2nd Circ. Frees St. Paul From Phone Card False Ad Coverage

Law360, New York (March 14, 2013, 3:01 PM EDT) -- The Second Circuit on Thursday found that St. Paul Fire and Marine Insurance Co. need not cover calling card provider Dollar Phone Corp. in a suit accusing the company of false advertising, based on a “poor quality or performance” exclusion.

A unanimous appeals panel determined that the St. Paul’s policy held by Dollar Phone contains an exclusion asserting that it won’t cover any advertising injury resulting from the failure of its products to perform as advertised. That exclusion was undoubtedly triggered by claims brought against Dollar...
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