Liquor Chain's Merchant Deal Nixed Coverage, Judge Says

Law360, New York (April 17, 2017, 10:59 PM EDT) -- A Texas federal judge said Monday a liquor store chain can't force its insurer to pay for a suit seeking to recover about $4 million charged by its credit card processor following two data breaches, reasoning that the chain's merchant agreement with the processor was excluded from its insurance policy.

U.S. District Judge Gray H. Miller in an unsealed opinion that explained his March 15 ruling held that Hanover Insurance Co. did not have a duty to defend Texas liquor store chain Spec's Family Partners Ltd., dismissing its claim that Hanover breached both its policy with the chain as well as...

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