Insurers Escape Coverage For $8M Fax Spam Settlement

Law360, New York (September 22, 2011, 7:36 PM EDT) -- A Pennsylvania federal judge ruled Thursday that Maryland Casualty Co. and Cumberland Mutual Fire Insurance Co. had no duty to cover an $8 million settlement between Express Products Inc. and a class of businesses that said they were bombarded by unwanted faxes.

U.S. District Judge Petrese Tucker granted summary judgment to the insurers after ruling that Express Products' faxes were intentionally sent, and not an accident that would have triggered coverage under commercial general liability policies with MCC and Cumberland. The insurers sued to escape coverage...
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