As we previously
reported, US Coachways entered into a $49.9 million Telephone
Consumer Protection Act class action settlement. Because the motor
coach leasing company could not fund the settlement, the company
tendered a claim for the action to its insurer, Illinois Union
Insurance Company, who subsequently denied coverage to US
Coachways. US Coachways assigned its rights against the insurer to
the named plaintiff and the putative class members.
Illinois Union has now filed a declaratory action suit in New
York federal court seeking a judgment that it has no coverage
obligations for the underlying lawsuit. Specifically, the insurer
alleges that the policy at issue is limited to actions that fall
within "the performance of professional services as a bus
charter broker for others for a fee." Illinois Union argues
that the underlying TCPA class action did not arise from the
performance of such services. "Rather, the underlying lawsuit
arose from the alleged use of the
