All Consuming - Financial Litigation Insights, Volume 2, Issue 12

TCPA CLASS COUNSEL LOSES MILLIONS: $60MM+ Class Recovery Looks to be Down the Tubes as Eleventh Circuit Finds No Insurance Coverage for TCPA Suit -

"The policy at issue has an exclusion for claims 'arising out of' invasions of privacy."

Why this is important: When prosecuting claims on behalf of clients, one of the most important aspects of litigation management is the ability to actually recover or receive payment for any settlement, judgment, or jury award. Insurance coverage is often a critical component of plaintiffs' ability to recover when the company is small – especially when the amount is above the company’s insurance deductible. Unfortunately, coverage issues almost always are decided after the fact. In this case, the parties settled a TCPA class action for $60 million. Thereafter, the insurer denied coverage for the claims and refused to pay. The business assigned the right to sue to the plaintiff in exchange for an agreement not to pursue the $60 million from the business. The district court held that the insurance policy did not cover the parties’ TCPA claims due to an exclusion for invasion of privacy claims. On appeal, the Eleventh Circuit affirmed. This case may set a precedent for insurance coverage for TCPA cases across the country. Businesses with current or pending TCPA claims should carefully review any reservation of rights letters and their insurance policies for potential exclusions relating to TCPA claims.

Please see full Newsletter below fort more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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