Spec’s sues insurance provider for legal fees related to data breaches

Ah, here’s the explanation I didn’t have the other day. Joe Martin reports:

Houston-based Spec’s Family Partners Ltd. is suing its insurance provider for over $1.3 million in legal fees stemming from two data breaches, according to court documents.

Spec’s filed a lawsuit in the Southern District of Texas in Houston Feb. 19 against the Hanover Insurance Co. that alleges Hanover has refused to pay for defense expenses related to a 2014 lawsuit in Tennessee. In Tennessee, Specs retained local counsel Butler Snow LLP to represent the company. In its lawsuit, Spec’s states that “Hanover has wrongfully asserted that the attorney’s fees incurred in the Tennessee Litigation do not qualify as ‘defense expenses’ but are incurred solely in the pursuit of so-called affirmative claims against FirstData.”

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