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Case Briefs

By ALM Staff | Law Journal Newsletters |
December 28, 2006

Illinois Supreme Court Finds Duty to Defend TCPA Action under Advertising Injury Coverage

In Valley Forge Ins. Co. v. Swiderski Electronics, Inc., No. 101261, 2006 WL 3491675 (Ill. Nov. 30, 2006), the Illinois Supreme Court became the first state supreme court in the nation to rule on advertising injury coverage for a suit under the Telephone Consumer Protection Act ('TCPA'), 47 U.S.C. '227. Deciding an issue that has divided courts around the country, the Illinois court held that two insurers owed a duty to defend a TCPA action under their advertising injury coverage for suits alleging 'publication of material that violates a person's right of privacy.'

According to the court's opinion, 'The TCPA makes it 'unlawful for any person within the United States ' to use any telephone facsimile machine, computer, or other device to send an unsolicited advertisement to a telephone facsimile machine.' ' The Act creates a private right of action that permits recipients of unwanted fax advertisements to seek injunctive relief and damages, and treble damages may be awarded if a court finds that the sender of a fax acted 'willfully and knowingly.”

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