Karin Aldama was quoted in multiple publications regarding the U.S. Court of Appeals for the Ninth Circuit 2-1 ruling that Telephone Consumer Protection Act claims are inherently based on breach of privacy in Emanuel v. Los Angeles Lakers, Inc.
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Karin Aldama, an insurance recovery partner at Perkins Coie, said the lead opinion "certainly provides ammunition for insurers to deny coverage" in TCPA suits.
But she added "it will be interesting to see how this is applied because it is such a divided decision."
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Karin Aldama, a partner at Perkins Coie LLP, wrote in an email Wednesday that the decision “confirms the difficulties policyholders face in obtaining insurance coverage for third-party TCPA claims.”
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“The appeals court opinion is very favorable for insurers. It basically interprets the TCPA to be a privacy based claim,” said Aldama, who focuses on complex insurance recovery matters.
“I’ve seen a number of decisions come down recently that address TCPA issues,” she said. “It’s a pretty heavy litigation area.”
With this decision, policyholders are essentially relegated to seeking coverage under commercial general liability policies, according to Aldama.
“But even there, courts have split on whether there is coverage, and some policies now specifically exempt TCPA claims,” Aldama said.
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“At first blush (the majority ruling) certainly seems to favor the insurer,” said Karin Scherner Aldama, a policyholder attorney and partner with Perkins Coie L.L.P. in Phoenix, who was not involved in the case.
But it is unclear what the case’s influence will be, given there are three different opinions, which is unusual, she said
"There is a question to me whether this broader holding that a TCPA violation is inherently an invasion of privacy claim will be applied as broadly as stated here in future cases," said Perkins Coie LLP partner Karin Aldama.
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