Insurers Found Liable In New Century Blast Fax Spat

Law360, New York (October 28, 2009, 4:55 PM EDT) -- A magistrate judge has found that a $2 million settlement paid by bankrupt New Century Mortgage Corp. to end a class action over unsolicited fax advertisements should be covered by its insurance policies under their “advertising injury” provisions.

Magistrate Judge Mary Pat Thynge issued her recommendations, the most recent development in the four-year case against Great Northern Insurance Co. and Federal Insurance Co., in the U.S. District Court for the District of Delaware on Monday.

Courts have issued mixed rulings on whether such “blast fax” claims...
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