TCPA Exclusion Upheld by the Eleventh Circuit

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In a lawsuit brought by a distribution and marketing company, the policyholder sought coverage for a lawsuit alleging that it sent “unwanted ‘junk’ faxes in violation of the [Telephone Consumer Protection] Act.”  The insurer denied coverage due to the exclusion concerning violation of statutes in connection with sending, transmitting or communicating any material or information.

The Eleventh Circuit affirmed the decision of the Middle District Court of Florida finding that the exclusion was not ambiguous or void as against public policy.  Specifically, the Circuit Court noted that “[a]ny reasonable interpretation of this language excludes coverage for violations of the Act.”  It also found that the policy as a whole provided extensive coverage and so the exclusion did not lead to absurd results.

Interline Brands, Inc. v. Chartis Specialty Insurance Company (11-cv-00731) (11th Cir.)