Date of Case Completion:
August 31, 2017
Category:
Insurance Coverage Dispute / Declaratory Judgment / TCPA Class Action Defense
Summary:
McLemore Law PLLC, serving as local counsel for Allstate Insurance Company, successfully defended a declaratory judgment action arising from a class action lawsuit over unsolicited faxes. The Tennessee Court of Appeals affirmed the lower court’s ruling that Allstate had no duty to indemnify under its commercial policy’s “accidental event” or “personal injury” provisions.
Description:
Case Name: Allstate Insurance Company v. Kaigler & Associates, Inc.
Court: Tennessee Court of Appeals (Appeal from Chancery Court of Williamson County)
Appeal No.: M2016-01003-COA-R3-CV
Trial Court Case No.: 43913
The case stemmed from a class action lawsuit filed in Illinois, alleging Kaigler & Associates, Inc. violated the Telephone Consumer Protection Act (TCPA) by sending thousands of unsolicited faxes. Allstate, represented locally by McLemore Law PLLC, filed a declaratory judgment action in Tennessee to determine its coverage obligations under Kaigler’s business insurance policy.
Chancellor Jim Martin of the Williamson County Chancery Court granted summary judgment in Allstate’s favor, finding no duty to indemnify Kaigler under either the “accidental event” or “personal injury” provisions of the policy. While the “advertising injury” coverage was acknowledged, it was not in dispute in this action.
Kaigler appealed, arguing that the trial court had improperly issued an advisory opinion and failed to consider newly offered evidence in a post-judgment motion. On August 31, 2017, the Tennessee Court of Appeals affirmed the trial court’s ruling in full, upholding the grant of summary judgment in favor of Allstate.
This ruling reinforced important distinctions in commercial policy coverage as it applies to statutory violations like those under the TCPA.