LA Lakers seek punitive damages from insurer in bad faith claim denial

On Tuesday 2 September, the Los Angeles Lakers filed suit¹ against its insurer, Federal Insurance Co., for bad faith denial of coverage for a Telephone Consumer Protection Act 1991 (TCPA) violation suit, which settled earlier this year.

David Emanuel brought the TCPA class-action lawsuit in 2012, claiming the Lakers were sending unwanted text message to his mobile device in violation of the Act. The Lakers sought defence and indemnity under its Corporate Liability Coverage policy from Federal; however, the insurer denied coverage claiming the suit fell within the “invasion of privacy exclusion.”