Insurer Ducks Claims by Models Over Strip Clubs’ Use of Their Images Without Consent

Twenty professional models who sued three Massachusetts-based strip clubs alleging that the clubs used their images in commercial advertisements without their consent and without paying them have been denied their bid to collect from one of the clubs’ insurers on a $1.9 million consent judgment against the club owners.

The federal district court in Massachusetts recently ruled that Blackboard Specialty Insurance Co. is under no obligation to cover the consent judgment under the two commercial general liability policies it wrote for the clubs.

U.S. District Judge Allison D. Burroughs found the insurer is under no obligation because most of the models’ images were posted on social media and websites between February 2016 and February 2018, which was before either policy period began, and also that coverage for the use of their images by the owners was barred under exclusions to personal and advertising injury in both policies.

Models Sue Insurers to Collect on $2M Deal With Strip Clubs Over Use of Photos

The club owners had denied the allegations but agreed to monetary judgments being entered against them along with confidentiality agreements in which they assigned all of their claims against their three insurers to the models, who sued in federal court to collect the judgment from the carriers.

In their initial lawsuit in 2023, the models sought coverage action against United Specialty Insurance Co. (USLI) and Watford Insurance Co. in addition to Blackboard. At first all three insurers declined to defend or indemnify the strip clubs. However, the models settled with USLI and Watford, dismissing their claims against them in July 2023 and June 2024. Thereafter, the models filed an amended complaint naming only Blackboard as a defendant.

The models alleged that the clubs used their photos without consent to create the false impression with consumers that each model was a stripper at one of the clubs, promoted or endorsed the clubs, or was otherwise associated with the clubs. They claimed that the clubs’ actions amounted to commercial disparagement and violations of their privacy.

Blackboard argued that since the claims are premised on the club owners’ use of the plaintiffs’ image and likeness, they are barred under the intellectual property exclusion, which applies to “‘personal and advertising injury’ arising out of the infringement of copyright, patent, trademark, trade secret or other intellectual property rights.”

The models maintained that their claims fell under an exception to the exclusion for “the use of another’s advertising idea.” Under Massachusetts law, an injury arises out of the use of another’s advertising idea “if the insured took an idea for soliciting business or an idea about advertising.”

According to the judge, the plaintiffs did not establish that the underlying image was originally used for advertising purposes. Instead, the images were misappropriated from the plaintiffs’ own social media pages, which each uses to market herself to potential clients, grow her fan base, and build and maintain her brand.

The Massachusetts case involved D&B Corp., MFRP Corp., and M.J.F. Bowery Corp., the owners of three clubs: The Golden Banana in Peabody, The Squire in Revere, and Ten’s Show Club in Salisbury.

The models include Tara Leigh Patrick a/k/a Carmen Electra, Cielo Jean “CJ” Gibson, and Denise Trlica a/k/a Denise Milani. Several of the original 24 plaintiffs settled with a New York club over similar allegations.