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Patricia O'Connell
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Laura Foggan Discusses Denial of Coverage Ruling in IBM Data Breach Case

July 1, 2015

Laura A. Foggan, chair of Wiley Rein’s Insurance Appellate Group, was quoted in a June 30 Law360 article about this year’s top privacy cases—including an important data breach coverage ruling in which Ms. Foggan represented three leading trade associations of property and casualty insurers as amici curiae.

In Recall Total Information Management Inc. et al. v. Federal Insurance Co. et al., the Connecticut Supreme Court upheld a lower court’s denial of commercial general liability (CGL) coverage for claims arising from the loss of computer tapes that contained the personal data of about 500,000 current and former IBM employees. The ruling echoed points advanced by Wiley Rein in an amicus brief on behalf of the American Insurance Association, the Complex Insurance Claims Litigation Association, and the Property Casualty Insurance Association of America.

The ruling is likely to have a significant impact, Ms. Foggan told Law360. “What happens when an encrypted laptop is lost at the airport, or a mobile phone is left in a restaurant?” she said. “These are common occurrences and similar to the issues in Recall Total. I think the impact at the end of the day will be very substantial and broad.”