Tynan's Nissan v. Am. Hardware Mut. Ins. Co

In Tynan's Nissan v. Am. Hardware Mut. Ins. Co. 917 P.2d 321 (Colo.App. 1995), a TILA endorsement resembled the one at issue here: it obligated the insurer to pay "all sums which Tynans 'shall become legally obligated to pay as damages solely because of error or omission in failing to comply with 130, Civil Liability, of Title I (Truth in Lending Act) of the Consumer Protection Act (Public Law 90-321; 82 Stat. 146, et. seq.).'" (917 P.2d at p. 323.) The Colorado Court of Appeals agreed with the lower court that no coverage was provided for the underlying lawsuit, which was brought under that state's Uniform Consumer Credit Code, not under the TILA. The insured automobile dealer protested that it had a reasonable expectation of coverage as would an ordinary layperson. The court rejected that argument, as the asserted expectation was "contrary to the plain and ordinary meaning of the policy language . . . ." As that language was unambiguous, coverage was precluded. (917 P.2d at p. 324.)