X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

The Illinois Supreme Court soon will be addressing whether the statutory penalty of $500 per faxed advertisement allowed under the federal Telephone Consumer Protection Act (the “TCPA”), 47 U.S.C. § 227 et seq., is in the nature of punitive damages and uninsurable as a matter of public policy. The court also may address the insurability of punitive damages generally. 

The issues arise in Standard Mutual Ins. Co. v. Lay, No. 114617.  In this case, Locklear Electric, Inc., received unsolicited advertisements by fax from the Ted Lay Real Estate Agency. Locklear filed a class action against the agency for violating the TCPA and the Illinois Consumer Fraud and Deceptive Practices Act and for committing common law conversion. The agency eventually settled the underlying class action by permitting the federal court to enter judgment against it for $1.7 million in statutory penalties and assigning its rights against its insurer, Standard Mutual Insurance Company, to Locklear and the class Locklear represented. The trial court entered summary judgment in favor of Standard, an intermediate appellate court affirmed, and the case now is before the Illinois Supreme Court. 

This premium content is locked for
Insurance Coverage Law Center subscribers only.

Start a free trial to enjoy unlimited access to the single source of objective legal analysis, practical insights, and news for the insurance industry.

  • Access the most current expert analysis and daily developments across jurisdictions
  • Solve complex research issues with expert tools and intelligence
  • Tap into insurance coverage expert guidance

Already have an account?
For enterprise-wide or corporate access, please contact our Sales Department at 1-800-543-0874 or email [email protected].

 

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.

Live Chat