Sonic Automotive Denied Coverage For Hidden Fee Suits

Law360, New York (April 9, 2014, 4:05 PM EDT) -- An Ohio federal judge on Tuesday let two insurers off the hook in automobile retailer Sonic Automotive Inc.'s suit seeking coverage for underlying actions alleging it misled customers into paying additional fees, finding that Sonic's deception was intentional.

U.S. District Judge Susan J. Dlott granted summary judgment to Chrysler Insurance Co. and Great American Assurance Co. and denied Sonic's motion, ruling that the underlying lawsuits didn't allege a negligent act or an error or omission, so the settlements are not covered by Sonic's policies. The two suits alleged that Sonic charged them for various insurance products hidden in their contracts when...

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