KansasCity.com reports that the insurer for Collective Brands (the company that owns and operates Payless Shoes) has filed a lawsuit in federal district court in Kansas to establish that Adidas’ $305 million judgment against Payless is not covered by insurance. (View our prior posts about this litigation here.) The insurer, American Guarantee & Liability Insurance Co., contends that the judgment is not covered because the policy excludes coverage for intentional acts. The lawsuit also contends that Kansas law governs, and that punitive damages are uninsurable in Kansas. (The judgment includes a $137 million punitive damages award.)