Travelers Escapes Coverage Fight Over Fax Ad Class Action

Law360, New York (May 15, 2012, 7:12 PM EDT) -- An Ohio magistrate judge on Tuesday recommended that Travelers Property Casualty Co. be allowed to duck defense and settlement costs for two companies sued for sending businesses junk fax advertisements because the Travelers policy contained an unsolicited communications exclusion.

U.S. Magistrate Judge George J. Limbert said Travelers shouldn't have to cover the settlement costs of a class action against MDC Acquisition Co. and GRH Enterprises Inc. for violations of the Telephone Consumer Protection Act, as amended by the Junk Fax Prevention Act of 2005. The insurer had notified the companies in 2005 that it had added an endorsement excluding coverage for...

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