Select Comfort Sues Insurer For Sleepy's Suit Coverage

Law360, Los Angeles (December 20, 2012, 6:49 PM EST) -- Sentry Insurance was hit with a lawsuit in Minnesota federal court Thursday alleging it broke its duty to defend mattress company Select Comfort Corp. in a $30 million competition suit filed by rival Sleepy's LLC.

Select Comfort alleges Wisconsin-based Sentry backed out of defending and indemnifying it after Sleepy's sued it for more than $30 million in New York in 2007 for breach of contract, unfair competition, slander and seven other causes of action.

When notified of the Sleepy's suit in November 2007, Sentry declined to...
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