Yahoo! Case Update

Last month, we reported on the California Supreme Court’s decision in Yahoo, Inc. v. National Union Ins. Co. of Pittsburgh, PA involving coverage for claims under the Telephone Consumer Protection Act of 1991 (“TCPA”). The Court concluded: “A CGL insurance policy that provides coverage for “personal injury,” defined, in part, as “injury . . . arising out of . . . [o]ral or written publication, in any manner, of material that violates a person’s right of privacy,” can cover liability for violations of the right of seclusion if such coverage is consistent with the insured’s objectively reasonable expectations.

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A Reminder: He Who Hesitates May Be Lost

The Ninth Circuit Court of Appeals held in an unpublished decision in Chevron Env’t. Mgmt. Co. v. Env’t. Prot. Corp. (Chevron Env’t. Mgmt. Co.), No. 20-16206, 2022 WL 10966098 (9th Cir. Oct. 19, 2022) that an insurer’s attempt to intervene in an underlying action against its insured was untimely as the insurer received notice of its insured’s suspended status five months before plaintiff obtained an $18 million default judgment against the insured.

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CALIFORNIA SUPREME COURT ISSUES LANDMARK RULING AFFECTING CGL INSURERS

On November 17, 2022, the California Supreme Court issued its Opinion in Yahoo, Inc. v. National Union Ins. Co. of Pittsburgh, PA. This landmark decision affecting CGL insurers holds that class action complaints alleging violations of the federal Telephone Consumer Protection Act of 1991 (TCPA), 42 U.S.C. § 227, are covered under a CGL policy’s “personal and advertising injury” coverage applicable to injury arising from the offense of “[o]ral or written publication, in any manner, of material that violates a person’s right of privacy.”

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