Standard Mutual Ins. Co. v. Lay

This case presents question as to whether trial court properly granted plaintiff-insurance company's motion for summary judgment in action seeking declaration that it had no duty to either defend or indemnify pursuant to plaintiff's insurance policy defendant-insured for settlement of underlying action against defendant that had alleged violation of Telephone Consumer Protection Act (TCPA) stemming from defendant's sending of unsolicited fax advertisement. Appellate Court, in affirming trial court, found that $500 liquidated damages provision under TCPA is penalty that is punitive in nature, and thus was not insurable as matter of public policy and could not be recoverable from plaintiff.