Yelitza V. Dunham of Winston & Strawn LLP writes:
A group of Liberty Mutual insurance companies successfully obtained declaratory relief that they had no duty to defend Aspen Way Enterprises and Aaron’s Inc. from two underlying actions alleging that spyware had been installed on rent-to-own computers.
One of these, the Byrd Action, was a putative class action brought by customers who alleged that the policyholders received private data after activating spyware on the leased computers. The Byrds brought four causes of action, including violation of the Electronic Communications Privacy Act (ECPA) and invasion of privacy. In the coverage action, Liberty Mutual argued there was no coverage under its various commercial general liability policies.
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