Retail businesses continue to face class action lawsuits for various types of marketing campaigns (blast faxes, auto-calls, text messages, etc.). A Papa John’s pizza franchisee with more than 30 stores in Washington and Oregon is the target in one of these class actions as a result of text messages sent by a marketing firm that they had hired. The franchisee sought coverage from their general liability insurer, Oregon Mutual, despite a “Distribution of Material In Violation of Statutes” exclusion. That exclusion eliminates coverage for “any” bodily injury, property damage or personal and advertising injury “arising directly or indirectly out of any action of omission that violates or is alleged to violate” the TCPA or CAN-SPAM Act of 2003. The trial court ruled for the insured, finding that the exclusion did not apply because the insured had not committed the alleged statutory violations. But the Washington Court of Appeals granted an interlocutory appeal and reversed the decision yesterday. (Oregon Mut. Ins. Co. v. Rain City Pizza, LLC (.pdf)).
No Coverage For Text Message Claims Against Pizza Chain
No Coverage For Text Message Claims Against Pizza Chain
Wednesday, January 16, 2013