Insurer Not Obligated to Cover Vending-Machine Company in Proposed Class Action Fraud Complaint
Case Study

Insurer Not Obligated to Cover Vending-Machine Company in Proposed Class Action Fraud Complaint

September 9, 2019

An insurance company represented by Goldberg Segalla partner Jonathan L. Schwartz doesn’t have to defend or indemnify a vending machine supplier in a proposed class action suit alleging the company charges hidden fees for credit card transactions in connection with the machines, a federal judge has ruled, dismissing the underlying suit for containing no covered claims.

In the decision, covered September 4, 2019 by Law360, U.S. District Judge Ronald A. Guzman granted the Goldberg Segalla team’s motion for summary judgment, releasing Amco Insurance Co. from any obligation to pay the vending-machine company’s costs in a suit by a consumer, Joshua Moyer. Moyer’s complaint, which alleges he and others lost money because of hidden fees, contains no claim that might be covered under the policy Amco issued to the company, Avcoa Inc.

The judge noted that Avcoa’s policies with Amco cover only property damage, bodily injury, and some advertising-related claims, none of which are included in Moyer’s November 2018 complaint. The still-pending suit in Cook County, Illinois, a putative class action alleging breach of contract, unjust treatment, and violations of the Illinois Consumer Fraud and Deception Business Practices Act, claims Avcoa didn’t disclose that its machines charge 10 cents extra per item on all credit and debit card purchases.

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