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Federal Judge Rules State Compensation Insurance Fund Does Not Have To Defend Porn Studio, Cybernet-Kink.com, Against Intentional Tort Law Suits From Porn Actors
By Lonce Lamonte - November 28, 2017

Yvonne Gonzalez Rogers, United States District Court Judge for the Northern District of California, ruled yesterday, November 27th 2017, in a written ruling in favor of State Compensation Insurance Fund (SCIF or State Fund) and against Cybernet, dba kink.com.  Cybernet’s motion demanded indemnification from SCIF for intentional tort actions against the porn studio from three former porn actors.  The judge ruled that SCIF owes Cybernet no such indemnification:

“… the Court GRANTS State Fund’s motion for partial summary judgment and DENIES Cybernet’s motion for partial summary judgment.  In summary, the Court FINDS that State Fund has no duty to defend Cybernet because either (i) plaintiffs’ claims are exclusively governed by California’s workers’ compensation system or (ii) the claims which allege Cybernet intentionally caused damages pursuant to the Policy are barred thereunder.”

Cybernet produces adult films and runs the website Kink.com, which specializes in depictions of various sexual fetishes including discipline and bondage. The company is facing at least three lawsuits from actors who say they contracted HIV while performing. In response to the litigation, Cybernet looked to the State Fund to provide coverage.

State Fund, in turn, argued it has no responsibility to indemnify this porn studio.

In her decision, the U.S. District Court Judge, Yvonne Gonzalez Rogers, analyzed whether the actors' claims against Cybernet are preempted because workers' compensation claims provide the exclusive remedy for injuries. This brings the judge to examine whether there was any intentional conduct that would bring Cybernet beyond the boundaries of workers' comp.

"In this regard, the Court considers plaintiffs’ respective complaints which effectively allege two types of conduct: non-intentional and intentional," writes Judge Rogers. "Thus: Doe, Adams, and Rogers each allege that they understood that Cybernet would require performers to use condoms and other safety barriers and 'ensure that [plaintiffs were] ... empowered to stop or alter a scene at any time.'  Plaintiffs further aver that they experienced several incidents of unexpected and aggressive behavior which plaintiffs were powerless to control. Plaintiffs assert that each contracted HIV during the above-referenced incidents and that they were not the type of performances in which plaintiffs had agreed to perform."

Judge Rogers finds these claims, based on the alleged intentional conduct of Cybernet, are not necessarily preempted by the exclusive remedy provision.

However, the judge then turns to the terms of the Cybernet's policy with SCIF. One aspect of the policy was an exclusion for damages or bodily injury intentionally caused or aggravated by the insured. The judge thus concludes that no potential for coverage exists in light of the plain language of the policy.

Nov27th2017_USDistJudgeRuling_Cybernet

 

lonce@adjustercom.com; Lonce Lamonte, journalist  

 
 

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