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Appeals Court Upholds Ruling That Insurance Carrier Not Liable to Cover Marketer For TCPA Suit

The Court of Appeals for the Eighth Circuit has upheld a lower court’s ruling granting summary judgment in favor of an insurance company that did not cover a client that was accused of violating the Telephone Consumer Protection Act.

A copy of the ruling in American Family Mutual Insurance Company v. Vein Centers for Excellence and St. Louis Heart Center can be accessed by clicking here.

St. Louis Heart originally filed a lawsuit against Vein Centers for Excellence for allegedly violating the TCPA by sending unsolicited advertisements via fax machines. Vein Centers went to its insurance company, American Family, to provide defense under two policies — a business owner’s policy and a commercial liability umbrella policy. However, under the business owner’s policy, there was an exclusion for personal or advertising injuries that violates or allegedly violates the TCPA. American Family subsequently filed for declaratory judgment seeking that it did not have to cover Vein Centers for the lawsuits. St. Lous Heart was later added as another defendant.

St. Louis Heart sought to dismiss the action, claiming the court lacked subject matter jurisdiction. The district court granted summary judgment in favor of American Family. St. Louis Heart appealed the ruling, which was affirmed by the Appeals Court.

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