Zurich had no duty to defend in robocall case – appeals court

It is off the hook for a class-action lawsuit that was ultimately settled for $21.5 million

Zurich had no duty to defend in robocall case – appeals court

Insurance News

By Ryan Smith

Zurich American Insurance Co. is off the hook for the defense of a mortgage servicing company in  a class-action lawsuit regarding robocalls.

The insurer had no duty to defend Ocwen Financial Corp. against a 2015 class action, the 7th US Circuit Court of Appeals ruled Friday. The class-action suit was ultimately settled for $21.5 million, according to a Reuters report.

The appeals court’s three-judge panel ruled that there was no potential for insurance coverage in the case because Zurich’s policies clearly excluded plaintiff Tracee Beecroft’s claim that Ocwen’s repeated robocalls to her cell phone violated the Telephone Consumer Protection Act, the Fair Debt Collection Practices Act, and her common-law privacy rights, Reuters reported.

The lawsuit claimed that Ocwen’s unrelenting calls caused Beecroft such distress that she suffered a stress-induced miscarriage.

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