Federal judge says exclusions bar BIPA class-action coverage
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A federal judge in Illinois Tuesday sided with a Hanover Insurance Group unit in finding two exclusions in a policy relieve it from defending a condiment maker against a suit alleging violations of the state’s Biometric Information Privacy Act.
The federal judge in Citizens Insurance Co. of America v. Mullins Food Products Inc. et al., granted Citizens’ request to reconsider a July 31 ruling denying the insurer’s summary judgment motion.
The judge concluded policy exclusions in a policy issued to Broadview, Illinois-based Mullins Food Products could be interpreted to include alleged violations of BIPA.
One exclusion related to the recording and distribution of material or information in violation of law and the other to the access or disclosure of confidential or personal information.
In reconsidering the earlier ruling, the judge was persuaded by the Illinois Court of Appeals’ December 2023 decision in Nat’l Fire Ins. Co. of Hartford & Cont’l Ins. Co. v. Visual Pak Co. Inc. In that case, a panel found that language in exclusions identical to those in Mullins’ policy from Citizens could include alleged violations of BIPA.
Citizens sued Mullins and Ricardo Galan in 2022, seeking a court’s determination that it is not obligated to cover a proposed class action filed by Mr. Galan in February 2018.
Mr. Galan said in his state court lawsuit that he worked at Mullins from August 2016 until July 2019 and was required to use biometric identifiers, such as fingerprints and handprints, to track time. According to Mr. Galan, Mullins allegedly disseminated that information in violation of BIPA.
The parties and their representatives did not respond to requests for comment.
