No Coverage for Attorney Fees in Consumer Protection Suit out of Massachusetts

The Massachusetts Supreme Judicial Court has ruled that attorney’s fees from a consumer protection lawsuit are not covered as part of bodily injury damages under a business liability policy, reversing a lower court that had found they were covered. The case is VT. Mut. Ins. Co. v. Poirier, 490 Mass. 161 (2022).

The Poiriers operated a cleaning business, Servpro, insured with a policy including a “Businessowners Liability Coverage Form” by Vermont Mutual, effective from December 17, 1998 – December 17, 2001. According to the policy, Vermont Mutual agreed to “pay those sums that the insured becomes legally obligated to pay as damages because of ‘bodily injury,’ ‘property damage,’ ‘personal injury’ or ‘advertising injury’ to which this insurance applies.” The policy also provides the insurer the “right and duty to defend the insured against any ‘suit’ seeking those damages.” The policy continues by stating that “[n]o other obligation or liability to pay sums or perform acts or services is covered unless explicitly provided for under the Supplementary Payments section.