action lawsuit, filed in Northern California in 2023 by Alicia C. Valdivia, against Skechers. Valdivia’s suit claims consumers were harmed by accidents caused by the alleged lack of slip-resistance in Skechers shoes purchased from November 2019 onward.
The core of Skechers’ complaint against HDI Global centers on the insurer’s alleged obligations under the policy. The suit contends that HDI Global was contractually bound to cover Skechers’ defense in the Valdivia action. However, Skechers alleges that HDI Global failed to fulfill this obligation, resulting in Skechers having to shoulder “substantial fees and costs” related to the defense.
Skechers claims that HDI Global’s refusal to indemnify the company was carried out “with a willful and conscious disregard of Skechers’ rights and with the intent to injure Skechers.” The lawsuit seeks to recover the costs Skechers incurred due to the alleged breach of contract.
