ZIP Codes | The Coverage Inkwell

This week, the United States Court of Appeals affirmed Big 5 Sporting Goods Corporation, a case in which the trial court had held that “personal and advertising injury” coverage did not exist for violation of California’s Song-Beverly Act, even where common law allegations of invasion of privacy were alleged in connection with the unlawful collection of ZIP Codes. See Big 5 Sporting Goods Corporation v. Zurich American Ins. Co., No. 13-6249 (9^th Cir. Dec. 7, 2015), affirming Big 5 Sporting Goods Corporation v. Zurich American Ins. Co., 957 F. Supp. 2d 1135 (C.D. Cal. 2013).

In Big 5, the insured was sued in multiple underlying class action lawsuits alleging invasion of privacy and violation of the Song-Beverly Act from the practice of requesting ZIP Code information during credit card transactions. See Big 5 Sporting Goods, 957 F. Supp. 2d at 1138. Some of the class actions alleged both violation of the Song-Beverly Act as well as common law negligence and invasion of privacy claims. Id. The insured sought coverage under “personal and advertising 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.” Id. at 1140. Read More

In OneBeacon Amer. Ins. Co. v. Urban Outfitters, 2015 WL 5333845 (3d. Cir. Sept. 15, 2015), the United States Court of Appeals for the Third Circuit held that three underlying class action lawsuits filed against Urban Outfitters and Anthropologie, Inc. did not allege “personal and advertising injury.” The Third Circuit held that for Coverage B “oral or written publication, in any manner, of material that violates person’s right of privacy,” (1)“privacy” refers only to the right of secrecy, not the right of seclusion; (2) “publication” requires dissemination of information to the public at large, and (3) “in any manner” does not modify or change the meaning of “publication” to a lesser standard.

In the spirit of full disclosure, I represented OneBeacon America in the litigation with my colleagues at White and Williams LLP. The facts of the matter are straightforward. Read More

The Coverage Inkwell

Emerging Coverage Issues in Intellectual Property, Privacy, and Cyber Liability

Tag Archives: ZIP Codes

The Ninth Circuit Holds There Is No Coverage for Violation of the Song-Beverly Act

Third Circuit Holds “Privacy” Means Secrecy, “Publication” Means Dissemination to Public, and “in Any Manner” Does Not Change Meaning of “Publication”