Gawker is being sued for trying to scam its own legal insurers (Here are the court docs)
Sometimes it's hard to cram all of the weird elements of a story into one headline.
For example, a more accurate heading to this story would be: New York-and-Hungary-and-Cayman Islands-based gossip site, Gawker, is being sued by the accident liability insurance company it tried to get to cover its legal costs when it was sued by Hulk Hogan for posting a videotape of him having sex with his friend's wife.
See? Hard. [Update: So hard, in fact that I had to update my own original headline to make clear it's the people paying their lawyers who are suing, not their actual lawyers. I also edited the post to show that Gawker is being sued for a litany of claims including invasion of privacy and infliction of emotional distress, but not libel.]
According to court filings, Arizona-based insurance company Nautilus is suing Gawker for the return of all the money it has so far paid out to cover Gawker's defense of a $100m lawsuit filed by the wrestler.
The insurance firm claims that Gawker's policy was never intended to cover actions for invasion of privacy and infliction of emotional distress, but rather was supposed to be a general policy to cover physical injuries suffered by staff at Gawker's New York office. It also claims that Gawker said they already had a separate insurance policy in place to cover the type of action brought by Hogan. While the details of their policy were being picked apart, Nautilus agreed to tentatively cover the costs of the defense -- but now it wants those costs back.
In the court documents embedded below, Nautilus asks a New York court to confirm that its policy was never intended to cover Gawker's legal bills, and also requests damages to the value of all of those costs to date.
I hope Gawker can afford a good lawy.... oh.