A legal battle over the duty to defend has emerged between two prominent companies, revealing intricate contractual obligations and allegations of negligence. On July 1, 2024, Promote Mexico, LLC filed a complaint in the Court of Appeal of the State of California against Monster Energy Company, challenging a trial court's decision that denied their motion for summary adjudication.
The dispute centers around an incident at the 2018 Baja 1000 race where Magda Angel, a spokesmodel for Monster Energy Company, was allegedly injured. Angel filed a lawsuit on August 12, 2019, naming both Monster and Promote Mexico among the defendants. She claimed that both entities had failed to ensure her safety during the event. The core of Promote Mexico's petition lies in section 6.01(b) of their "Television Sponsorship Agreement" with Monster, which they argue obligates Monster to defend them against claims arising from Monster’s gross negligence.
Promote Mexico contends that Angel’s allegations implicate gross negligence on Monster's part, thus triggering their duty to defend under the agreement. However, Monster opposed this interpretation and argued that the agreement did not cover such claims. They also raised an alternative argument suggesting that the signature on the agreement was forged, rendering it void. The trial court sided with Monster initially but did not address the forgery claim.
Promote Mexico seeks a writ of mandate to vacate the trial court’s order and remand for further consideration of Monster’s forgery argument. They argue that Angel’s broad allegations inherently contain potential claims of gross negligence against Monster, thereby necessitating a defense as per their contractual agreement. They emphasize that interpreting otherwise would undermine the clear language stipulating mutual defense obligations.
Representing Promote Mexico are attorneys from Procopio, Cory, Hargreaves & Savitch including Kendra J. Hall and John D. Alessio among others. Meanwhile, Shook, Hardy & Bacon attorneys M. Kevin Underhill and Marc P. Miles represent Monster Energy Company in this contentious case identified as B332617 before Judge Bruce G. Iwasaki.