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California’s State Compensation Insurance Fund (SCIF or State Fund) filed in federal court, in the northern district of California, Tuesday, June 13th 2017, asserting that it is not obligated to defend its workers’ compensation insured, pornography company Kink.com, against three ostensible employee porn stars who are suing Kink in civil court for negligence based causes of action.

John Doe, Cameron Adams, and Joshua Rodgers sued Cybernet Entertainment's Kink.com in the summer of 2015, claiming that they contracted HIV while performing in pornographic videos two years earlier.

Cybernet had its workers' compensation insurance through State Fund during a period from 2012 to 2013, during which time the alleged injuries occurred.  State Fund accepted the claims and argues it has already paid appropriate medical expenses which it is still defending before the Workers Compensation Appeals Board.

Cybernet asked the court for a declaration that State Fund is obligated to defend it in the civil lawsuits under the employer's liability provision, Part 2, of the insurance policy.  Initially, SCIF agreed to a limited defense, but now is resisting any further obligation to defend with a motion for summary judgment that argues it has no duty to defend Cybernet (Kink) in the civil action according to the workers’ comp policy.

State Fund is adamant that the five negligence-based causes of action in the performers' lawsuits aren't covered by Kink.com’s workers’ comp insurance.  The plaintiffs allege that Kink’s intentional acts "were despicable and committed knowingly, willfully and maliciously, with the intent to harm, injure, vex, annoy and oppress Plaintiff and with a conscious disregard of Plaintiff’s rights, health and safety," but the workers’ compensation policy specifically excludes "damages or bodily injury intentionally caused or aggravated by" Cybernet.

Four of the civil suit allegations are:

• Intentional/Fraudulent Misrepresentation
  
• Civil Conspiracy to Commit Fraud
  
• Intentional Infliction of Emotional Distress
  
• Battery

The hearing is set to take place on July 18th at 2:00 pm in court room 1 of the United States District Court, Northern District of California, Oakland Division.

State Compensation Insurance Fund motion - June 13th 2017

lonce@adjustercom.com; Lonce LaMon, journalist; copyright adjustercom and Lonce LaMon, all rights reserved

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