Insurer Stripped Of Coverage Duties For Cabaret Spam Suits

Law360, New York (January 25, 2012, 1:44 PM EST) -- A Texas federal judge ruled Tuesday that Indemnity Insurance Corp. did not have to defend Rick's Cabaret International Inc. against two class actions accusing the strip club chain of illegally barraging customers with unwanted text messages, ruling policy exclusions barred coverage.

The two class actions, which allege violations of the Telephone Consumer Protection Act, both fall under so-called field-of-entertainment exclusions barring coverage for claims tied to Federal Communications Commission rules and laws, U.S. District Judge Nancy Atlas ruled, dismissing the insurance suit.

Rick’s sued Indemnity in...
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