   
Will this Ruling Affect Your Claims?
If cell phones are currently excluded by a policy it might!
U.S. v Kramer, 2011 U.S. App. Lexis 2367, February 8, 2011, No. 10-1983
Is your cell phone comparable to a personal computer in the eyes of the law? The United States Court of Appeals for the 8th circuit believes so.
The definition of a "computer" under 18 U.S.C. §1030(e)(1) was defined as "an electronic, magnetic, optical, electrochemical, or other high speed data processing device performing logical, arithmetic, or storage functions, and includes any data storage facility or communications facility directly related to or operating in conjunction with such device...."
The 8th Circuit Court of Appeals acknowledged the definition under §1030(e)(1) as being broad and that a "cellular phone might not easily fit within the colloquial definition of a computer", however they are bound, not by the common understanding of the word computer, but by the specific definition set forth in §1030(e)(1). Furthermore, there is nothing in the statutory language that purports to exclude devices because they lack the capability to connect to the Internet. The Court essentially said that it would be up to the Sentencing Commission or Congress to address and correct any unintended or inappropriate application of the statute, and thus concluded that nothing in the language of §1030(e)(1) excludes cellular phones from the definition of "computer".
Could this ruling pull you in two different directions?
Maybe, if the policy verbiage is vague. For example, if an insureds' cell phone is part of a claim and it's going to cost $500 to replace, would the phone part of the claim usually be denied? What if the cell phone is considered a computer, and the policy clearly covers computers? |