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Insurance Claim – Duty to Defend – TCPA Violation
By: Derek Hawkins//June 28, 2021//
Listen to this article7th Circuit Court of Appeals
Case Name: Mesa Laboratories, Inc., v. Federal Insurance Company
Case No.: 20-1983
Officials: EASTERBROOK, KANNE, and SCUDDER, Circuit Judges.
Focus: Insurance Claim – Duty to Defend – TCPA Violation
Mesa Laboratories, Inc., was sued for sending unsolicited fax advertisements, but when it sought a defense from its insurer, its claim was denied. In support of the denial, the insurer cited an exclusion in the policy barring coverage for any claims “arising out of” the Telephone Consumer Protection Act (“TCPA”) of 1991.
The question in this case is straightforward: When an insurance policy provides that the insurer has no duty to defend its insured against any claim “arising out of” the TCPA, does that exclusion extend to common‐law claims arising from the TCPA‐violating conduct? The district court said yes, and we agree. We therefore affirm the district court’s decision granting judgment on the pleadings in favor of the insurer.
Affirmed
Derek A Hawkins is Associate Corporate Counsel, IP at Amazon.
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