In Owners Ins. Co. v. European Auto Works, Inc., — F.3d —-, 2012 WL 4052406 (8th Cir. 2012), the Court of Appeals for the Eighth Circuit found insurance coverage for a TCPA unsolicited fax case under the insured’s standard form CGL policy.
Owners Insurance Company and Auto–Owners Insurance Company brought this declaratory judgment action seeking a ruling that their insurance policies issued to European Auto Works, Inc., doing business as Autopia, do not cover class claims brought in state court by Percic Enterprises, Inc. The state court complaint alleged that Autopia violated the Telephone Consumer Protection Act ( TCPA), 47 U.S.C. § 227(b)(1)(C), by sending unsolicited fax advertisements. ¶ In this federal action the insurers argue that such claims do not fall within the policy provisions for “advertising injury” or “property damage.” After a settlement was reached in the state action, the federal district court FN1 concluded that damages sustained by sending unsolicited fax advertisements in violation of the TCPA are covered under the advertising injury provision in the policies. The insurers appeal, arguing that TCPA claims are not covered by the policies. Applying standard Minnesota principles of insurance contract interpretation where unambiguous words are given their “plain, ordinary, and popular meaning,” Gen. Cas. Co. of Wis. v. Wozniak Travel, Inc., 762 N.W.2d 572, 575 (Minn.2009) (citation omitted), and ambiguous language is construed in favor of the insured, Minn. Mining & Mfg. Co. v. Travelers Indem. Co., 457 N.W.2d 175, 179 (Minn.1990), we affirm.