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7th Circuit Court of Appeals Rejects Insured’s Attempt to Use Broad Duty to Defend Standard to End Run Coverage Exclusions Wednesday, March 17, 2021
Zurich Am. Ins. Co. v. Ocwen Fin. Corp. (“Ocwen”), presents yet another example of why companies facing potential robo-call liability need more than Commercial General Liability Coverage to protect them from possible suits. In
Ocwen, the Seventh Circuit was asked to review the District Court’s grant of Zurich’s motion for judgment on the pleadings in connection with its coverage dispute with its insured, Ocwen Financial Corp. Ocwen is in the loan collection and servicing business and was sued by Tracy A. Beecroft in connection with its attempts to collect on a mortgage loan that Beecroft has discharged in bankruptcy. As a result of Ocwen’s aggressive pursuit Ms. Beecroft allegedly “suffered emotion and physical distress, including a stress-induced miscarriage, and she was later denied