Facts

The Los Angeles Lakers Inc. sued its insurer, Federal Insurance Co., in connection with an underlying putative class action filed against the Lakers for alleged violations of the Telephone Consumer Protection Act. The underlying lawsuit was ultimately dismissed.

PLAINTIFF'S CONTENTIONS:
Plaintiff alleged that defendant had a duty to defend it against the underlying lawsuit and its refusal to do so constituted a breach of contract and tortious breach of the implied covenant of good faith and fair dealing.

DEFENDANT'S CONTENTIONS:
Defendant contended that the relevant policy excluded coverage for the invasion of privacy. Consequently, because the underlying lawsuit concerned the alleged invasion of privacy, it was therefore excluded from coverage pursuant to the policy. Also as a consequence, defendant had such duty to defend plaintiff in the underlying lawsuit. Defendant moved to dismiss the complaint.

Result

The court granted Federal Insurance's motion to dismiss with prejudice.