Mattel Insurance Dispute Over Rock ’n Play Sleeper Claims Advances to Trial

Mattel and Fisher-Price are engaged in a legal dispute over insurance coverage related to product liability claims involving the Rock ’n Play Sleeper, which allegedly caused injuries and deaths of infants. The conflict centers on how to allocate claims spanning nine years of insurance policies provided by multiple insurers including ACE American, Aspen Insurance UK, Great American, and Starr Indemnity.

The Superior Court of Delaware ruled that all claims represent a single “occurrence” under the terms of the policies, with allocation of claims above the primary level based on the year the injury occurred. The court clarified that Great American is responsible for defending claims allocated to the 2013 policy year and addressed contractual terms such as the Corridor Retention endorsement and the inclusion of specific clauses like the Lot or Batch Clause in certain umbrella policies.

Chubb sought early appellate review of these rulings, but the Delaware Superior Court denied certification for interlocutory appeal, a position upheld by the Delaware Supreme Court, which cited the absence of urgent need for intervention before a full trial set for April 2026.

This dispute underscores the complexities of multi-year product liability claims and the challenges of interpreting layered insurance policies and endorsements in coverage allocation. With the Supreme Court's ruling, the case will proceed to trial to resolve outstanding coverage issues, reflecting key considerations for insurers and insureds in managing extended product liability exposures involving multiple policies and insurers.