Insurance Companies Must Cover $6 Million TCPA Settlement Under Theory of Invasion of Privacy

As some of you may recall, we reported in our sister blog last May on the Illinois Supreme Court’s decision in Standard Mutual Ins. Co. v. Lay, 2013 IL 114617, holding that statutory damages under the Telephone Consumer Protection Act (“TCPA”) are not punitive, but remedial.   On Friday, we saw one of the first aftershocks of that Illinois high Court’s decision, when Judge Lefkow, district judge for the Northern District of Illinois, held that the defendant, M&M Retail Center, Inc. acted with a reasonable anticipation of its liabilities by entering into a $6 million settlement with the plaintiff without input from its Insurers.   Maxum Indemnity Co. and Security Ins. Co. of Hartford v. Eclipse Mfg. Co., et al., Case No. 06-cv-4946 (N.D. Ill. Nov. 1, 2013).

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