Dallas, TX (November 16, 2006) - In decisions of importance to corporate insurance policyholders, the Texas Court of Appeals has ruled that Samsung Electronics America is entitled to defense coverage for class action lawsuits based upon the alleged harm caused by electromagnetic fields, or EMFs..

In decisions of August 21, 2006 and October 18, 2006 in Samsung Electronics America, Inc., et al. v. Federal Insurance Company (05-04-01316-CV), the Court ruled that a member of the Chubb Insurance Group must provide the plaintiffs with a defense in four of five class actions.  The coverage action involves general liability policies which provide defense coverage for claims that seek "damages" because of "bodily injury."Chubb contested coverage because the class actions do not assert claims for damages due to diagnosed injuries, but rather seek monetary and other relief based upon allegations that EMFs from cell phones cause "biological injury" to users.  The trial court agreed with Chubb, but the Court of Appeals reversed, agreeing instead with Samsung that in four of the lawsuits the claims were premised upon alleged bodily injury and therefore trigger the defense obligation.  The fifth suit was brought under a consumer protection statute and contains atypical allegations.Many telephone manufacturers and service providers are defendants in the class actions, and there have been several court decisions on defense coverage for other companies.  The Texas Court of Appeals decision tips the weight of that authority in favor of coverage for these cases.  More importantly, it provides a sound basis upon which policyholders can argue for coverage for future actions as the plaintiffs' bar becomes more creative in its efforts to bring class actions based upon allegedly dangerous products without focusing upon the extent of injury and damages allegedly sustained by each individual member of a putative class.Samsung was represented by Anderson Kill & Olick, P.C. and the Potter Minton law firm.Finley Harckham, who represented Samsung for Anderson Kill, said:"By denying the attempt by Samsung's insurers to radically narrow the scope of their duty to defend policyholders in cases of alleged injury to consumers, the Texas Court of Appeals has acted to preserve the fundamental value of commercial general liability insurance."For additional information, please contact:Finley T. Harckham(212) 278-1543fharckham@andersonkill.com