The Second Circuit Court of Appeals has ruled that insurance companies are not required to defend a Texas-based ghost gun seller, Primary Arms, in public nuisance lawsuits brought by New York state and local governments. The panel determined that the dealer’s intentional marketing of ghost gun components, designed to evade firearm regulations, does not constitute an “accident,” thus exempting insurers Granite State Insurance and National Union Fire from coverage obligations.
This ruling comes amidst rising concerns over gun violence linked to untraceable firearms. The court’s opinion emphasized that the deliberate actions of Primary Arms contribute to a predictable increase in public safety risks, challenging the framework of liability and accountability for gun retailers. U.S. Circuit Judge Denny Chin noted the clear intent to bypass existing gun laws, underscoring the significant implications for future liability in the industry.
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