Class actions involving the Telephone Consumer Protection Act of 1991 (TCPA) are nothing new. What is new is that they recently hit the real estate industry. Worse yet, insurance companies have grown increasingly savvy in excluding coverage for those types of lawsuits. Nonetheless, a smart company might be able to bargain away its questionable insurance rights in exchange for settling a TCPA class action.
Continue Reading

One strategy companies can try when defending against potential class-action liability is to seek insurance protection, typically from an errors-and-omissions policy. If coverage is questionable and the insurer balks, a possible window opens: The insured could settle with the plaintiff and assign its policy rights to the class, which can then pursue the insurer. A recent decision in Illinois shows that this sort of three-billy-goats-guff strategy does not always succeed—at least for the class.
Continue Reading