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September 1, 2005
Update on Coverage for Blast Faxes
The Appellate Court of Illinois has rejected the reasoning of two key recent federal appellate decisions from the Seventh and Fourth Circuits that barred coverage for an insured's liability for blast faxes under the TCPA (Telephone Consumer Protection Act). Instead, the appellate court found the carrier to have a duty to defend under its coverage for advertising injury.
In Valley Forge Ins. Co. v. Swiderski Electronics Inc. (Ill. App. Aug. 17. 2005), the Illinois court addressed all of the issues discussed in the cases I addressed in my entry, Just the Fax. The Seventh Circuit opinion, written by Judge Easterbrook, not only rejects the policyholder's claim but in fact belittles it. In part because the prior Seventh Circuit decision, purporting to apply Illinois law, was so comprehensive and sweeping, the Illinois appellate decision is important because it categorically rejects it.
Posted by Marc Mayerson at September 1, 2005 4:51 PM
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